------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 2000 Issue : 06/ -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + Petition for summoning Musharraf rejected in Plane case + IMF voices optimism on accord with Pakistan + US can't let Musharraf fail: Zinni + SC issues warrants for contemners + Albright urges India, Pakistan to lower tensions + Delhi-Islamabad tension increases + EC pledges help to drought-hit people in Balochistan + Russia optimistic about future ties: Mediation on Kashmir offered + UK to give details of Asif's assets + Ties with Pakistan cordial, says EU envoy + LHC allows ad hoc lecturers to continue till decision + Complaint filed at UN over blocked accounts + Moratorium on Nuclear test to continue: Sattar + Punjab minister resigns --------------------------------- BUSINESS & ECONOMY + Pakistan can't cut defence budget: Jabbar + Bulk of budget goes to debt servicing, defence: US ambassador + IMF, WB okay steps to quicken debt relief + 60,000 rich people are tax evaders: survey + Healthy profits by investment banks + Bars cautioned against helping tax evaders + Discussion on Pakistani exports + Rupee sheds more weight + State Bank intervenes to stop rupee fall + Sindh slams SBP for deducting Rs8.3 billion + Oil price hike to hit poor nations: Shaukat + 100% increase in postal charges sought --------------------------------------- EDITORIALS & FEATURES + In the name of the law? Ardeshir Cowasjee + Recurring illusions Ayaz Amir + In the firing line Irfan Husain ----------- SPORTS + Pakistan face Australia for bronze medal + Pakistan go down fighting to Korea in the Semi Final

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NATIONAL NEWS
20000930
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Petition for summoning Musharraf rejected in Plane case
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Shamim-ur-Rahman

KARACHI, Sept 29: The application of former prime minister Nawaz
Sharif's counsel for calling Gen Pervez Musharraf and others as
witnesses was dismissed on Friday by a full bench of the Sindh High
Court which held it was not filed with bona fide intention but to
obtain undue advantage.

After the dismissal of this application hearing in Nawaz Sharif's
appeal against his conviction in the Oct 12 plane case was
concluded and the prosecution's appeal for enhancement of his
sentence by the trial court would now be taken up on Oct 4.

The full bench comprised Chief Justice Saiyed Saeed Ashhad, Justice
Sarmad Jalal Osmany and Justice Wahid Bux Brohi.

"We are satisfied beyond any doubt that the appellant has failed to
make out a case for production of additional evidence of the
witnesses in question and that his application has not been filed
with bona fide intention but with a view to obtain undue advantage,
which cannot be permitted," observed the chief justice in the order
while dismissing the application.

The order stated that "allowing the appellant to call the witnesses
in question would amount to provide him extraordinary benefit to
improve his case at the cost of the prosecution, which cannot be
done in any case."

The application under section 428 Cr.P.C. was filed by Barrister
Azizullah Shaikh on behalf of his client in which he had prayed for
calling, as court witnesses, Gen Pervez Musharraf, Gen Ziauddin, Lt
Gen (Retd) Iftekhar Khan, Lt Gen Tariq Pervez, Lt Gen Akram, Lt Gen
Saleem Haider and ASF commando for anti-hijacking, who was on duty
on board PK-805 on Oct 12, 1999.

Mr Shaikh had sought the presence of Gen Musharraf on the ground
that after the statement of the state counsel Barrister Zahoorl Haq
that Oct 13 speech of the general be treated as the FIR of the
incident and the report filed by Col Atiquzzamn Kiyani under
section 154 Cr.P.C was his 161 Cr.P.C. statement, it had become
necessary for him to appear in the court and state facts relating
to alleged hijacking of the PIA flight.

The presence of Gen Ziauddin, Lt Gen Tariq Pervez, Lt Gen Akram, Lt
Gen Saleem Haider was sought for giving statement with regard to
the existence of a plan prepared by the army to overthrow the
constitutional government of the appellant due to his differences
with Gen Musharraf.

The appellant had prayed for summoning Gen (retd) Iftekhar Khan and
the ASF commando to remove the doubt and establish positively as to
which agency or authority or person was controlling the aircraft
after 7.13pm till the time of landing at 7.48pm on Oct 12, 1999.

The order recalled Azizullah Shaikh's contention for calling of
additional witnesses was necessary to remove all doubts and
uncertainties which were lurking on the prosecution's case owing to
which the court would not be in a position to give a just, fair and
proper decision.

His further submission was that the evidence available on record
was not sufficient to establish beyond any reasonable doubt the
existence of hostilities between the appellant and Gen Musharraf
(which he had termed as power struggle), and with regard to the
possibility of a planned coup.

The other circumstances which according to Mr Shaikh had
necessitated calling for additional witnesses, was the conversation
between Gen Musharraf and Gen Iftekhar Malik at the Karachi airport
with regard to the obstruction in the landing of the plane at
Karachi after the control of ATC was taken over by the army.

State counsel, Zahoorul Haq, vehemently opposing the application
had maintained that on the facts and circumstances of the case, the
appellant could not have recourse to the provisions of Section 428
Cr.P.C. because these provisions were to be put into action very
sparingly for allowing additional evidence.

It was to be invoked when the court was satisfied that the evidence
adduced in a particular case was not at all sufficient to enable
the court to come to a just and fair conclusion in deciding the
case and that without calling additional evidence there was
likelihood and possibility of miscarriage of justice, he had
submitted.

He had argued that his observation that Gen Musharraf's Oct 13
speech should be treated as FIR of the incident was merely a
suggestion and had not actually that it was a formal FIR.

Barrister Haq, had submitted that Gen Musharraf, in his address had
very briefly mentioned about the incident, owing to which a formal
FIR was lodged by Col Atiquzzaman Kiyani.

With regard to Barrister Shaikh's contention about the conversation
between Gen Musharraf and Iftekhar, Barrister Haq had maintained
that it was not crucial for deciding the commission of offence of
hijacking. However, he had submitted that even if it was admitted
that the issue was very vital, then there was already enough
evidence in the shape of evidence of prosecution witnesses, Brig
Nadeem Taj and Captain Sarwat.

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20000929
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IMF voices optimism on accord with Pakistan
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PRAGUE, Sept 28: The International Monetary Fund on Thursday voiced
optimism on chances of reaching an accord by the end of the year to
resume financial assistance to Pakistan.

Speaking at a joint press conference at the World Bank and IMF
press centre, the IMF deputy managing director, Eduardo Aninat,
said that he was encouraged by the recent contacts between the Fund
and Pakistan authorities.

Finance Minister Shaukat Aziz and the IMF executive director, Abbas
Mirokhor, were also present on the occasion.

"We are going to analyze the results of the last mission and if it
concludes successfully we will have a working programme by the end
of the year," Mr Aninat said.

He said that the IMF had been working with the Pakistan government
since April 1999 for restoring the interrupted GoP-Fund
relationship.

Several IMF missions had visited Pakistan for discussion on
macroeconomic framework and for provision of technical assistance
with regard to statistical reporting, fiscal and monetary policies,
he added.

Mr Aninat said that after the return of the last mission a week
back and discussion in Prague during this week the Fund certainly
encouraged by the structural and macro-framework agreed on and he
could state that after a review by the Fund "we will go to the
board for approval of a standby facility."

The facility, he added, could move to a medium-term arrangement
subject to satisfactory performance by Pakistan. The proposal will
be put to the board of the fund towards mid-November if prior
actions agreed on mutually are met with.

The programme would be in place before the end of this year.

Shaukat Aziz briefed the reporters about his discussion with the
IMF managing director, World Bank president and other officials,
who had assured him that they all wanted Pakistan to grow and
became economically self-reliant.

The minister said: "We look forward to the proposed standby
agreement and expect eventual conversion to a medium-term poverty
reduction growth fund (PRGF) programme.

Mr Aziz said: "We welcome the prospects of having a standby
agreement by the end of the year and we are very pleased with the
progress achieved so far."

He said the nature of the talks between Pakistan and the IMF had
changed recently, with the accent now placed on poverty reduction
initiatives.

He added that his government was also committed to a financial
sector privatization programme, a liberalized exchange rate
mechanism and lower public subsidies.

Mr Aziz said he was encouraged by the talks held with the IMF,
World Bank and Asian Development Bank.

He said this during a 40-minute meeting with IMF Managing Director,
Horst Koehler.-AFP/APP

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20000930
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US can't let Musharraf fail: Zinni
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Correspondent

WASHINGTON, Sept 29: "If Pakistan fails, we have major problems. If
Musharraf fails, hardliners could take over, or fundamentalists, or
chaos. We can't let Musharraf fail."

This remark is attributed to Gen Anthony C. Zinni, who retired as
head of the US central command last month, in the second of a
series of articles by The Washington Post examining the political
and diplomatic clout of regional commanders-in-chief of the US
armed forces.

In the first instalment published in Thursday's issue (and reported
in Dawn on Friday), it was stated that it was Gen Zinni whom Gen
Musharraf had first contacted when the latter had received a "stern
protest" from the US administration after his coup ousting Nawaz
Sharif.

In the same article, Gen Zinni had also claimed that he had
persuaded the Clinton administration to keep the diplomatic door to
Pakistan open rather than clamp it shut as advocated by others.

The instalment published on Friday is largely confined to Gen
Zinni's preoccupations with the Central Asian Republics. It says a
US team will train 300 Kyrgyztanis in counter-terrorism by next
year to confront the Islamic Movement of Uzbekistan whose fighters
had last year swept into Kyrgyzstan on their way to Uzbekistan.

Gen Zinni implies that the US could endanger moderate Iranian
president Mohammad Khatemi's efforts at reform by too soon showing
an inclination towards backing the moderates.

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20000930
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SC issues warrants for contemners
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Rafaqat Ali

ISLAMABAD, Sept 29: The Supreme Court on Friday issued execution
warrants for seven Muslim Leaguers who were sentenced to undergo
one-month imprisonment on the charges of contempt of court.

The execution warrants, sent to the district magistrate Islamabad
and secretary ministry of interior, were in line with the judgment
of five-judges bench which passed the verdict after lengthy
hearings on Thursday.

Out of total seven convicts, three belong to Lahore and four from
Rawalpindi, including Chaudhry Tanveer, MPA Punjab, who is already
in National Accountability Bureau custody.

