------------------------------------------------------------------- DAWN WIRE SERVICE ------------------------------------------------------------------- Week Ending : 07 July 2001 Issue : 07/27 -------------------------------------------------------------------
Contents | National News | Business & Economy | Editorials & Features | Sports
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CONTENTS ===================================================================
NATIONAL NEWS + N-issue, Siachen on Delhi agenda + President's itinerary finalized + Pakistan insists on meeting with Hurriyat + Musharraf asks envoy to arrange meeting + Summit can have impact on sanctions + Musharraf hopeful of headway in talks + National security discussed + Differences on agenda persist + Faraz hopeful of groundwork for summit + Faraz on pre-summit job in India + Gas pipeline to be on agenda + Musharraf, Vajpayee may resume talks in NY + PML to challenge Tarar's removal + Sajjad opposes role for army + CE bans trade union activities in PIA + CII chief apprehensive of delay in Riba-free economy + Military training in Madaris to be banned: Law being amended + CII endorses law against terrorism with reservations + Islamic council wants to study draft police law + Law ministry rejects 10 draft laws + MC poised to form AJK govt + AJK cabinet dissolved + Afghan DPs start leaving for home: NWFP govt sticks to stand + Jirga wants Nasir Bagh refugee camp vacated + Musharraf lacks mandate: Benazir + Asif shifted to Karachi + PBC issues notice to ex-minister + Justice Rashid Aziz seeks retirement + Sukkur Express derails + Depts to be relocated and merged in dist govt system + Plea to put Saif's name on ECL + HRCP slams violation of election rules + Muttahida, Haqiqi reject election + Discrepancies in electoral rolls + Judgment reserved in Marri case + Shah Nawaz Junejo resigns from PPP + Ex-senator Khudadad Luk held for corruption + 16 new cases against ex-CM + New CBR chief --------------------------------- BUSINESS & ECONOMY + Govt under WTO pressure for import of banned items: minister + Pakistan needs $6bn aid, says WB report + WB admits its performance was not satisfactory + Rs2bn e-govt plan approved + 10 EoIs received for PTCL sell-off + Merger of eight ministries shelved 20 institutions to be wound up + Meeting IMF conditionalities + Investors worried over future share business outlook + Exchange cos to replace money changers + KSE 100-share index sheds another 14.43 points --------------------------------------- EDITORIALS & FEATURES + Dastur-an-Dastur Ardeshir Cowasjee + Revisiting the past Ayaz Amir + Sink or swim Irfan Husain ----------- SPORTS + Saqlain stars for Surrey with six-wicket haul + Pakistan hold Netherlands 2-2, clinch series 1-0 + Pakistan stun Netherlands + India refuse to play against Pakistan in Dubai + PCB mum over Miandad as Bangladesh batting coach + Shokat leads Pakistan in Pro-Am Asia Cup + Ordinance on anvil to enforce National Sports Policy

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NATIONAL NEWS
20010707
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N-issue, Siachen on Delhi agenda
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By Jawed Naqvi

NEW DELHI, July 6: India accused Pakistan of fomenting continued 
violence in the state of Jammu and Kashmir but said relative calm 
along the Line of Control had prompted Prime Minister Atal Behari 
Vajpayee to dispatch his head of military operations on a rare 
visit to Islamabad to consolidate the gains of peace.

Foreign Ministry spokeswoman Nirupama Rao, who made the 
announcement, used the routine media briefing to also urge Pakistan 
to keep the focus riveted to the forthcoming meeting between 
Vajpayee and President Pervez Musharraf and not to get distracted 
by extraneous issues such as a proposal to meet Hurriyat leaders 
during next week's bilateral talks.

Rao was responding to news reports from Islamabad which officially 
confirmed that Musharraf had written a letter to APHC chief Prof 
Abdul Ghani Bhatt for a meeting with him.

Vajpayee also signaled the immediate resumption of the nuclear 
dialogue between the two countries at the experts' level and also 
involving non-official exchanges.

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20010706
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President's itinerary finalized 
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Special Correspondent

ISLAMABAD, July 5: President Gen Pervez Musharraf and Prime 
Minister Atal Behari Vajpayee are scheduled to hold summit talks 
for four and a half hours in Agra on July 15.

According to the official itinerary, President Musharraf, 
accompanied by his wife, Sehba Musharraf, will arrive at New 
Delhi's Palam airport by a special aircraft on July 14 at 08:30 
hours.

After a brief reception at the airport, he will be driven to 
Rashtrapati Bhavan where he will be ceremonially received by 
President K. R. Narayanan and other leaders at 09:00 hours. While 
in Delhi, he will be staying at Rashtrapati Bhavan.

After the ceremonial welcome, Gen Musharraf will drive to Rajghat 
to offer floral tributes at Mahatma Gandhi's Samadhi. His official 
engagements will start on his return to Rashtrapati Bhavan with a 
20-minute meeting with Minister for External Affairs and Defence 
Jaswant Singh, followed by meetings with Home Minister L. K. Advani 
and Leader of the Opposition Sonia Gandhi.

Later, accompanied by his wife, President Musharraf will drive down 
to Hyderabad House to attend a lunch to be hosted in his honour by 
Mr Vajpayee.

Immediately following the lunch, he will visit Neharwali Haveli, 
the ancestral house where he was born and lived for four years 
before his family migrated to Karachi. This will be followed by a 
visit to Dargah of Hazrat Nizamuddin in New Delhi.