Suspended MNAs, Tariq Aziz and Mian Munir and suspended MPA,
Chaudhry Akhtar Rasool are from Lahore. MPAs Akhtar Mehmood, Sardar
Naseem, and PML (youth) leader Shahbaz Goshi are from Rawalpindi.

According to the procedure adopted by the Supreme Court, the
district magistrate Islamabad would sent the execution warrants to
the district magistrates of Rawalpindi and Lahore who would arrest
the convicts from their jurisdictions.

It is yet not clear whether all the convicts would be kept in
Rawalpindi Central Jail or some other jail.

An official of the apex court on Friday explained why the convicts
were allowed to leave the court premises after their conviction by
the bench headed by Chief Justice Irshad Hasan Khan.

He said that Supreme Court, being the highest court of appeals,
after deciding the cases sent its judgments to the trial courts and
it is the duty of the trial court to execute the final judgment. In
the present case, however, the Supreme Court acted as trial court
as well as the appellate court.

A three judges bench first acquitted all the respondents for lack
of evidence. But when the case was reopened, a five judges bench
heard the appeal against the earlier judgment and overturned it,
convicting all the respondents for being involved in the acts of
rowdyism in and around the Supreme Court premises on Nov 28, 1997.

Interestingly whenever the Supreme Court sentenced any person on
the charges of contempt of court, there was confusion in the
execution of the court judgment.

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20000928
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Albright urges India, Pakistan to lower tensions
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Correspondent

WASHINGTON, Sept 27: US Secretary of State Madeleine Albright urged
Pakistan and India on Tuesday to lower tensions and reiterated that
the US was keeping open its channels of communication with
Islamabad.

Making her final appearance before the US Senate Foreign Relations
Committee before the term of the Clinton administration ends, Mrs
Albright also said America had not forgotten its friend Pakistan,
and referred in this connection to her recent meeting in New York
with Foreign Minister Abdus Sattar.

Her remarks came in response to questions from senators. She
reminded them of President Clinton's four Rs - Restraint, Respect
for the Line of Control, Reduction in violence and Renewal of
dialogue - and said the US had been urging both Pakistan and India
to follow these principles.

The secretary talked of the opening of a promising new chapter in
America's relations with India and said India could be an important
partner in the struggle for international peace and against poverty
and disease.

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20000928
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Delhi-Islamabad tension increases
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Luke Harding and Rory McCarthy

ISLAMABAD, Sept 27: The nuclear arms race between India and
Pakistan took a dangerous twist on Tuesday night after both sides
pledged to test fire their latest intercontinental ballistic
missiles "soon".

Dr Abdul Qadeer Khan, leading nuclear scientist of the country said
Pakistan was in a position to "hit almost all the major Indian
cities" and had a "stockpile of missiles and atom bombs".

These include Shaheen-II, a missile with a 1,550-mile range,
capable of striking deep into southern India. "It is ready for
testing. We are waiting for orders only," he said.

His comments followed a claim by the Indian defence minister,
George Fernandes, that New Delhi's newest intercontinental weapon,
Agni III, would be test fired "sooner than expected".

The missile, which has a range of more than 1,860 miles, enough to
reach targets in central China, had almost completed the
development stage, he claimed.

The international community imposed sanctions on India and Pakistan
after they carried out tit for tat nuclear tests in 1998.

During a visit to Washington last week, India's prime minister,
Atal Bihari Vajpayee, said that New Delhi would exercise nuclear
restraint. But it has refused to sign up to the comprehensive test
ban treaty.

India is about to sign a US dollars 3 billion arms deal with Russia
during a visit to New Delhi by President Vladimir Putin next week.
It is poised to buy a Russian aircraft carrier, several squadrons
of Su- 30 MKI aircraft and 310 T-90 tanks, all Russian stuff and
nothing from the US.

The deal is part of a massive arms buying spree by India following
last year's escalation of the Kashmir conflict with Pakistan. The
Indian government is expected to confirm on October 8 the purchase
of 60-80 Hawk jets from Britain after 15 years of negotiations with
British Aerospace.-Dawn/ Guardian News Service

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20000930
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EC pledges help to drought-hit people in Balochistan
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Saleem Shahid

QUETTA, Sept 29: A visiting European Community delegation has
described the drought in Balochistan alarming and given an
assurance of providing help to the affected people.

The chief of the delegation, Kurt Juul, who visited the drought-
affected areas on Thursday, told reporters here on Friday that the
situation was very serious.

"We can't do everything but we have so far provided aid to 45,000
drought-affected people. We will continue to review the situation
for future help," said Mr Juul.

The EC envoy visited Siakoh camp near Noshki in Chagai district to
take note of the situation.

The EC's humanitarian office (ECHO) has so far provided relief
goods worth $1.1 million for the drought-hit people.

He said from next month the ECHO through Oxfam would initiate a
"food-for-work" project.

Mr Juul said that 40 tons of wheat seed would be provided to the
affected people to help them grow their own crops.

He added that the relief work was quite satisfactory despite the
fact that the Chagai district was a vast area, larger then many
European countries and it was difficult to reach the scattered
200,000 population. He said the ECHO had so far reached only 45,000
people in Chagai and Khuzdar districts.

He said EHCO had supplied 1,100 tents, 6,000 blankets and 377 tons
of firewood to the affected people in Chagai and Quetta districts.

Besides, it distributed fodder and food among 3,204 households in
Aranji, Khuzdar and 2,067 households in Chagai. It also provided 20
hand pumps in Aranji and 12 in Daak area.

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20000928
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Russia optimistic about future ties: Mediation on Kashmir offered
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Hasan Akhtar

ISLAMABAD, Sept 27: Russian President's special envoy Sergey
Yastrzhembsky has expressed optimism about better bilateral ties
with Pakistan. He said he had grounds to feel "cautiously
optimistic" about better future relations between Moscow and
Islamabad.

Mr Yastrzhembsky said this at the conclusion of his two-day stay
here on Wednesday while briefing the newsmen in the Russain embassy
about the outcome of his discussions with Chief Executive Gen
Pervez Musharraf and other Pakistani officials.

The envoy said he also delivered a message from President Putin to
Gen Musharraf. The envoy without revealing its contents said it
contained Russia's "concerns" about terrorism and narcotics and
"hopes" for development of bilateral relations with Pakistan.

Gen Musharraf invited Russian president to visit Pakistan, which,
the envoy said, had been accepted. Mr Putin, he added, would visit
Pakistan at an appropriate time for which date would be worked out
later.

Earlier the envoy held talks with Foreign Minister Abdul Sattar,
Interior Minister Moinuddin Haider, and head of the Inter-Services
Intelligence (ISI), Maj-Gen Mahmood Ahmed.

The envoy said he found a general understanding on various issues,
particularly fight against terrorism and narcotics trafficking.
However, he stressed the need for concrete action in order to yield
the desired improved relations between the two countries.

Mr Yastrzhembsky, who is also special assistant to President Putin,
said Russia believed that Pakistan as an important player in the
region could play a more substantial role in stablising the Central
and South Asia region.

He said Pakistan was capable of taking more decisive action against
terrorism, drug trafficking and spread of "Islamic fundamentalism"
in the region.

The envoy said during his talks he had taken pains to refute that
the Russian policy was to oppose Islam and asserted that being one
of the few religions recognised by Russia, the Muslims were treated
as equal citizens and accorded equal treatment.

He said Russia like the "six-plus-two" and the United Nationes
recognized the Northern Alliance as the legitimate Afghan
government. He maintained that the Taliban government and their
efforts to push out their opponents from northern Afghanistan was
cause of serious alarm.

Responding to questions the envoy said: "We believe Pakistan and
India are capable of solving the problem of Kashmir on the basis of
the Lahore declaration and Simla agreement. The Russian government
would be willing to act as mediator in this regard if both sides
asked for such assistance", he added.

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20000928
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UK to give details of Asif's assets
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LONDON, Sept 27: British Home Secretary Jack Straw has agreed to
provide Pakistan with details of the assets held by Asif Ali
Zardari, husband of dismissed prime minister Benazir Bhutto, The
Times reported on Wednesday.

Mr Straw will hand over a dossier on the matter to the government
of General Pervez Musharraf, the paper said.

The information could be used by investigators in Pakistan to track
the capital and assets of Asif Zardari, who is serving a five-year
prison term for corruption.

Ms Bhutto, who was sacked as prime minister in 1996, lives in
exile, dividing her time between London, Dubai and New York.

She is awaiting Supreme Court decision on her appeal against a
five-year prison term which is hanging over her for corruption.-AFP

 Our Monitoring Desk adds: The move comes two months after
Pakistan's chief executive Gen Pervez Musharraf, accused Britain of
thwarting his efforts to stamp out corruption by failing to help to
identify and recover assets looted by corrupt officials.

A Home Office spokesman said that Mr Straw had decided to forward
evidence in the Zardari case after taking account of the "changed
circumstances in Pakistan" and carefully considering
representations from both parties.

Reports in Islamabad said that the change of heart had come after
written assurances that Zardari would not face the death penalty
and that the evidence would be used only in a drug case.

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20000926
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Ties with Pakistan cordial, says EU envoy
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KARACHI, Sept 25: The Ambassador of the European Union (EU), Kurt
Juul, has asked both India and Pakistan to exercise restraint to
make further progress on the issue of Kashmir.

He was replying to questions during his address to the members of
the English Speaking Union of Pakistan (ESUP) at a hotel here on
Monday.

Kurt Juul said that the EU common foreign policy is in the initial
stage and has to be constructed.

Replying to a question, he said that there are no EU sanctions
against Pakistan and the trade and cooperation is continuing.

The envoy was of the view that there is a lot of potential for
promoting tourism in Pakistan, specially in the northern areas of
the country.

Mr Juul said that the European Union, at present, is committed to
spend 200 million euros in Pakistan priorly on primary education
and health and 71 million euros on the social action programme.

The ambassador stated that the EU is also contributing to reversing
environment degradation through the programme of reforestation.

Mr Juul said that although the EU and Pakistan maintain cordial and
friendly relations, it does not mean that the EU does not make its
opinion known clearly when, for example, nuclear devices are
exploded, regional stability is at risk, human rights are not fully
respected or the democratic condition is not upheld.

He further added that sanctions imposed by the EU after nuclear
tests need to be lifted as they are vitiating the existing good
relationship

Mr Jaffer said the people want the present government to fulfil its
promise of accountability without fear and favour, to cleanse the
society of all evils and set up a transparent system where rule of
law is supreme.-APP/PPI

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20000928
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LHC allows ad hoc lecturers to continue till decision
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RAWALPINDI, Sept 27: The Lahore High Court has rejected the Federal
Public Service Commission plea to vacate the stay given to ad hoc
lecturers till the submission of a rejoinder by the petitioners
within a month.

The LHC Rawalpindi bench judge, Mohammad Nawaz Abbasi, directed the
cantonment and garrison directorate on Wednesday not to terminate
the services of the lecturers till any decision by the court.

Over 50 male and female ad hoc lecturers of Cantonment and Garrison
Directorate, Rawalpindi, had filed a writ against the FPSC
advertisement for appointment of lecturers against their posts in
May. The LHC had granted a stay in favour of the petitioners.

Sheikh Nasir Saeed appeared on behalf of the petitioners. A number
of female lecturers were also present in the courtroom.

These lecturers were appointed on ad hoc basis in grade-17 and were
being paid salaries after the approval by the establishment
division. But this time, the approval was not given and their
salaries were withheld from July, Ms Chand Saleem, an affected
lecturer told APP here on Wednesday.

In a miscellaneous application in the already pending writ they
prayed that the directions should also be issued for the payment of
the salaries to them. These lecturers, of them 45 were female and
10 male, were serving for the last 10 to 18 years in a state of
uncertainty, she said.

The FPSC had advertised to fill 82 vacant posts in the Cantonment
areas in May this year. The affected lecturers got a stay against
this advertisement from the LHC in May.

Their plea is that they should not be discriminated and should be
confirmed in their posts after FPSC interviews, as was done in the
case of Islamabad lecturers.-APP

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20000927
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Complaint filed at UN over blocked accounts
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Shujaat Ali Khan

LAHORE, Sept 26: An association of overseas Pakistanis, claiming to
represent account holders with blocked foreign exchange accounts in
Pakistan, has approached the UN Human Rights Commission in Geneva
against infringement of their right to property, its Lahore-based
counsel, Dr Farooq Hassan, said on Tuesday.

A preliminary complaint, filed by Masoodul Hassan, President of the
London-based Foreign Currency Account Holders Association, says
that their forex accounts continued to be frozen in Pakistan in
violation of a Supreme Court order.

Nor were they being paid interest in foreign currency as ordered by
the court. A detailed petition will be filed later through a
counsel, the complainant said.

The complaint and the petition, to be filed under Ecosoc
resolutions, would, according to Dr Hassan, be considered by a 25-
member sub-commission of experts before being taken up by the 52-
member UN human rights panel. International law guarantees the
safety of the person and property of individuals and the UN panel
is fully competent to look into violations provided they are
'persistent, widespread and gross', the lawyer said.

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20000926
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Moratorium on Nuclear test to continue: Sattar
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H.A.

ISLAMABAD, Sept 25: Foreign Minister Abdul Sattar said here on
Monday that Pakistan would maintain its voluntary moratorium on
nuclear tests unless an extraordinary situation occurred which
jeopardized its security interests.

Mr Sattar was briefing newsmen two days after his return from New
York after attending the UN Millennium Summit and UN General
Assembly session.

The foreign minister said that neither Pakistan was the first to
conduct the nuclear test nor it would be the first to resume tests
pending the entry of the Comprehensive Test Ban Treaty (CTBT) into
force.

The minister, however, welcomed the Indian prime minister Atal
Behari Vajpayee's assurance in a joint statement with President
Clinton during his Washington meeting earlier this month to
maintain its moratorium on nuclear tests until the CTBT came into
force.

He recalled that Pakistan, since the birth of the idea of the
treaty as part of nuclear disarmament, had favoured its adoption
and had cast vote in its favour in the General Assembly two years
ago.

TIES WITH BD: Mr Sattar, responding to a question on the strains in
relations with Bangladesh, said Pakistan had sent recently a
communication to Dhaka in order to restore the normal cordiality in
their bilateral relations.

The communication pleaded that while the 1971 events were traumatic
enough, the two countries should not allow that to erase the shared
joy and pride in their united struggle that they had launched
against the colonial rule nor pre-empt the future cordial relations
between them.

The communication recalled that Sheikh Mujibur Rahman, the founder
of Bangladesh, in a statement on April 9, 1974, had urged
Bangladeshis to forget the past and take a fresh start.

UN COUNCIL EXPANSION: On the UN reforms Mr Sattar said, the
suggestion, to increase the present strength of five permanent
members of the Security Council to make it more representative, was
favoured by mere 24 speakers at the UN out of over 150. Many more
members spoke in favour of increasing the representation of non-
permanent members on the Security Council, to give them a greater
say in the conduct of the UN affairs.

It was also emphasised that countries which did not subscribe to
the UN objectives or did not implement its resolutions should be
debarred from being SC members.

Mr Sattar said he hoped that Israeli experts, who, on realizing
that policy of repression was not consistent with contemporary
standards of state behaviour, had eventually adopted the course of
peace, would persuade India on its part to follow the same course
in Kashmir.

India has reportedly invited Israeli experts to the occupied Jammu
and Kashmir, to advise on checking the Kashmiri freedom struggle.

TIES WITH US: Responding to questions concerning the chief
executive, Gen Pervez Musharraf's visit to New York to attend the
UN Millennium Summit and several sideline meetings with heads of
states, Mr Sattar said relations between the United States and
Pakistan were on even keel and cordial, independent of the growing
relations between Washington and Delhi. The US concern about the
worsening relations between the two major South Asian states was
evident in the American statements on the subject.

President Clinton who visited the South Asian subcontinent last
year had impressed on both the countries to resume dialogue
process, Mr Sattar said.

KASHMIR ISSUE: The foreign minister said that Kashmir was not
expected to figure in the UN Millennium declaration as no other
specific issues were dealt with in the declaration except in
speeches by those heads of states who addressed the Summit. The
chief executive had in his address, highlighted the dangers arising
from the Kashmir dispute and impressed on influential governments
the need to induce India to promote peace process.

He said the one question that should be upper most on the Kashmir
issue was what the world community could and should do since it had
evidently realized the dangers to the global peace after the May
1998 nuclear explosions by both India and Pakistan.

EXTRADITION ISSUE: The US government has said it will help
Islamabad trace ill-gotten money stashed abroad, Reuters news
agency quoted foreign minister Sattar as saying.

He said that Pakistan had sought such cooperation from several
countries, including Britain, which had been blamed by Islamabad
for not giving enough cooperation.

"Just by chance it is today that I received a letter from the
United States confirming their readiness to extend cooperation to
Pakistan within the limits of the US law," he said while asked
about the fate of Pakistan's requests for the extradition of people
sought for trials at home.

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20000930
-------------------------------------------------------------------
Punjab minister resigns
-------------------------------------------------------------------

LAHORE, Sept 29: Punjab Information Minister Shafqat Mahmood has in
terms of clause 9 of the Appointment of Provincial Ministers and
Oath of Office Order's Order No 8 of 1999 resigned from the office
of a provincial minister, says an official handout issued late on
Friday night.

The governor has approved the resignation of Mr Shafqat Mahmood
from the office of a provincial minister.


=================================================================== 
BUSINESS & ECONOMY
20000925
-------------------------------------------------------------------
Pakistan can't cut defence budget: Jabbar
-------------------------------------------------------------------
By Our Staff Reporter

LAHORE, Sept 24: Federal Information Minister Javed Jabbar said on
Sunday that it would not be possible for Pakistan to curtail its
defence budget even if it was able to resolve Kashmir issue.

Addressing an interactive dialogue held under the National Literacy
Movement, he said the government was keen on resolving all its
outstanding issues including Kashmir with India through
negotiations but it would not be possible for a country like
Pakistan to cut defence spendings as it was located next to a
hostile country which had been expanding its territory right from
its inception half a century ago.

Secondly, the minister said, there was a common trend in the world
to increase defence budget. "A country like Japan which is the
greatest exponent of disarmament has been increasing its defence
budget regularly", he said. This was despite the fact that the
United States had guaranteed the security of Japan. Similar, the
minister said, it would not be possible for Pakistan to compromise
on its security.

Mr Javed Jabbar said those working in the social sector should not
have great hopes as far as increase in allocations for education
and health and resolution of Kashmir issue was concerned. He said
increase in national income could ensure greater share for
education and health. He said that it was also a fallacy that
defence was eating up the major portion of the national budget. He
said it accounted for only 24 per cent of the budget while 38 per
cent was allocated annually for debt-servicing. He said a huge sum
was needed to maintain the huge government machinery and social
sector was left with only 10 per cent of the national budget.

The federal minister said the government was working on an
aggressive plan to increase the national income. He said the recent
tax amnesty scheme yielded about Rs10 billion in 70 days against
Rs1 billion collected from the similar scheme during the last 30
years. He said the initiative added undeclared assets worth Rs100
billion to the national economy.

Mr Javed Jabbar said the present government was criticized for not
including education in its agenda and announcing a national
education policy. He said the government did not want to repeat the
mistakes committed by the past governments which announced several
education policies but did very little to implement them. "We want
to be realistic and do something solid in this regard. We are
preparing a strategy to enhance literacy rate", he said.

Later, the minister told reporters that the government had
constituted the wage board and it would fulfil its constitutional
obligations in the finalization of an award.

Replying to a question, he said the government was trying to evolve
a consensus on the freedom of information ordinance and was already
in touch with the Council of Newspaper Editors, the All Pakistan
Newspapers Society and other representative bodies of journalists.
He said the ordinance would help bring about a balance and decide
educational qualification for newspaper owners.

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20000929
-------------------------------------------------------------------
Bulk of budget goes to debt servicing, defence: US ambassador
-------------------------------------------------------------------
Sabihuddin Ghausi

KARACHI, Sept 28: The USA Ambassador in Pakistan Williams B.Milan
had observed that bulk of the country's budgetary resources were
going to defence and debt servicing and very little was being spent
on social sectors.

"Even if you qualify for a debt relief, how will the donors know
that the resources thus saved would be spent on social sectors",
the USA envoy quipped when a business executive, on Thursday,
confronted him with a direct question whether or not Pakistan was
eligible for a debt relief?