In the evening, he will attend an hour-long High Tea reception at 
Pakistan High Commission in New Delhi, where Pakistan plans to 
invite several ministers, leaders of political parties, diplomats, 
journalists and also, if possible, the APHC leaders. India has 
already conveyed its opposition to any meeting between him and APHC 
leaders in New Delhi.

President Musharraf will then attend a banquet to be hosted by 
President Narayanan.

The next day he will leave New Delhi for Agra IAF base at 0830 
hours and drive down to Amar Vilas hotel, where he will stay for 
two days. At 11:30 hours, President Musharraf will be driven to 
Jaypee Palace Hotel, where he will be received by Mr Vajpayee. The 
two leaders will hold a lengthy session - both one- to- one, 
followed by official delagations till 16:00 hours with a lunch 
break in between.

Following the summit, President Musharraf will return to Amar Vilas 
hotel and will be then driven to Taj Mahal. He will attend a 
cultural programme at Jaypee Palace Hotel along with Mr Vajpayee 
followed by a dinner to be hosted by Governor of Uttar Pradesh 
Vishnu Kant Shastri.

On July 16 President Musharraf will begin the day with a breakfast 
meeting with intellectuals. The entire morning has been left free 
for another round of talks with Mr Vajpayee, if the two leaders so 
desire, and address either a joint press conference with the prime 
minister or his own.

He will leave for Jaipur at 14:00 hours, where he will be given a 
brief reception. Then he will depart for Ajmer Sharif. After 15 
minutes' prayers at the Dargah of Khwaja Moinuddin Chishti, he will 
return to Jaipur from where he will leave for Islamabad.

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20010707
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Pakistan insists on meeting with Hurriyat
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By Hasan Akhtar

ISLAMABAD, July 6: Foreign Ministry spokesman Riaz M. Khan said at 
a news briefing here that there would be no agenda for the Agra 
summit but Pakistan wanted it to focus on Kashmir which "has been 
the root-cause of tensions" between the two countries.

The spokesman said the Pakistan High Commissioner in India had been 
inviting prominent personalities including the APHC leaders to all 
its important receptions in the past and the practice would be 
followed in the reception expected to be hosted by Pakistan's High 
Commissioner in New Delhi in honour of President Musharraf. 
However, he pointed out that the process of invitation had not been 
finalized.

The FO spokesman said that Pakistan regarded the APHC as the true 
representative and voice of the people of Kashmir and believed that 
consultations with its leadership were essential for a just 
solution of the Kashmir dispute in accordance with their 
aspirations.

Responding to questions Riaz Khan said: "We are looking forward to 
the summit resulting in a process leading to the just settlement of 
the Kashmir issue in accordance with the wishes of the people of 
Kashmir. We are looking forward to positive results."

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20010706
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Musharraf asks envoy to arrange meeting
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By Jawed Naqvi

NEW DELHI, July 5: Gen Pervez Musharraf has asked his envoy in New 
Delhi to arrange a meeting with the All Parties Hurriyat Conference 
(APHC) during his forthcoming visit to India, APHC chairman Prof 
Abdul Gani Bhatt said.

There were indications in official circles that the move might not 
go down too well with the Indian establishment.

Bhatt quoted a letter from Musharraf, which he said was faxed to 
the APHC office in Srinagar, as saying the President wanted to meet 
the Hurriyat leaders during his India visit and that Pakistan High 
Commissioner Ashraf Jehangir Qazi would make the arrangements to 
facilitate the meeting.

The letter from Musharraf dated July 2nd, as quoted to Dawn by 
Bhatt from Srinagar reads thus:

Dear Professor Bhatt,

Thank you for your letter of 22nd June 2001, proposing a meeting 
with the APHC during my forthcoming visit to India. I look forward 
to an opportunity to meet you and other leaders of the APHC during 
my visit to India. I have asked the High Commissioner to make the 
necessary arrangements in this regard. Let me assure you that 
Pakistan will continue to extend its full moral political and 
diplomatic support to Kashmiri people in their just struggle.

Yours sincerely

General Pervez Musharraf.

Bhatt who was the first and only one to announce the letter said he 
was very happy with it but he did not know if it came from Delhi or 
directly from Islamabad. 

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20010705
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Summit can have impact on sanctions
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WASHINGTON, July 4: US Deputy Secretary of State Richard Armitage 
said there was much work to be done to build political support for 
lifting US sanctions on Pakistan, but the forthcoming India-
Pakistan summit could have an impact on this process.

In an interview, he acknowledged a debate within the  Bush 
administration over whether sanctions imposed on Pakistan and India 
after the 1998 nuclear tests could be lifted separately or must be 
handled together. A formal decision has not been made, but while 
the United States is "heading in the direction" of lifting 
sanctions on India, "we've got a lot of work to do on Capitol Hill 
to develop a consensus to remove some Pakistani sanctions," he 
said.

Armitage said "there is no timetable" for making a decision despite 
the fact that some officials have said lifting the sanctions on 
India could happen soon. Political spadework on New Delhi's behalf 
is needed, but Armitage acknowledged India had a much broader 
backing in the US Congress.

The US official said Islamabad greatly harmed its own case when Gen 
Pervez Musharraf declared himself president. "So I think the 
practicality of things is (that) as nice as it would be to lift 
(sanctions) simultaneously, both actions in Pakistan and the facts 
on the ground here make that a little more difficult," he said. -
(Reuters)

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20010705
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Musharraf hopeful of headway in talks
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Staff Reporter

ISLAMABAD, July 4: President General Pervez Musharraf briefed the 
federal cabinet about his forthcoming visit to India, and said he 
expected some breakthrough to resolve outstanding issues between 
the two countries.