The occasion was a seminar on "How does Pakistan fit into the New
Global Financial Architecture", organized by the Management
Association of Pakistan at a local hotel where the US Ambassador
was the key speaker who read out from a prepared text. He however,
after delivering the speech, replied to a number of questions by
the participants one of which pertained to mounting debt burden on
the developing countries like Pakistan.

"You hardly provide 40 cents per capita on education in Sindh", he
went on to substantiate his statement but was instantly corrected
by the Sindh's Finance Minister Dr Hafeez Sheikh who was also
present in the seminar. But even the correct figure of resources
given in the budget given by the minister were found not to be very
impressive.

The USA envoy however, endorsed Dr Hafeez Sheikh's observation that
there was a growing perception - in the developing countries about
the international financial institutions such as International
Monetary Fund and World Bank - that these institutions operate on
some political agenda dictated by few developed countries. "Such
perceptions about the IMF and the World Bank was eroding their
credibility", the Sindh's finance minister remarked.

"Regrettably, it is so", Williams Milan remarked.

Answering another question he said that foreign investment
situation in Pakistan was not very encouraging. For this he partly
blamed the 'political situation' and partly the unending dispute of
Pakistan government with the private power operators.

"You have to restore investors' confidence", he stressed. But then,
he sounded a note of optimism while referring to the on-going
consultations of Pakistan government with the IMF and the Asian
Development Bank. "Any agreement with IMF and ADB will prove to be
a watershed and a turning point", he said.

"We hope that Pakistan would be able to build upon the standby
agreement, it has recently negotiated with the IMF - Poverty
Reduction Growth Facility - a long-term concessional facility that
focuses on long-term structural reforms.

He said that meeting the IMF pre-conditions and conditions have
positioned Pakistan for renewal lending by the IMF, IFIs and has
also set a stage for a possible Paris Club rescheduling. "This a
start", he read out from his prepared text and went on to say, "it
can be the beginning of a sustained effort at economic reform and
restructuring which will attract both increased domestic investment
and private capital inflows and foreign investment.

The USA envoy explaining the international financial architecture
and said, "it is simply the framework of understanding in which the
international financial system operates", pointing out that its
outlines were worked out by the group of Seven Industrial Countries
(G-7) in June 1999 summit, at Cologne. The G-7 concluded that
primarily, loose and non-transparent financial policies, out of
date international financial institutions, and weak regulations had
caused the problems.

These conclusions led the G-7 to endorse a number of reforms which
Williams Milan divided into six broad categories.

* Strengthening and reforming the international financial
institutions.

* Enhancing transparency.

* Strengthening financial regulation in industrial countries

* Strengthening macroeconomic policies and financial systems in
emerging markets.

* Improving crisis prevention involving the private sector and

* Promoting social policies to protect the poor and most vulnerable
elements of the society.

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20000925
-------------------------------------------------------------------
IMF, WB okay steps to quicken debt relief
-------------------------------------------------------------------

PRAGUE, Sept 24: The IMF and the World Bank approved on Sunday
measures to make debt relief worth about $50 billion available to
20 of the world's poorest countries by the end of the year.

The plan, approved here by the policymaking bodies of both
institutions, would begin to ease the debt burden more quickly than
is now the case.

"We are moving the debt relief process forward in a way that we had
pledged to do," British Chancellor of the Exchequer Gordon Brown,
chairman of the IMF's International Monetary and Finance Committee,
told a press conference.

"Our aim is debt reduction, leading to poverty reduction, leading
to economic development."

The World Bank and the IMF had last year pledged to accelerate the
pace of the their Heavily Indebted Poor Countries (HIPC)
initiative.

The four-year-old scheme offers debt relief to up to 40
impoverished nations that adhere to IMF economic reforms over a
period of three years and commit themselves to poverty reduction
action plans.

To date, however, only 10 countries - Benin, Bolivia, Burkina Faso,
Honduras, Mali, Mauritania, Mozambique, Tanzania, Senegal and
Uganda - have been formally declared eligible by the World Bank and
the Fund for HIPC benefits.

The aim of the latest measures is to add 10 more countries to the
eligibility list by the end of the year. The 20 countries would
then be entitled to receive HIPC debt relief worth $30 billion.

Together with traditional debt easing mechanisms, the 20 would be
in line for a total of $50 billion in relief, according to the IMF.

DEMONSTRATIONS: As IMF policymakers went behind closed doors under
tight security, hundreds of black-clad protesters staged a mock
funeral to call attention to the 19,000 children they say die every
day because authorities in their countries skimp on healthcare to
pay back foreign debt.

The two-hour procession and protest, which culminated in the
breaking of a plastic chain to symbolize liberation from crippling
debt, went off peacefully.

Another 1,500 anti-globalization protests, mainly anarchists and
communists, paraded towards central Prague, carrying black and red
flags.

They displayed banners reading "Welcome to the World Bank bandits
and to the IMF mafia summit" and "Capitalism is against man, man is
against capitalism".-Agencies

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20000925
-------------------------------------------------------------------
60,000 rich people are tax evaders: survey
-------------------------------------------------------------------
Ikram Hoti

ISLAMABAD, Sept 24: About 60,000 people, living in posh areas of 13
major cities of the country, have been listed as tax evaders
following a survey conducted recently, official sources said on
Sunday.

These people, whose names had been put on watch-list, had declared
their income below Rs150,000 in survey forms, the sources said and
added that tax returns, to be filed by them by the end of this
month, would be minutely scrutinized.

The sources said there were more than 4,000 people, living in the
same localities, who had declared their annual income less than
what they spent on electricity, telephone and gas every year. Their
names, too, had been put on the watch-list, the sources added.

" We will first issue notices, asking them to explain as to how
they are managing to live in posh localities with their meagre
income," a senior tax official said.

He said those who had declared their income below Rs 150,000, were
among those first 100,000 people whose tax survey forms had so far
been analyzed.

" The government is in no mood to accept these declarations coming
from the most privileged chunk of the population as valid." he
said."They form 60 per cent of the total analyzed income category,
while those who show income less than what they pay for utilities,
are four per cent. These are mind-boggling figures".

Asked whether these "rich delinquents" included some retired or in-
service armed forces personnel, the official said: "We are yet to
determine which section of the population falls under what
category. But one thing is certain: tax evaders will not be
spared." The official said the authorities were preparing three
lists of such declarants. He said that, out of 100,000 declarants,
whose forms had been analyzed, the department had enlisted 50,000
people who, according to their own statements on income and
spending, were capable of paying tax. These had further been split
into two categories - those who already were taxpayers and those
who were not.

The official said those who were not taxpayers, but had declared
taxable income, would be issued National Tax Number. Thereafter, a
final list would be drawn up before Sept 30, of those among these
50,000, who had shown their income between Rs50,000 and Rs150,000 a
year.

These were people whose declarations had already been termed
unacceptable, in view of their lifestyle.

The official said their declaration, to be made through tax returns
by September-end, would be matched with their declarartion in
survey forms. Those, whose declarations did not match, would be
issued notices right away telling them that that they had evaded
tax.

The official said that all those, showing income below Rs 150,000 a
year, would have to explain how they maintained their current style
of living in posh areas.

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20000930
-------------------------------------------------------------------
Healthy profits by investment banks
-------------------------------------------------------------------
Dilawar Hussain

KARACHI, Sept 29: Investment banks are presenting refreshingly
healthy profits and paying out hefty dividends for the year ended
June 30, 2000. The financial figures of the banks, for the current
reporting season are not due until end-December, but the fresh crop
that has already arrived, show allround improvements.

Security Investment Bank has posted strong growth of 74 per cent in
pretax profit to Rs 54.9 million for 2000, from a year ago pretax
earnings at Rs 31.6 million. Taxed profit of the bank more than
doubled to Rs 42.8 million, from Rs 20.8 million. Gain on sale of
investments amounting to Rs 18.0 million and chiefly the 65 per
cent drop in return paid on deposits and borrowings at Rs 82.2
million, from Rs 147.7 million paid in 1999, benefited the latest
results. The bank proposes to disburse bonus shares at 22 per cent
for 2000; it had paid 10 per cent cash dividend last year.

Al-Meezan Investment Bank Ltd- one of the three securities to be
listed this year- has recommended the maiden cash dividend at 15
per cent. Shareholders are to meet at the AGM on November 16 to
approve the dividend and the accounts which show the bank posting
pretax profit at Rs 170 million and after tax profit at Rs 126
million. The earnings up 20 per cent over last year's pre tax
earnings of Rs 141.3 million and 38 per cent from taxed profit of
Rs 90.9 million.

First International Investment Bank (Interbank) unveiled results on
Thursday, posting more than three-fold increase in pretax profit to
Rs 32.1 million, from Rs 10.9 million the previous year. After tax
profit was up to Rs 26.2 million from just Rs 6.9 million in 1999.
An AGM is scheduled for November 9 at which 10 per cent cash
dividend along with 11.11 per cent bonus would be approved. Last
year, the bank had skipped a payout.

Interbank also benefited mainly from 27 per cent decrease in
returns paid on deposits and related costs, which stood at Rs 243.0
million, compared with Rs 331.2 million the earlier year; though
the bank's income from finance provided had also plunged to Rs
126.6 million from Rs 191.7 million the previous year. The Crescent
Investment Bank Ltd, the first to appear on the investment banking
scene way back in 1989, has already announced interim cash dividend
at 35 per cent for 2000, a huge improvement over 11.5 per cent paid
for all of 1999. Jahangir Siddiqui Investment Bank Ltd, which was
Citicorp Investment Bank Ltd before take over of sponsors's shares
of the Citibank Overseas Investment Corporation (COIC) by the
renowned brokerage firm, Jahangir Siddiqui & Company Ltd, has
announced cash dividend at 10 per cent tied to bonus at 40 per cent
for 2000. For the year 1998, the board had distributed cash
dividend at 15 per cent, the same as the earlier year.

Trust Investment Bank Ltd announced on Friday, cash dividend at 5
per cent, while nothing had been paid in 1999. The dividend came on
the back of 20 per cent increase in pretax profit at Rs 11.4
million for the latest year from Rs 9.5 million the previous year.
After tax profit was up 24 per cent to Rs 11.0 million, from Rs 9.0
million. The Bank derived bulk of the income amounting to Rs 22.6
million, compared with Rs 6.8 million in 1999, from gain on sale of
investments.

Investment banks in Pakistan have generally kept aloof from their
important roles as financial intermediaries and financial advisors
and opted instead to assume more traditional role as short term
lender and as investors in the stock market. Most Investment banks
are known to mainly concentrate on quasi-deposit taking and short-
term financing with quality clients/firms. Many investment banks
are focused on specialised services such as corporate finance,
advisory services, underwriting & placements etc. These activities
generate fee-based income for them.

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20000927
-------------------------------------------------------------------
Bars cautioned against helping tax evaders
-------------------------------------------------------------------
Ikram Hoti

ISLAMABAD, Sept 26: The government has cautioned the tax bars
against helping rich people in their attempt at tax evasion through
their tax returns.

The format of the notices to be issued to those who have
understated their income through the survey forms was finalized on
Tuesday. The format, based on a tax-evader profile of the
understating wealthy people living in posh localities of 13 major
cities, was unveiled at a meeting of the CBR and tax-bar
representatives.

The income tax assessment officers were directed to ensure a
fullest compliance with these notices. The member tax policy of the
CBR, Abdul Wakeel, explained how the people living in posh
localities had understated their incomes.

"We do not want to scare people. A polite but firm notice would be
served on those, who have understated their income despite
maintaining an apparently lavish lifestyle which they cannot hide.
We request our tax bar members not to help these people evade tax
while assisting them in doctoring their books and filing their IT
returns," Mr Wakeel said in his briefing.

He cautioned them that "since the department now has all the
details on their utilities, spending and declarations on income,
the assessment officers cannot be fooled any longer. We have drawn
up foolproof profiles on them, which are based on their own
statements. Declarations of income and spending they make by Sept
30 this year, would be matched with their statements made through
the survey forms. There is no chance of misstating this time."

The CBR official also told the tax bar representatives that the
government would take tough measures to deal with the under-
declarants.

This benchmark, he explained, provided that the total amount of
their declared utility bills would be considered 15 per cent of
their total income. Once the total income is declared under this
formula, nothing less than 15 per cent minimum tax on this total
amount would be expected from them.

He communicated a CBR plan to the assessment officers on how to
deal with the under-declarants.

The notices issued to these declarants would allow them 15 days to
explain why their under-statement or non-statement of income should
not be treated an act of concealment under the Income Tax
Ordinance.

Those, among them, not registered as taxpayers, would be asked to
obtain their National Tax Number within 15 days. On receipt of the
NTN, they were also required to file their returns of income and
deposit tax accordingly by Sept 30.

The strategy applies to two categories of the people who have
submitted their survey forms as tenants and owners of houses in
posh localities. There are 24,000 people - out of the first 100,000
whose income and spending have been analyzed - who have not
declared any income at all. And, there are 60,000 others who have
understated their income.

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20000930
-------------------------------------------------------------------
Discussion on Pakistani exports
-------------------------------------------------------------------
Latafat Ali Siddiqui

TORONTO, Sept 29: A meeting of textile importers will be organized
here on October 14 by Toronto-based Pakistani Consulate to explore
possibilities of enhancing Islamabad's exports to Canada.

Pakistani Consul General Iftikhar Ahmed Arain told Dawn on Friday
that leading industrialists, traders and businessmen have been
formally invited to next month's meeting to discuss matters
relating to Pakistan's export of textile products to North America.
He said Pakistani High Commissioner to Canada Tariq Altaf will
preside over the meeting.

Answering a question he said, first branch of Habib Bank A. G.
Zurich will start operating in Canada from March next year. Arain,
who had a meeting with members of Habib family in Toronto this
week, said that in fact Habib Bank is intending to open its three
branches in and around Greater Toronto Area (GTA). First of these
branches, he said, will be opened in Mississauga and it will start
operation in March 2001. Later two more branches will be opened in
GTA, he said.

Arain confirmed reports that another Pakistani bank - Muslim
Commercial Bank (MCB) was also seeking permission from Canadian
government to open its branch in Toronto soon.

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20000928
-------------------------------------------------------------------
Rupee sheds more weight
-------------------------------------------------------------------
Reporter

KARACHI, Sept 27: The rupee continued its downward journey in the
inter-bank market on Wednesday where it closed at 58.09/58.12 to a
US dollar down seven paisa from the previous close of 58.00/58.05.

Senior bankers said the rupee had touched 58.20 to a dollar on
heavy corporate buying of the greenback before some banks started
selling dollars that lifted the rupee up to 58.12.

They said forward premium on six-month had soared to Rs 2.60 over
spot price up from Rs 2.50 on Tuesday before a fresh spell of
selling brought it down to Rs 2.40. One-month premium had also
risen to 60 paisa but that too fell after a while and closed at 48
paisa. No major transactions were seen in three month forward the
premium on which remained stable at Rs 1.30.

Bankers said the State Bank did not intervene in the market. Some
of them said the fact that non-intervention of SBP on Tuesday and
Wednesday showed that the central bank was no more worried about
the rupee falling behind 58 to a US dollar. But sources close to
SBP said it is naive to interpret the central bank decisions that
way. They said an intervention has to carry an element of surprise
in it-implying that non-intervention on Tuesday and Wednesday does
not necessarily mean that SBP would not try to stabilize the rupee
at a certain level.

In the kerb market the rupee fell to 60.35 and 60.45 for spot
buying and selling of a dollar down from 60.00/60.25 on Tuesday.

President of Forex Association of Pakistan Malik Muhammad Bostan
attributed the fall to a panic-buying of dollars triggered by its
soaring prices in the inter-bank market.

Our Staff Reporter adds from Lahore: The rupee shed another 40
paisa against the greenback in the kerb market In Lahore on
Wednesday as the gap in the demand for dollar and its supply
further widened.

Local currency dealers said a dollar was being sold at Rs60.50 and
bought at Rs60.40 when the market closed in the evening. They said
the price of the greenback had surged because "common people had
also begun converting their savings into dollars, speculating that
its rate would further be pushed up after a clarification by the
IMF on Pakistan's request for loan".

"While the demand (for the greenback) is rising, its supply is
short," currency dealer Mian Amir said. He said the greenback had
lost value in the kerb though the inter-bank market was stable at
Rs57.75 (buying) and Rs58.25 (selling).

Dealers said the rupee could continue its slide against dollar in
the kerb market in the next few days "if no good news from the IMF
arrives".

"The rupee needs to be supported. The clarification by the IMF on
Pakistan's request for loan and the way it had snubbed Finance
Minister Shaukat Aziz for issuing a statement has left a negative
impact on the public confidence on the rupee," a dealer said. "No
one can and will forecast at what price would the rupee stabilize
against the greenback if the IMF does not release loan," he said.

The rupee has lost close to 10% of value in the inter-bank market
since July 20 when the central bank withdrew official cap on the
exchange rate.

The slide, however, was quickened last week when the rupee hit its
lowest in the inter-bank market. Even the central bank failed to
arrest erosion in the value of the rupee by pumping dollars in the
market.

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20000930
-------------------------------------------------------------------
State Bank intervenes to stop rupee fall
-------------------------------------------------------------------
Mohiuddin Aazim

KARACHI, Sept 29: The State Bank had to intervene in the inter-bank
market on Friday to strengthen the rupee that had lost 40 paisa to
a dollar in forenoon trading on an estimated $30 million foreign
debt payment.

In the open market the rupee finished at 60.80/61.00 for spot
buying and selling down 30 paisa from the previous close of
58.50/58.70. Currency dealers said the fall of the rupee in the
inter-bank market had led to speculative buying in the open market
thereby weakening the rupee.

Senior bankers said the rupee had come down to 58.70 for a US
dollar when SBP moved in to rescue it-and sold $15-$20 million in
spot and three-month forward deals. The rupee had fallen on heavy
demand for the dollars by two state-run banks. The banks were
buying greenbacks in bulk for some $30 million foreign debt
payments. The bankers said the intervention stabilized the rupee
and it closed at 58.30 to a dollar at the end of the day showing no
change over the previous close. Some bankers said the rupee traded
at 58.35 and 58.40 to a dollar in tomorrow value after normal
working hours.

Bankers said the intervention was timely and well carried out. The
rupee came under immense pressure this week on debt payments and
kept throwing off its weight against the dollar almost daily in the
inter-bank market. This led to speculative buying in the open
market which coupled with nominal buyings by the SBP went on
pushing the dollar up.

Senior bankers said the weakening of the rupee this week was just
an extension of its slide against the dollar that had begun on
September 18 forcing the rupee to shed five per cent of its value
within a week.

That decline in the rupee value was rather engineered by the State
Bank-to meet an IMF demand for further liberalization of exchange
rate regime.

Even before that on July 20 the State Bank had lifted the cap on
exchange rate partly to meet the demand of the IMF and partly to
help exporters. Since then the rupee has so far depreciated by
about 10.30 per cent.

Senior bankers said though the SBP intervention contained the rise
of the dollar on ready counters it made a little impact on heavy
forward buyings.

They said one-month forward premium closed at 65-75 paisa over the
spot price; three month at 95-115 paisa and six month at 235-265
paisa. They said before one-month and three-month forward premiums
had reached as high as 70-80 paisa and 135-145 paisa respectively
before the intervention.

With net foreign exchange reserves of less than $650 million
Pakistan is struggling hard to remain current on its foreign debt
payments. In July-September this year it made at least $325 million
worth of debt payments and in October-December it has to make $550
million worth of payments.

Against this the chances for any substantial inflow of foreign
exchange are bleak-particularly so because funding from the IMF is
unlikely before the year-end.

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20000927
-------------------------------------------------------------------
Sindh slams SBP for deducting Rs8.3 billion
-------------------------------------------------------------------
Correspondent

ISLAMABAD, Sept 26: Sindh has protested against the State Bank's
"unilateral decision" to deduct Rs 8.3 billion from the provincial
government's food credit on account of one million tons of wheat to
be supplied by Punjab.

The Sindh government has requested Chief Executive Gen Pervez
Musharraf to "stop the finance ministry from exerting pressure on
the provincial government,and direct the Bank to reverse the entry"
and reimbuse the deducted amount.

Official sources toldDawn here on Tuesday that Sindh Governor
Mohammadmian Somroo, in a very strong-worded letter, dated Sept 19,
had raised this issue with the federal government.