Official sources said the president told the cabinet that both 
sides would have to show "flexibility" to come to terms in the 
larger interest of their people. He said he had been meeting people 
from all walks of life to know their point of view about India-
Pakistan relations. 

Gen Musharraf, the sources said, reiterated that while he was going 
to India with an open mind, he was not unmindful of the fact that 
Kashmir was the real bone of contention and without its resolution 
relations between the two countries could not be improved.

The president informed the cabinet that he had taken politicians, 
editors, Ulema and Mashaikh and Kashmiri leaders into confidence 
about his visit and all of them had extended their full support and 
best wishes to him.

He said he was going to India with an open mind and cautious 
optimism. The issue of Jammu and Kashmir, he said, would be the 
focus of his discussion with the Indian leadership, and added 
Pakistan would be willing to discuss other issues as well.

While contradicting rumours published in a section of the press 
about the cabinet reshuffle, he said there was no truth in such 
reports and no such exercise was being contemplated. All such 
reports of reshuffle were absolutely baseless and false, he added.

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20010704
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National security discussed
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RAWALPINDI, July 3: A meeting of the Joint Chiefs of Staff 
Committee was held at the Joint Staff Headquarters. President 
General Pervez Musharraf presided over the meeting which discussed 
matters relating to defence, national security and professional 
aspects, said an Inter-Services Public Relations news release.

Service chiefs, senior officers of the armed forces and the 
ministry of defence attended the meeting.-APP

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20010703
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Differences on agenda persist
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By Syed Talat Hussain

ISLAMABAD, July 2: Differences persist in the approach of Pakistan 
and India on how to discuss basic bilateral issues during the 
Musharraf-Vajpayee summit, officials dealing with the agenda of Gen 
Pervez Musharraf's visit to India told Dawn.

While Pakistan wants the summit to be pegged onto Kashmir, as other 
items on the agenda could revolve around that order of discussion, 
India wants confidence-building and trust-enhancing measures to be 
the centerpiece of talks, an official said.

"We have been trying to find a mutually acceptable way to fine tune 
this basic difference in approach before the summit meeting takes 
place. We are still at it," he said.

The issues that would be taken up at the summit meeting are quite 
clear now. They include problems of regional stability, nuclear 
arms race, spending on defence and conventional arms build-up, 
Kashmir, Siachin and the possibilities of broadening economic, 
commerce and trade engagements between the two countries.

What is not yet decided is the sequence in which these problems 
would be taken up. "There are considerable differences on how the 
two sides are approaching the agenda for talks," the official said.  
He also indicated that there was a possibility that the talks could 
be divided into formal sessions to have more structured 
discussions.

"The Indians have made the first proposal (on how the discussions 
should proceed) in this regard and we are studying it closely," he 
said. The final blueprint was not ready yet, he added.

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20010702
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Faraz hopeful of groundwork for summit
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NEW DELHI, July 1: Ahmed Faraz said he hoped to prevail on friends 
in political and literary circles in India to create an atmosphere 
conducive for negotiations scheduled to be held between the leaders 
of India and Pakistan later this month.

The United News of India reported quoting Faraz as having said he 
wanted the Indian people to create an atmosphere "that forces 
politicians to solve their problems peacefully". It is time to 
clear up the misunderstandings between the people of the two 
countries, Faraz said, adding: "Nobody can save us but us".

Assessing prospects for the summit between President Gen Musharraf 
and Indian Prime Minister Atal Behari Vajpayee, Faraz said he did 
not have any unrealistic expectations that two people talking could 
solve all problems at one go but at least a beginning could be 
made.-dpa

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20010701
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Faraz on pre-summit job in India
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Staff Correspondent

KOHAT, June 30: In a surprising move president Gen Pervez Musharraf 
has sent poet Ahmed Faraz, a friend of the former Indian prime 
minister I. K. Gujral and Atal Behari Vajpayee, as his special 
emissary to hold important pre-summit negotiations, an official 
told Dawn.

Mr Faraz who left for New Delhi has been assigned the task to woo 
the Indian leaders and create an atmosphere conducive to talks. 

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20010704
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Gas pipeline to be on agenda
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Staff Correspondent

WASHINGTON, July 3: The proposed Iran-Indian gas pipeline passing 
through Pakistan will be on the agenda of the July 14 Pakistan-
India summit. This was stated by Oil and Natural Resources Minister 
Usman Aminuddin.

The minister said the project should benefit Pakistan by providing 
transit fees and make available an ability to buy gas if the 
country ran short of supplies, already insufficient to meet demand 
without opening up the new fields.

Mr Aminuddin referred to privatization plans and said nine assets 
belonging to the Oil and Gas Development Corporation would be put 
to auction on July 23. The Pakistan State Oil Corporation and the 
OGDC were also earmarked for privatization in the first quarter of 
next year.

The proposed overall privatization program is estimated at $3 
billion.

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20010701
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Musharraf, Vajpayee may resume talks in NY
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By Masood Haider

NEW YORK, June 30: President Pervez Musharraf and the Indian Prime 
Minister Atal Behari Vajpayee are expected to meet on the sidelines 
of the United Nations General Assembly session in September as an 
extension of their Agra parleys.

South Asian experts, think tanks and officials here said "if the 
outcome of Agra talks is positive and show promise of developing 
into a substantive process then the meeting in New York between the 
two leaders and the officials from both sides would be a natural 
continuation of the process."

A United Nations official said on Friday: "We would welcome any 
bilateral meetings between the Indian and Pakistani leaders in New 
York if they so wish."