The governor had pointed out that the centre had allocated one
million tons of wheat from Punjab as against maximum requirement of
0.7 million tons. He had said that, now the SBP had unilaterally
debited the Sindh food account with Rs 8.3 billion. He had
expressed surprise over this decision, saying that by the time the
SBP deducted such a huge amount from the provincial food account,
not a single bag of wheat had been delivered to Sindh, the sources
said.

The governor had said according to established procedure and
practice, cash credit limit was availed of only after actual
receipt of wheat stocks from supplying agencies, the sources added.

He requested the chief executive to restrain the finance division
from recovering debit balance/undue mark-up other than usual
established procedure.

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20000924
-------------------------------------------------------------------
Oil price hike to hit poor nations: Shaukat
-------------------------------------------------------------------
By Ihtashamul Hague

ISLAMABAD, Sept 23: The finance minister, Shaukat Aziz, expressed
on Saturday concern at the large cyclical swings in the oil prices
and said that it would have implications on the developing
countries' balance of payments.

The minister said this at a meeting of the G-24's inter-
governmental group on international monitory affairs in Prague,
says a message received here today.

The meeting, it said, discussed the impact of the increase in oil
prices in the member states.

Mr Aziz said the recent instability in oil prices together with the
deterioration in the terms of trade due to decline in other
commodity prices had implication on the balance of payment of
developing countries.

The meeting stressed that stability in oil price would benefit both
the producing as well as consuming countries and expressed the hope
that the mutually supportive measures on the part of the two would
be implemented that would contribute to oil market stabilization.

During the discussions the finance minister welcomed the efforts
being made by the IMF to move away from micro management in their
conditionalities to emphasizing country ownerships of home-grown
policies and to invoke a more participatory rather than a tops down
approach.

He encouraged them to resist non-economic considerations in their
decision-making and welcomed the commitment of the World Bank to
respond more expeditiously to the needs of member countries.

Mr Aziz said this in response to comments made at the meeting by
the World Bank president James D. Wolfensohn and the IMF managing
director, Horst Kohler. Both the heads of the Bretton Woods
institutions highlighted their vision to promote sustained growth
and reducing poverty which was supported by the G-24 ministers.

They also highlighted the need for capacity building and
sensitivity towards local cultural and political sectors thus
reflecting ground realities.

Mr Aziz also held several bilateral discussions with ministers from
other member countries. He was assisted by the State Bank governor
and other officials.

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20000927
-------------------------------------------------------------------
100% increase in postal charges sought
-------------------------------------------------------------------

ISLAMABAD, Sept 26: Pakistan Post Office has proposed to the
government to allow it to increase the charges of various postal
services to meet the growing expenses due to rise in the cost of
means of communications.

"The last increase in the postal and cargo service charges was made
some 10 years back and it needs to be revised," Maj Gen Agha Masood
Hasan told APP here on Tuesday.

The postal ticket of Rs2 has been proposed to be sold at Rs4. The
rate of an envelop would also be revised accordingly. The charges
on other service stamps are also proposed to be enhanced.

Proposals to this effect have been submitted to the government for
approval. The postal department had not enhanced charges on its
services since long, while its expenses had gone up, with the
increase in the air, rail and road fares, he said.

About the shortage of tickets at the post offices, Agha Masood said
"the department has made foolproof arrangements to ensure that
there should be no shortage in future".

If there is any complaint about the shortage, an appropriate action
would be initiated against the officer concerned, he warned.

The present government, he said is committed to improve the working
of the department, providing best possible service to the people.

He said a number of coercive measures are being taken to check the
menace of corruption which include discontinuation of issuance of
tickets through electronic machines.

Agha Masood, who took over his responsibility early this month,
said he had made a comprehensive plan for revamping of the
department. "There are a lot of things to be done," for which he
said the available resources are being streamlined.

In order to improve the efficiency of nearly 50,000 postal
employees, he said various steps are also being taken for their
welfare. Various genuine complaints of the employees are being
addressed on urgent basis, he added.

The government, the Director General said, has decided to run the
department purely on commercial basis. They, he said has planned to
spend its earning on the development of the postal services,
bringing it at par with other developed countries.

He said they have planned to increase its profit from Rs105 million
to Rs500 million.

Back to the top
=================================================================== 
EDITORIALS & FEATURES
20000924
-------------------------------------------------------------------
In the name of the law?
-------------------------------------------------------------------
Ardeshir Cowasjee

THIS column is about a man, an elected representative of the
people, a suspended MQM member of the suspended National Assembly.
His name is Kunwar Khalid Yunus, but as his name would suggest, he
is not a prince. I have known him for some ten years.

Khalid claims to be a politician, but is known as a party activist
and is a journalist of sorts who has written much in defence of his
party. No reasonable man can agree with either his party's views or
the views which he propagates.

The MQM is acknowledged to have fascistic tendencies and my dislike
of this party is as intense as it is of all our other political
parties which are led by men and women who are corrupt in more
sense than one, who work solely towards self-aggrandisement and who
all claim to be democrats, members of a 'democracy' - said to be a
blissful dispensation but one which this country has never
experienced. The Western world continues to demand that we restore
that which we never had.

Having declared my interest, I plead for Khalid, a fellow man, a
fellow human being. He is in Central Prison, Karachi, where he has
now been for just over a year, having been in and out of jail
several times over the past decade. Since September 11, 1999,
shortly prior to the ending of the last of our so-called democratic
governments, to date he has not been produced in court once.

Khalid has not been disoriented as this is his third round as a
political prisoner. He was first arrested and jailed in June 1992,
accused of having committed a string of crimes, and was bailed out
in March 1993. He was arrested and jailed again in May 1994, again
for a long list of crimes, and released on parole in January 1997
when Nawaz Sharif was wooing the MQM in preparation for the
February elections.

This time he remains involved in 82 cases registered at 25 police
stations and to free himself he will have to appear before 22
magistrates and judges. The sections of the Pakistan Penal Code
under which he has been booked are the following:

Section 34: Acts done by several persons in furtherance of common
intention; Section 36: Effect caused partly by act and partly by
omission; Section 63: Amount of fine. Where no sum is expressed to
which a fine may extend, the amount of fine to which the offender
is liable, is unlimited but shall not be excessive; Section 109:
Punishment of abetment if the act abetted is committed in
consequence and where no express provision is made for its
punishment; Section 114: Abettor present when offence is committed
deemed to have committed the offence; Section 115: Abetment of
offence punishable with death or imprisonment for life if offence
not committed; Section 120-B: Punishment for criminal conspiracy
same as for abetment; Section 124-A: Sedition - attempt to bring
into hatred or contempt or to excite or attempt to excite
disaffection towards central or provincial government; Section 147:
Rioting; Section 148: Rioting with a deadly weapon; Section 149:
Every member of an unlawful assembly guilty of offence committed in
prosecution of common object; Section 153-A: Promoting enmity
between different groups; Section 153-B: Inducing students etc to
take part in political activity; Section 188: Disobedience to order
duly promulgated by a public servant; Section 234: Making or
selling instrument for counterfeiting Pakistani coin; Section 302:
Murder; 307: Attempt to murder; Section 323: Voluntarily causing
hurt; Section 324: Voluntarily causing hurt by dangerous weapons or
means; Section 325: Punishment for voluntarily causing grievous
hurt; Section 332: Voluntarily causing hurt to deter a public
servant from his duty; Section 335: Voluntarily causing grievous
hurt on provocation; Section 337: Causing hurt by an act
endangering life or personal safety of others; Section 341:
Wrongful restraint: Section 343: Wrongful confinement for three or
more days; Section 347: Wrongful confinement to extort property, or
constrain to illegal act; Section 353: Assault or criminal force to
deter a public servant from discharge of his duty; Section 365:
Kidnapping or abducting with intent secretly or wrongly to confine
a person; Section 367: Kidnapping or abducting in order to subject
a person to grievous hurt, slavery, etc; Section 435: Mischief by
fire or explosive substance with intent to cause damage; Section
436: Mischief by fire or explosive substance with intent to
destroy; Section 437: Mischief with intent to destroy or make
unsafe a decked vessel or one of twenty tons burden; Section 506:
Punishment for criminal intimidation.

Apart from all these, he has been booked under Section 14EHO
(punishment for theft liable to tazir), and various sections of the
Qisas and Diyat ordinance/act. Each 'First Information Report'
(FIR) on the basis of which each of the 82 cases have been filed
encompasses one or more of the sections listed above.

The courts before which he should appear (he has not so far been
taken to any) include District Central: Courts No.1, 2, 3 and the
District Judge's Court; District East: Additional District Judge's
Court, No.1, 2, 3, 5, 6, 7, 8; Judicial Magistrate's Court No.9,
Senior Civil Judge (M). The police stations where the FIRs were
filed include Gulbahar, Tamooria, Gulberg, Sharifabad, Nazimabad,
Jahaurabad, Liaquatabad, New Karachi, K A Nagri, North Nazimabad,
Civil Lines, Azizabad, Ferozabad, Korangi, Alfala, Zaman Town, Aziz
Bhatti, Shah Faisal, Jamshed Quarter, Landhi, Malir City,
Quaidabad.

Khalid has an aged ailing father who retired honourably as a senior
superintendent of police, an aged ailing mother, a distraught wife
who used to run a school but now cannot as she is the one who runs
around to the various courts trying to arrange for bail, and a
young daughter, now in college, who has a bullet lodged in her
abdominal area as some ten years ago a bullet aimed at her father,
whilst he was in his garden with her, got to her instead.

The Chief Justice of Pakistan, Irshad Hassan Khan, has a heavy
schedule. He has recently visited the United States where he met
judges of the US Supreme Court, who were as impressed by him and
his judgments as they were by other of our chief justices who have
previously called upon them. Justice Khan is now in Nepal attending
a SAARC conference. Whilst there he has stated that the judiciary
in Pakistan is independent of the executive and that its rights are
intact. On his return, he will be presiding over a the Bench
hearing an appeal which must swiftly be decided as it involves the
redemption of the honour and prestige of the apex court of our
land. There is sufficient evidence on record to prove that the
November 1997 storming of that august institution by a mob was
organized by the party in power, the Pakistan Muslim League of
Nawaz Sharif. Now that Nawaz and his faithfuls have been deposed
of, there should be no difficulty in producing evidence if any be
found lacking.

Would the Chief Justice of Pakistan very kindly read this column,
convert it into a petition (as has been done before), and instruct
a bench of his brother judges to hear it as soon as is possible as
it involves the life and liberty of a citizen of this country.
Khalid should at least be released on bail forthwith and it should
be ensured that the security sought is not onerous. Should Khalid
decide to jump bail and seek asylum with his Great Leader, Altaf
Hussain, in Britain, I can assure our good judges that it will be
our gain and Britain's loss.

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20000929
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Recurring illusions
-------------------------------------------------------------------
Ayaz Amir

HISTORY, whether as tragedy or farce, is not the only thing which
repeats itself. Illusions also have many lives and in Pakistan none
more so than the illusion that a military government, recognizing
the difficulties it faces, will simply fade away. Or will abdicate
its authority in favour of the same political class it has spent so
much time and passion in reviling. For such high-minded thinking
there is no cure.

Since historical parallels can serve to illumine the paths of
foolishness, it is instructive to take our minds back to the Zia
era when hypocrisy was installed as the guiding light of state
policy. For well into the middle of that dreary winter, there was
no shortage of liberal souls whose shrill voices could be heard
declaiming that the junta just could not go on, that something had
to give, that Zia's difficulties were so insuperable, his popular
support so minimal, that he would have to quit. Eventually Zia did
move towards a democratic time-table but in his own good time and
of his own accord.

We have come full circle: from military rule to military rule, with
a wide swathe of Pakistani democracy (distinct from other forms of
democracy) in between. And as if to prove that myths and illusions
die hard, the country's drawing rooms are again awash with the
sentiment that the Musharraf regime is so unpopular (which, sadly,
it is) and so bereft of options (about which I am not so sure) that
it will have to take politicians on board preparatory to a
dignified and constitutionally safeguarded exit.

The national drawing rooms, repositories of what might pass for
superior wisdom, may have a point. After all, the Musharraf regime,
on the threshold of its first anniversary, has not done much beyond
shattering the expectations with which it came into power. But the
counterpoint needs also to be made: no one in a tribal setting,
which is the setting for Pakistani politics, surrenders power
voluntarily. Certainly not after addressing the General Assembly
and being told by the tight circle which surrounds every ruler what
a powerful impact it had. Certainly not after getting used to the
seductiveness of power. Note the Generalissimo's well-cut suits and
sherwanis and the jaunty handkerchiefs he sports in his breast
pocket. Are these the signs of a nervous commander-in-chief about
to invite the likes of Ejazul Haq to share power?

In few other countries would such stand-by comics be considered as
serious political contenders. But they are in Pakistan where it is
the peculiarity of the climate for such personalities to be
nurtured. Ultimately it is the nation, sorely pressed on so many
fronts, which has to put up with their performances.

Sympathetic foreigners (as opposed to those who come with their
eyes closed and their prejudices all on fire) are constantly amazed
by Pakistan. Unless they go to a madrassa they will see little of
the fundamentalism which so preoccupies fly-by-night western
reporters. They will come across instead a people who for all their
faults are hospitable and hard-working, and enjoying (for what
these comparisons are worth in a poor corner of the globe) a better
standard of living than anywhere else in South Asia. Don't be
surprised by this. For all our passion for breast-beating and
looking at the darker side of things, let us not forget that the
telephones work better here than in India, the roads are better and
people in general, in the mass, eat better. The statistics may be
on the side of India or Bangladesh. The reality is altogether
different.

Given all this, sympathetic foreigners wonder why the Pakistanis
they meet are forever moaning about their country and its place in
the world. These foreigners lose some of their surprise when they
come across Pakistan's leaders, in power or out of it. A more
depressing and dismal lot is hard to imagine. Let any American
embassy officer meet any of these would-be national saviours, and
these saviours make it a point for a picture and a small press
release of their meeting to appear in the newspapers. Endearing as
this trait is, it is also reflective of the collective mediocrity
holding sway over Pakistani politics.

In one thing, however, it would have to be confessed we are behind
the rest of South Asia and indeed the world and that is in our
attitude to fun. In the Islamic republic all forms of what would be
considered normal and natural fun anywhere else are outlawed, cops
being less concerned about hidden bombs than the morals of their
countrymen. This is what gives a somewhat joyless aspect to
Pakistan: young and old alike, unless they happen to be rich and
therefore able to afford their sins, forever contemplating the
challenge of empty evenings. The liberati welcomed Musharraf
because he was expected to change all this. They are dismayed
because, probably getting the better of his own inclinations, he
has begun learning the art of choosing his windmills carefully.

But this is far from where I started. The political class, helped
in no small measure by the punditry on offer in the press, is
saying the military is left with no options. As if there was an
abundance of options under the Heavy Mandate and previous to that
under the Queen of the East. Surface impressions notwithstanding,
the generals are playing ball with the Americans. In the last
twelve months they may not have delivered much to the miracle-
expecting people of Pakistan, but they have acquired a better
understanding of what makes the world tick (aka real politik).
Hence the toning down of rhetoric against India. Hence the
acquiescence, if only for a while, in the Hizb ceasefire in
Kashmir. Hence also the studied and desperate attempts to fulfil
IMF conditions in order to qualify for a bail-out package from that
den of philanthropists.

Pakistan's condition, and by extension that of its ruling generals,
would be desperate if this bail-out package (forget about its size)
were to be denied and if Pakistan as a consequence were to be
confronted with the perils of international default. But some sort
of package will come the way of the world's second nuclear-lined
begging bowl, the first being Russia's. And if after a year of
braving the fury of the Pakistani bazaar - GST, documentation, tax
survey, etc - the military government is seeing the outlines of
international relief on the horizon (something which it will also
construe as a sign of breaking out of its international isolation),
does it at all stand to reason that precisely at this juncture,
when the efforts of the past twelve months appear to be bearing
fruit, it should admit weakness and failure by changing course? In
the real world it does not happen like this. The army could have
opted for a political solution in the weeks immediately following
the October coup. Not now when it is riding the tiger's back.

Let us also not forget another thing. Zia's position right from the
moment he seized power (July '77) till more than two years later
was much more desperate than Musharraf's. In order to make ends
meet Pakistan had to mortgage its rice exports in 1979 for a
commercial loan of just a hundred million dollars arranged through
Agha Hasan Abedi of the defunct BCCI. This was a measure of Zia's
plight till the Soviet adventure in Afghanistan (December '79) sent
his international stock soaring.

No doubt times are different but let us keep things in perspective.
The last 12 months were pretty hard for Musharraf: grappling with
the tide of public expectations, trying to make accountability
work, settling accounts with Nawaz Sharif, learning the ropes of
power, and all the while dancing in some desperation to the tune of
the IMF. Now his teething troubles are behind him.

In any event, Pakistan is not Myanmar. Equally important, it has
(with apologies to the Queen of the East) no Aung San Suu Kyi. For
Musharraf this is time for consolidation, not retreat. For the
people of Pakistan time to ponder afresh their destiny and learn
once again the meaning of patience.

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20000930
-------------------------------------------------------------------
In the firing line
-------------------------------------------------------------------
Irfan Husain

OF late, a spate of comment, criticism and editorials has appeared
in the press, alleging all kinds of fiscal improprieties by senior
defence service officers as well as their civilian partners in
crime.

So much so that the government has felt the need to deny some of
these charges in very strong terms. Some allegations, however,
remain unanswered. For instance, The Star, a Karachi evening paper,
recently ran a story under the banner headline "DHA [Defence
Housing Authority] demands 20,000 acres along National Highway."
According to the report, the Sindh government has been asked to
allocate this land to the Authority at nominal rates so that it can
develop it and sell it to retired defence personnel. Had it been
for this specific purpose, perhaps not so many eyebrows would have
been raised. However, we know all too well that this cheaply
acquired land is subsequently transferred to civilians at market
rates, giving their original owners windfall profits. All of
Pakistan's major cities have "defence societies" where the vast
majority of residents and property owners are civilians.

Page two of the same newspaper contains a long story - largely
attributed to "observers" and "military analysts" - repeating
accusations of corruption against senior generals made by
politicians, most notably Qazi Hussain Ahmad, the Jamaat-e-Islami
chief. In the report, one observer has been quoted as saying about
these allegations: "If this is true, all those involved should be
tried for high treason because they have played with the integrity
of the country and damaged national interest."

Granted that evening newspapers do not enjoy a very enviable record
for factual reporting, no denial of the DHA story has appeared in
the press. However, The Nation is a more serious daily, and it,
too, has been carrying stories and editorial comment on this
subject. For instance, it has recently carried a long interview
with Saifur Rahman, the previous (and now jailed) accountability
czar in which he has made serious and detailed accusations against
some top naval, air force and army officers. He has also named
Abdullah Al-Aseer, arms dealer Adnan Khashogi's son-in-law and Amir
Lodhi as being associated in massive scams relating to arms
purchases.Saifur Rahman went on to say that the amount skimmed off
in the eight deals he had investigated was many times more than all
the money made by civilians and politicians in the frauds he had
examined. In its editorial that appeared on the same day, The
Nation says:

"... His claim is too detailed to be ignored, and it cannot be
denied that he was in a position to know. He has said the [Ehtesab]
Bureau had investigated eight major cases involving about $1
billion, and identified not just the civil and military officers
involved, but their front men, offshore companies and bank
accounts, while witnesses, documents and offshore account details
were all available. As if to prove that he is not whistling in the
dark, Saif disclosed with an abundance of detail, impressive in
someone speaking from memory, the shadier aspects of the Agosta
submarine deal, naming former chief of naval staff, Admiral
Mansoorul Haq, who was asked to resign in 1997, as well as two
major arms dealers, Abdullah Al-Aseer, son-in-law of the notorious
Adnan Khasogi, and Amir Lodhi, a name that keeps cropping up in
these deals..."

The editorial went on to say: "...while civilians have been jailed
and handcuffed, even held without charge, accused retired
[military] officers continue to live in comfortable exile... If
political corruption and loan default is criminal, bungling in
defence deals is treasonous..." Strong words, especially when aimed
at our defence establishment, hitherto generally treated as a
sacred cow by the press and the public alike.