Many experts here point out that with the US pressure on both 
countries to sign Comprehensive Test Ban Treaty (CTBT) abating the 
Agra talks between Vajpayee and Musharraf may lead to an agreement 
between the two sides on confidence-building measures in the 
nuclear and conventional fields. It could also lead to a no-war 
pact between the two nations.

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20010706
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PML to challenge Tarar's removal
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Staff Reporter

ISLAMABAD, July 5: The Pakistan Muslim League (N) has decided to 
challenge the assumption of President's office by Gen Pervez 
Musharraf in the Supreme Court.

The central executive committee of the party, which met here under 
the chairmanship of Raja Zafarul Haq, also constituted a committee 
of lawyers to prepare a case for challenging the removal of Rafique 
Tarar and assumption of President's office by Gen Musharraf.

The CEC meeting, which was attended by 44 members, also constituted 
a mobilization and policy committee to prepare party manifesto and 
gear up party work at the grass roots level.

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20010703
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Sajjad opposes role for army
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Staff Correspondent

NAWABSHAH, July 2: Pakistan was made by the people and not by the 
army and it is the right of the people of Pakistan to rule the 
country, said Syed Sajjad Ali Shah retired chief justice of 
Pakistan.

He said that democracy had suffered greatly at the hands of 
politicians. In my time, I always tried that law must be the top 
priority, and no person, be he or she the prime minister of 
Pakistan, is above the law, said Mr Shah. He said that if judiciary 
is allowed to work at its own free will there will be democracy, 
and if the judiciary is pressurized than no government can be 
successful.

He said that the decisions being taken by the government are 
illegal. The army has no right to rule over the country. He said 
that general elections should be announced as soon as possible or a 
national government should be made.

He said that the IMF and the World Bank were ruling the country. 
Every day a new tax is being implemented on the nation.

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20010703
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CII chief apprehensive of delay in Riba-free economy 
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By Ahmed Hassan

ISLAMABAD July 2: Council of Islamic Ideology (CII) chairman Dr S. 
M. Zaman on Monday was apprehensive about the supreme court's one-
year extension given to the government for the introduction of 
Riba-(interest) free economy. He feared that if sustainable efforts 
were not made this time could also elapse.

Talking to Dawn on the CII stance on the changeover to an interest-
free economic order, Mr Zaman said, it was not a simple 
implementation by decree, but involved much more, like preparing 
the people for the new system, and address every aspect of the 
matter.

He said the supreme court's appellate bench had provided a road map 
on the basis of the CII recommendations which if implemented would 
have eased the task of transformation of economy into the Islamic 
mode.

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20010706
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CE bans trade union activities in PIA
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By Rafaqat Ali

ISLAMABAD, July 5: Chief Executive Gen Pervez Musharraf banned all 
kinds of trade union activities in the Pakistan International 
Airlines Corporation (PIAC) with immediate effect, and empowered 
the management to sack any employee.

An order called PIAC (Suspension of Trade Unions and Existing 
Agreements) Order 2001, was passed by the Chief Executive, 
suspending all trade union activities in the organization.

All agreements, awards and settlements between the PIAC and trade 
unions were also suspended. The order further said that during the 
period of suspension of existing agreements, awards and 
settlements, the Board of Directors of the PIAC may, if it deemed 
expedient, prescribe fresh terms and conditions of services of the 
employees, officers and advisers of the Corporation in 
substitution, or partial modification, of the existing agreements, 
awards and settlements.

The order has empowered the management of PIAC to retire or sack 
any person from its service after giving him an opportunity of 
being heard.

The order of retirement or termination from the PIAC service would 
be challengeable in the Services Tribunal. Orders of the Services 
Tribunal are challengeable in the Supreme Court.

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20010704
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Military training in Madaris to be banned: Law being amended
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By Rafaqat Ali

ISLAMABAD, July 3: The government has decided to amend the anti-
terrorism law under which imparting and receiving military training 
in religious institutions will be an offence punishable with a 
maximum of 10 years imprisonment, Dawn learnt from official 
sources.

The anti-terrorism law, which is under a complete review of the 
military government as it has failed to curb terrorism, can be 
promulgated in the amended shape within days.

Sources said the government had drafted the law keeping in view the 
activities of two sectarian groups and an ethnic party, but the law 
could also be enforced on Jihadi organizations at an "appropriate 
time."

According to law, the interior ministry would keep a record of the 
religious and political organizations, and the government would ban 
an organization if sufficient material was found against it.

The government, under the law, would have power for sealing the 
office of an organization and freezing its accounts. All 
literature, posters, banners and other things which could be used 
for fanning sectarianism, would also be seized.

The religious parties under watch would be required to disclose 
their sources of funding by submitting accounts of their income and 
expenditure.

The followers of a party would expose themselves to law if they 
solicited support for an organization banned under the anti-
terrorism law.

A police officer would have the authority to arrest a member of the 
banned organization without any warrant, if he had reasonable 
grounds to believe that the person was guilty of an offence 
punishable under the anti-terrorism law.

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20010704
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CII endorses law against terrorism with reservations
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Staff Reporter

ISLAMABAD, July 3: The Council of Islamic Ideology, while endorsing 
the proposed draft anti-terrorism ordinance referred to it by the 
interior ministry has drawn a line between term sectarian-based 
terrorism and the jehadi groups activities.

Chairman CII Dr S.M. Zaman said in opinion of the CII, a line has 
to be drawn while dealing with the incidents of violence by one 
group against others on sectarian grounds and the groups of 
mujahideen who were sacrificing their lives fighting against their 
enemy and thereby performing "farze kifaya" on behalf of entire 
Muslim ummah.

Dr Zaman said the council was clear on recommendations of banning 
sectarian organizations which were shedding blood of others on the 
basis of sectarianism but it can not endorse restrictions on those 
organizations who were working day and night in duty of jehad on 
behalf of entire Islamic society. He said, they (jehadis) were 
doing their religious duty whether they were fighting in Kashmir or 
anywhere else and they can not be banned.

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20010703
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Islamic council wants to study draft police law
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By Ahmed Hassan

ISLAMABAD July 2: The Council of Islamic Ideology (CII) has sought 
the draft police reforms law which all the four provinces have 
already rejected, informed sources said.

Provinces recently returned the proposed draft police reforms law 
(amendment to 1861 police act) on the grounds that enforcement of 
the law by the federal government would entail encroachment on the 
provincial autonomy.

The council has now sought the draft for its review to determine 
merit of being in accordance with Islamic injunctions or not.

The draft act, proposed to replace 1861 police act, comprises 107 
pages, which the National Reconstruction Bureau (NRB) has prepared 
for its unified enactment by all the four provinces under the new 
devolution plan.

Another objection on the act has been raised on the ground that it 
gives the police magisterial powers, which was against the demand 
of judiciary executive separation.

The CII has decided to review and provide its expert opinion on the 
proposed reforms act to make it in conformity with the Islamic 
principles of justice and service to the fellow human beings, 
sources added.

It is worth mentioning that the CII has already forwarded its 
recommendations on amendment to the Pakistan Penal Code and CRPC to 
make them acceptable for an Islamic state. 

The draft law is now under consideration by the law ministry, which 
after vetting, will present it to the federal cabinet for final 
approval.

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20010701
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Law ministry rejects 10 draft laws
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By Nasir Iqbal

ISLAMABAD, June 30: The law ministry has rejected 10 laws that 
health ministry was planning to introduce for improving health 
conditions in hospitals and controlling mushroom growth of low 
quality private medical colleges. The draft laws have been turned 
down with a direction to resubmit these after removing certain 
lacunas and seeking further opinion from different stake holders.

A highly placed source in the law ministry told Dawn that the 
health ministry had submitted 10 draft laws, involving restrictions 
on different medical practices, before the law ministry for vetting 
about four months ago.

After going through the laws, the law ministry discovered some 
weaknesses, besides it also received recommendations from different 
organizations. Subsequently the ministry returned the drafts with a 
direction to improve them by seeking further opinion from different 
sections of the society and stake holders after widely circulating 
these.

The objective behind these laws was to improve quality of medical 
education by regulating the private medical education institutions 
and regulation of hospitals, clinics and clinical laboratories in 
the private sector.

After vetting by the law ministry, these draft laws would have to 
be placed for the approval of the cabinet. After the final approval 
of the president, these laws have to be promulgated as an 
ordinance.

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20010707
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MC poised to form AJK govt
-------------------------------------------------------------------
MIRPUR, July 6: The stage is set for All Jammu & Kashmir Muslim 
Conference to form government in Azad Kashmir as unofficial results 
indicate it to have gained a majority in the AJK Legislative 
Assembly elections, defeating its nearest rival, the AJK branch of 
Pakistan Peoples Party.

The results of almost all the 40 electoral constituencies of the 
AJK legislature including 28 of AJK and 12 of the refugees of 
occupied Jammu and Kashmir living in Pakistan have been 
unofficially declared by the AJK Election Commission.

According to these, the AJK Muslim Conference bagged 21 seats, the 
ruling PPP Azad Kashmir 11, independents 3 and Pakistan Muslim 
League Azad Kashmir headed by Major Gen (retd) Hayat Khan grabbed 
only 1 seat.

The heads of both the major rival political parties, the Muslim 
Conference chief Sardar Mohammad Abdul Qayyum Khan and the 
incumbent PM and ruling PPP AJK chief Barrister Sultan Mahmood 
Chaudhry have emerged as winners, according to the preliminary 
results reaching thus far.

The Muslim Conference is believed to be in a position to form the 
new government without having to woo any other elected legislator.-
APP

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20010701
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AJK cabinet dissolved 
-------------------------------------------------------------------
Tariq Naqash

MUZAFFARABAD, June 30: AJK Prime Minister Barrister Sultan Mehmood 
Chaudhry dissolved his cabinet following accusation by the 
opposition that members of the cabinet were misusing their official 
position prior to the elections to AJK Legislatively Assembly.

The cabinet was dissolved in exercise of his powers under section 
14 (3) as mentioned in the AJK's interim constitution. Later a 
notification to this effect was issued by the S&GAD.

The members of the dissolved cabinet included Sahibzada Mohammad 
Ishaq Zafar, Sardar Akhtar Hussain Rabbani, Chaudhry Ali Mohammad 
Chacha, Sardar Mohammad Ashraf, Deevan Ghulam Mohiuddin and Haji 
Javed Akhtar and (in-charge minister) Chaudhry Mohammad Rasheed.

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20010706
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Afghan DPs start leaving for home: NWFP govt sticks to stand
-------------------------------------------------------------------
By Mohammad Riaz and Intikhab Amir

PESHAWAR July 5:The first caravan of 41 families, comprising 200 
Afghan refugees, left the Nasirbagh camp for their native towns.

The representatives of the UNHCR, and Commissionerate for Afghan 
Refugees (CAR) supervised the voluntary repatriation. Each family 
was provided with Rs6,000, a large tent and 120kg of wheat flour 
for their journey to Kabul. As the families vacated their quarters, 
personnel from various civic agencies cleared off the land.