These allegations mask a more general malaise, and indicate that
the nation's honeymoon with military rule is over. The junta's
decision to have the best of both worlds by allowing the press to
function freely while ruling by fiat is proving that the two things
are incompatible in the long run. As long as the early euphoria
lasted, very few dissenting views were expressed. Now the snipers
have taken up positions, and soon it will be open season on the
army. One year can be a lifetime in Pakistani politics, and for
good or bad, the armed forces entered the bloodstained arena of
politics when they seized power last October.

The fact that they were widely welcomed a year ago is more an
indication of Nawaz Sharif's sharp drop in popularity than any
genuine desire for military rule. As long as they operated behind
the scene, the generals retained their aura of rectitude and
efficiency. However, as soon as they took over, they stepped into
the firing line. As a nation, we are far too impatient to wait for
anything whether it is a seat on a bus or accountability of
politicians and bureaucrats. And as we could have foreseen (but
generally failed to), the army has no magic wand to cure the
nation's many ills, any more than civilians do.

The general perception (as opposed to the generals' perception) is
that things are worse than they were a year ago. The public is
bored with the glacial progress of accountability cases, and is
more concerned with rising unemployment and prices. We seem more
isolated than ever before, largely because of the pariah status
Pakistan has acquired after the October coup. All the promise and
dreams of a better tomorrow that we had thought we glimpsed a year
ago have turned out to be a mirage.

In truth, most of this cannot be laid at General Musharraf's door:
he and his colleagues in and out of uniform just do not have any
solutions for the deep-rooted problems of poverty, illiteracy and
the poor economic policies they have inherited. It is we who are
guilty of wishful thinking on the one hand, and an impatience with
leaders who do not deliver instantly on the other. We refuse to
accept that after years of putting off tough decisions and refusing
to inject some discipline into our economy, our society and our
polity, we have now reached a point where there are no easy
answers, no instant panacea.

Under these circumstances, things can only get worse for the army.
General Musharraf should begin to think of a tactical withdrawal
rather than waiting for another two years as mandated by the
Supreme Court: by the year 2002, the bouquets will have turned into
brickbats. A national government comprising neutral figures (and
not discredited politicians like Ejazul Haq) could be established
with the sole mandate of preparing for early elections. Whether we
like it or not, we have to allow the political process to move
forward. Even the powerful Pakistan army cannot keep it in stasis
for very long.

But at the end of the day, General Musharraf may well discover that
taking power was the easy part: as Field Marshal Von Manstein wrote
in his brilliant Lost Victories, disengaging and conducting a
methodical retreat in the face of the enemy are the most difficult
aspects of warfare.


===================================================================
SPORTS
20000930
-------------------------------------------------------------------
Pakistan face Australia for bronze medal
-------------------------------------------------------------------

SYDNEY, Sept 29: Defending champions the Netherlands meet South
Korea in the men's Olympic hockey final on Saturday in a clash that
looked an unlikely prospect only a few days ago.

When the Dutch lost 2-0 to Pakistan in their final pool game, it
meant that unless Britain could upset Champions Trophy silver
medallists Germany, they would have to suffer the indignity of
classification matches.

Against all odds, Britain pulled off a 2-1 win. Three gut-wrenching
hours after their dream of back-to-back golds had turned into a
horrible nightmare, the Dutch were alive again.

"We felt completely lost after that Pakistan game, but we made a
pact that no matter what happened with Britain and Germany, we
would try to finish the tournament on a high," said Netherlands
captain Stephan Veen. "Then when Britain won, we knew we were back
in business."

Netherlands coach Maurits Hendriks has always maintained that his
team deserved to play in the final four, and although it took
someone else to get them there, the champions were never going to
waste their second chance.

In an epic semi-final against Australia which went to a penalty
stroke shootout after finishing 0-0, the Dutch dug deeper than they
had in the entire tournament.

All five Netherlands stroke takers found the net and when veteran
goalkeeper Ronald Jansen denied Australia's Brent Livermore, they
were through to the final.

"I have always felt I had the right 16 players to win this
tournament, and that didn't change after the Pakistan loss," said
Hendriks. "I thought we played a clever first half against
Australia and dominated the second. I thought we deserved to win in
the 70 minutes."

The gold-medal game has provided Netherlands with the perfect
opportunity to send retiring stars Veen, Jansen, Wouter van Pelt
and Jacques Brinkman out on a high.

With more than 1,000 international matches between them, the
quartet will be crucial to Netherlands hopes of subduing the
enthusiastic Koreans who also needed other results to go their way
to make the semifinals after losing 2-1 to Australia in their last
pool match.

Another of hockey's smaller nations, Poland, held India to a 1-1
draw, and the Koreans had their chance to join the big boys.

They progressed on Thursday to the final by beating three-time
Olympic champions Pakistan 1-0 in hockey's equivalent of David and
Goliath.

It was a win for exuberance and courage with South Korea charging
fearlessly at penalty corner maestro Sohail Abbas and then
unleashing some breathtaking attack through star striker Song
Seung-tae Song and captain Kang Keon-wook.

The gold-medal match-up is one few could have predicted, but the
team chosen from just 200 players has already felled one of the
game's giants and they go into the final with nothing to lose.

Much will depend on whether Song is on top form and whether the
bold penalty corner tactics can succeed against a Dutch arsenal set
to explode after a sloppy tournament at the set-pieces.-Reuters

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20000929
-------------------------------------------------------------------
Pakistan go down fighting to Korea in the Semi Final
-------------------------------------------------------------------
Zawwar Hasan

 SYDNEY, Sept 28: Pakistan blew up its chances to contest for a
gold or silver medal in the Olympic hockey. They went down fighting
to the Koreans who won by a solitary goal crafted in a 57th minute
penalty corner. Korea's main marksman, Seong-tai Song, played the
role of the final executioner. Now a bronze remains Pakistan's best
option. On paper it was an unequal fight. Pakistan has three gold,
three silver Olympic medals. It has also won World Cup four out of
nine times. For the Koreans Sydney is only their second Olympic
outing. Since Korea's victory in 1986 Asian Games, they have defied
Pakistan several times.

But there is a silver lining in the cloud. Whether Pakistan wins
the bronze or not, by breaking into the top four Olympic slots it
has secured entry to the World Cup and the Champions Trophy.
Participation in these two tournaments along with the Asian Games
and Asia Cup should provide the PHF the much-needed opportunity to
build a team for Athens. The boys have done their job; the PHF
should now put its act together.

To Pakistan's chagrin Song is always on a song when confronted by
the green shirts. In Atlanta too he drove the last nail in
Pakistan's coffin by upping the tally to 3-1. In doing so he pushed
Pakistan down to its worst standing in an Olympics- a sad sixth in
a field of twelve. Gratefully, here in Sydney Pakistan still
survives with a hope to win the bronze on Saturday if it can beat
Australia in its own backyard. With the crowd support and home
advantage, it is a tall order.

Australians will come back to the game on Saturday with a hurt
pride after losing so narrowly to the Dutch tonight. After having
served as bridesmaids at the Olympics several times they have
become grumpy, old spinsters. Their first crack at the Olympic
crown was turned back by Pakistan at Mexico City (1968) by a
deciding goal from Asad Malik. At Montreal (1976) they managed to
get past Pakistan in a nasty semi-final only to lose the final to
their neighbours across the Tasman. At Los Angeles it was a beauty
of a semi-final goal from Hasan Sardar that washed out their clean
sweep in the other pool.

How a brilliant Sydney afternoon turned gloomy for Pakistan is a
story of luck deserting it in its moment of need. Unlike the last
match against Holland, lady luck smiled on Pakistan's opponents.

This fickleness left the eyes of some Pakistani players and
supporters brimming with tears. There were tears in the Korean camp
too. But they were tears of joy. In only two Olympic outings the
Koreans have given themselves a chance to win a gold medal.

In fact, the Korean celebrations started thirteen minutes from the
final whistle when Song scored. This goal will remain imprinted in
the memory of Pakistanis for a long time to come because this has
obstructed the resurgence of hockey in Pakistan. Jong-Hyun Hwang
pushed in the penalty corner to Woon-kon Yeo at the top of the
striking circle. He passed it on to his captain Keon-Wook Kang who
guided it to Seung-Tae Song. Unsighted by Ahmad Alam, Song slipped
in the match winner.

As the referee pointed towards the centre, the Koreans went into
spontaneous ecstasy. All the Korean players rushed towards their
bench. As there was all round hugging and kissing, the referee
signaled the judges to stop the clock. The Koreans' joy was not
without reasons. In a tightly balanced match a late goal is a
death-knell.

But the Pakistani players, as a matter of principle do not accept
defeat till it becomes official. They remained shell-shocked for a
brief moment. That was time enough for the relentless Koreans to go
in hot pursuit of another. While Song missed a field goal, Han's
penalty corner shot was well saved by Ahmad Alam.

The Pakistanis recovered from the Korean onslaughts soon and raised
a glimmer of hope in the Pakistani camp by forcing the fourth and
last penalty corner. Once again the onrushing defenders managed to
deflect a Sohail Abbas special. Probably playing in his last
Olympics, Shafqat sent a through pass minutes before the final
whistle. Alas, there was no one to latch on to it for the
equalizer.

Utilizing such half chances comes with a lot of practice and
understanding.

As known to anyone with meanest commonsense, this does not come
within three months, even with the best of efforts by those in
charge of hockey now. All top guns in Olympic competitions have
been preparing for Sydney from the day they departed from Atlanta
four years ago. Not even the top guns, even smaller hockey entities
like India, Malaysia, Poland, Canada and Argentina were focused on
the event that takes place every four years.

Inspite of this the Pakistani players did the country proud today.
Statistics support the statement. Pakistan attempted at the Korean
goal at least ten times. The Korean goalkeeper saved eight of them,
while the remaining two went astray. The Koreans could attempt at
Pakistan goal seven times. Pakistan goalkeeper and captain Ahmad
Alam saved all the four field goals and was beaten only once in
three penalty corners.

Manager Islahuddin was truthful when he told pressmen after the
match that the swift dash of Korean defenders nullified the
advantage Pakistan had in the presence of Sohail Abbas. And they
did it at a personal cost. One of them J.W. Lim was taken off the
ground on a stretcher when he attempted to stop Sohail's dreaded
drag flick.

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Last update: Friday, 16 October 2009.