The government had set June 30 as deadline for the eviction of 
120,000 Afghan refugees, occupying the land allotted for the Regi 
Lalma Housing Scheme. But, the refugees' elders held a Jirga and 
refused to vacate the land.

Last week, the International Council of Voluntary NGOs, a Geneva-
based alliance of NGOs, criticized the repatriation of refugees 
from Nasirbagh. The UNHCR also expressed dismay over the deadline.

The UNHCR, who has been advocating for an indefinite stay of 
refugees, signed an agreement with CAR on June 11, allowing 
refugees to stay for the next three months in the Nasirbagh camp. 
NWFP Governor Syed Iftikhar Hussain Shah not only rejected the 
agreement, but also ordered the suspension of the official who had 
signed the agreement with the UNHCR.

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20010702
-------------------------------------------------------------------
Jirga wants Nasir Bagh refugee camp vacated
-------------------------------------------------------------------
Bureau Report

PESHAWAR, July 1: Following refusal by the NWFP government to give 
extension of residence to the inmates of Nasir Bagh camp, a 50-
member representative Jirga of Afghan refugees decided that the 
camp would be vacated at the earliest.

The Jirga called upon the Pakistan government, Taliban authorities 
and the United Nations High Commissioner for Refugees (UNHCR) to 
make arrangements for repatriation and provide financial and food 
assistance to the refugees. The Jirga members also asked the UNHCR 
to set up a verification centre at Takhta Baig (Khyber Agency), 
where the refugees would report before repatriation.

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20010707
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Musharraf lacks mandate: Benazir
-------------------------------------------------------------------
Monitoring desk

LONDON, July 6: Former prime minister Benazir Bhutto has said India 
was making a "colossal mistake" if it believed that President 
Pervez Musharraf was going to play peace card at the Agra summit 
and warned of a "backlash" after it as he lacked mandate to 
represent the country.

"This entire visit is geared to take pressure off from 
Afghanistan," Bhutto told Karan Thapar on BBC's 'Hardtalk Pakistan' 
program.

Bhutto, said "New Delhi is making a colossal mistake if it believed 
that General Musharraf is going to play a peace card to sustain 
himself in power. She said when Prime Minister Atal Behari Vajpayee 
undertook the Lahore initiative in February 1999, there was a 
backlash. "Musharraf can go to New Delhi but there will be a 
backlash," the former premier opined.

Cautioning India that any agreement reached during the summit would 
be "with a dictator", Ms Bhutto said Musharraf lacked the mandate 
to represent the country. Stating that Musharraf's visit to India 
was a "tactical move" by him, Ms Bhutto said army generals in power 
in Pakistan were under pressure on two counts, one being sanctions 
against Afghanistan. The other, she said, was to give an impression 
of "good guys" to the international community to stick to power.

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20010707
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Asif shifted to Karachi
-------------------------------------------------------------------
Staff Reporter

ISLAMABAD, July 6: Asif Ali Zardari, lodged in Pakistan Institute 
of Medical Sciences, was shifted to Karachi. No official word was 
available for his sudden shifting to Karachi. 

According to sources, Mr Zardari would be taken to Hyderabad, where 
he would be produced in the court of a sessions judge in the Alam 
Baloch murder case in which he is one of the accused.

Farooq H. Naek, counsel for Mr Zardari, told Dawn that he was 
totally unaware of the move. He said that according to his 
information, no date had been fixed for the hearing of the case in 
Hyderabad and that all cases pending against his client in Sindh 
had been adjourned indefinitely.

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20010705
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PBC issues notice to ex-minister
-------------------------------------------------------------------
By Rafaqat Ali

ISLAMABAD, July 4: The Pakistan Bar Council has issued notice to 
former law minister, Khalid Anwar, to explain his position within 
next fortnight, on the tapes scandal in which he was heard telling 
the presiding judge that prime minister was upset on delay in the 
conviction of Benazir Bhutto.

The other two characters of the episode - Justice (Retd) Rashid 
Aziz Khan and Justice (Retd) Malik Qayyum, had to resign after a 
finding by the seven-member bench of the Supreme Court that the 
judgment against the former prime minister, Benazir Bhutto and Asif 
Zardari, was the result of bias of the presiding judge against 
them.

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20010703
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Justice Rashid Aziz seeks retirement 
-------------------------------------------------------------------
By Rafaqat Ali 

ISLAMABAD, July 2: Justice Rashid Aziz Khan, judge of the supreme 
court, against whom disparaging remarks were made by the seven-
judge bench of the apex court on the appeals of Ms Benazir Bhutto-
Asif Zardari, sought early retirement.

Official sources confirmed that Justice Rashid Aziz has made a 
request under the supreme court judges (Leave, Pension, and 
Privileges) Order.

Justice Khan and Justice Malik Qayyum of LHC, were wire-tapped 
discussing the ongoing trial of Ms Benazir Bhutto. The supreme 
court bench, though did not accept the audio tapes, as evidence, 
reproduced certain portions of Justice Rashid Aziz's discussion in 
which Justice Khan was heard saying to Justice (retd) Qayyum that 
the prime minister (Nawaz Sharif) was not happy with him about the 
delay in the conviction of Ms Benazir Bhutto.

It was officially announced on Monday that President General Pervez 
Musharraf has accepted Justice Malik Mohammad Qayyum's request for 
early retirement. Justice Qayyum, the main character who had 
presided the bench which convicted Ms Bhutto and her husband in 
1999, had also sought early retirement.

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20010703
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Sukkur Express derails
-------------------------------------------------------------------
By Shamim Shamsi

SUKKUR, July 2: Several people, including women and children, were 
injured when the locomotive of the 7-Down Sukkur Express derailed 
late Monday night.

As the train moved from the Sukkur Railway Station and reached the 
outer signal its locomotive No 5034 derailed. Several people jumped 
out of the windows in panic and received minor injuries. The 
injured were given first aid by the relatives who had come to seem 
them off.

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20010702
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Depts to be relocated and merged in dist govt system
-------------------------------------------------------------------
Staff Reporter

ISLAMABAD, July 1: The number of provincial government departments 
will be reduced from 34 to 13 in the district government system. 
The departments under the district government are to be merged and 
relocated from the previously functioning divisional tiers in the 
provincial set-ups, according to informed sources.

The plan to merge, align and relocate the provincial departments is 
part of the draft Local Government Ordinance 2001, which suggests 
abolishing the divisional tiers.

The plan to decentralize the offices has been prepared by the 
National Reconstruction Bureau which, inter alia, provides that the 
respective governments may continue to use the titles of the 
offices in their rules of business. The financial and 
administrative authority of the departments will be decentralized 
to the district government, sources add.

The group of 13 offices into which the 34 departments are to be 
merged are: district coordination, agriculture, community 
development, education, finance and planning, health, information 
technology, law, literacy, magistracy, revenue and works and 
services.

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20010706
-------------------------------------------------------------------
Plea to put Saif's name on ECL
-------------------------------------------------------------------
Bureau Report 

PESHAWAR, July 5: An application was filed in the Peshawar High 
Court requesting the court to place the name of former senator 
Saifur Rehman on Exit Control List as a deal had reportedly been 
struck between him and the government to allow him to leave for 
Qatar.

The application was filed in a writ petition filed by a journalist 
Shahid Orakzai, requesting the court to issue directives for 
bringing back former Prime Minister Nawaz Sharif and his brother 
Shehbaz Sharif as, according to his claim, they were involved in 
the killing of his brother.

In his application, Mr Orakzai claimed that in the writ petition 
the high court had already issued notices to the federal and 
provincial governments on June 27 and had thereby invited their 
comments within 14 days. He stated that in the meanwhile the 
federal government had reportedly struck a deal with Saifur Rehman 
through NAB to allow him an exit from Pakistan to the State of 
Qatar.

The applicant claimed that like the ex-prime minister, what the ex-
senator is being made to pay in the plea-bargain is just peanuts.

The applicant added that the Crimes Branch Police, conducting 
investigation "at a snail's pace" was "too shy" to arrest the 
nominated killer of his brother because of his connections in the 
federal government hierarchy. He added that if allowed an exit from 
Pakistan, the accused could not be retrieved like former prime 
minister Nawaz Sharif and former chief minister of Punjab, Shehbaz 
Sharif, since he would not be under the control of the federal 
government and no other sovereign state would guarantee his 
movement. 

The applicant, Shahid Orakzai, has also requested the court to put 
the name of former member of National Assembly, Javed Piracha on 
the Exit Control List.

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20010704
-------------------------------------------------------------------
HRCP slams violation of election rules
-------------------------------------------------------------------
Bureau Report

PESHAWAR, July 3: The Human Rights Commission of Pakistan has 
expressed concern over mismanagement and violation of election 
rules during the fourth phase of local bodies elections across the 
country, and said that it sent out ominous signals regarding future 
elections.

In a press release, the secretary general of HRCP, Hina Jilani said 
that the reports pouring in from various parts of the country after 
the fourth phase of polls suggested serious flaws in the 
preparation and the implementation of election rules.

She said: "In many constituencies, especially in the NWFP, women 
were again prevented from voting, discrepancies in the voters lists 
available to polling agents and those used by election staff have 
been reported from many places, the unannounced shifting of polling 
stations disenfranchised minority voters in Karachi, and other 
flaws were also evident during voting on Monday."

Ms Jilani said, The election commission needs to take urgent note 
of these matters and to overcome the problems. New election must be 
ordered in cases where women were stopped from using their ballot. 
She maintained that a failure to do so would mean the same 
difficulties could arise during general elections, causing more 
serious problems.

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20010703
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Muttahida, Haqiqi reject election
-------------------------------------------------------------------
Staff Reporter

KARACHI, July 2: The convener of the Muttahida Qaumi Movement's 
coordination committee, Dr Imran Farooq, has criticized the two-
hour extension in the polling period in the local bodies elections 
and termed the decision as an "open fraud" by the government.

In a statement from London, Dr Imran said that the decision to 
extend polling hours without any reason was itself an indication 
that the government had accepted the fact that people expressed 
solidarity with Muttahida, boycotted the elections in Karachi and 
did not turn up to cast votes.

"Government extended the polling hours to show an increased turnout 
after getting the ballot box filled with fake votes," he added.

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20010703
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Discrepancies in electoral rolls
-------------------------------------------------------------------
Staff Reporter

KARACHI, July 2: The election rolls or lists of voters for the 
local bodies polls were found with many a Discrepancies.

When there were people complaining about the alleged omission of 
their names from the lists, the lists of various areas, 
particularly those in suburban areas, gave the impression as if 
they are doctored ones.

Though having the names and father's names, some of the lists were 
found without ID card numbers of voters. There were other lists 
having no details of both ID card and age of the voters. There were 
other lists that had sketchy or highly incomplete addresses on 
them. The columns about the age of the voter "age on Jan 1, 2000" 
showed the year of birth or year of issuance of ID card as latest 
as 1993. 

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20010707
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Judgment reserved in Marri case
-------------------------------------------------------------------
Staff Correspondent

QUETTA, July 6: A Special division bench of the Balochistan High 
Court has reserved its judgment on a petition filed by Nawab Khair 
Bukhsh Marri challenging the interim stay order granted by a single 
bench of the Balochistan High Court, disallowing the lower court to 
hear the bail applications of Mr Marri.

The Chief Justice of the Balochistan High Court, Mr Justice Raja 
Fayyaz Ahmed, had constituted the special bench for hearing the 
petition of Nawab Marri after his lawyers filed the petition 
against the interim stay ordered by single bench judge Justice 
Amanullah Khan Yasinzai.

The bench, comprising Mr Justice Fazalur Rehman and Mr Justice 
Ahmed Khan Lashari, took up the petition and heard the arguments of 
both sides. After hearing both the sides the bench reserved its 
judgment.

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20010701
-------------------------------------------------------------------
Shah Nawaz Junejo resigns from PPP
-------------------------------------------------------------------
Staff Correspondent

SANGHAR, June 30: Shah Nawaz Junejo's formal parting of ways with 
the PPP has changed the political scenario in Sanghar District.  
Former senator Shah Nawaz Junejo, who had been closely affiliated 
with the PPP and the Makhdoom family of Hala for many years, 
formally resigned from the party.

The observers said that he had practically left the party a long 
time ago and some differences were brewing between him and other 
party leaders in the district since many years. His defection has 
dealt a crippling blow to the PPP. Now the PPP was looking for some 
influential in the district. This may open the doors for the Jam 
family.

Many people raised eyebrows when Mr Junejo was given a Nazim's seat 
by Pir of Pagara but at the same time he kept a liaison with the 
PPP. So he was bluntly asked to make a decision because his dual 
policy was not acceptable to the PML (F).

He decided on Friday night that he would be parting ways with the 
PPP.

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20010702
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Ex-senator Khudadad Luk held for corruption
-------------------------------------------------------------------
Staff Correspondent

SARGODHA, July 1: Former senator Mehr Khudadad Luk was arrested by 
the Regional Accountability Bureau (RAB) on corruption charges. He 
was shifted to the Chamba House, Lahore. Sources said that Luk had 
been picked up in the National Industrial Finance Corporation 
financial scam of which he was the director.

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20010702
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16 new cases against ex-CM
-------------------------------------------------------------------
Staff Reporter

KARACHI, July 1: The Regional Accountability Bureau filed as many 
as 16 fresh references in the accountability courts against former 
chief minister of Sindh, Syed Abdullah Shah, all pertaining to 
illegal allotment of government land.

Besides the former chief minister, former provincial secretary of 
the land utilization department, Ramesh M. Udeshi, is also a co-
accused in all the 16 references.

The allotments of government land at throwaway prices caused a loss 
of more than Rs48 million to the state. The former chief minister 
has been accused of allotting land to 16 different beneficiaries in 
districts East and Malir.

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20010704
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New CBR chief
-------------------------------------------------------------------
Staff Reporter

ISLAMABAD, July 3: The federal government appointed Riaz Ahmad 
Malik chairman of the Central Board of Revenue (CBR). He has also 
been given charge of additional secretary (in charge) revenue 
division.

When contacted, CBR spokesman and member of tax policy wing Vakil 
Ahmed Khan said he (Mr Malik) was the senior most member of the 
board on the basis of which he was appointed chairman. He dispelled 
the impression that the former chairman had tendered his 
resignation due to pressure from any quarter.


BUSINESS & ECONOMY
20010706
-------------------------------------------------------------------
Govt under WTO pressure for import of banned items: minister
-------------------------------------------------------------------
Staff Reporter

ISLAMABAD, July 5: The government is facing mounting pressure from 
the World Trade Organisation (WTO) to allow import of banned items 
in the country. Minister for Commerce Razak Dawood, told the 
participants that the WTO regime had to be implemented to end ban 
on imported items specially by 2005.

Informed sources said that the minister for commerce favoured the 
removal of the ban but later changed his mind when he was told that 
the local engineering industry would collapse if the WTO 
conditionalities were accepted by the government.

He agreed that some mechanism should be evolved to protect the 
local industry and that donors should be taken into confidence with 
a view to helping the local industry.

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20010705
-------------------------------------------------------------------
Pakistan needs $6bn aid, says WB report
-------------------------------------------------------------------
Staff Reporter

KARACHI, July 4: The World Bank's (WB) report Country Assistance 
Strategy (CAS) 2002-2004 which will set priorities and help 
determine level and type of funding to Pakistan, will be submitted 
to the bank's board for approval by December this year or Jan 2002, 
WB sources said.

The WB officials, visiting the country recently, have indicated 
that Islamabad needs a financial package of some $6 billion. The 
amount is estimated for three years that may have to be cobbled 
jointly by International Monetary Fund, World Bank and the Asian 
Development Bank.

The IMF is expected to provide about $2.5 billion under the Poverty 
Reduction and Growth Facility that may be more than matched by 
other IFIs. The flow of these funds would depend on the successful 
execution of the Fund's Stand By Arrangement (SBA) program.

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20010704
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WB admits its performance was not satisfactory
-------------------------------------------------------------------
By Khaleeq Kiani

ISLAMABAD, July 3: The World Bank's performance was 
"unsatisfactory" in lending, execution and supervision of over $3.1 
billion Private Sector Energy Development Project (PSEDP) that 
finally led to a crisis in the power sector and high energy rates 
in Pakistan.

This has been acknowledged by the World Bank itself in its 
"Implementation Completion Report (ICR)" made available to Dawn. 
The report not only criticized the active participation of its 
staff in negotiations and financial closing of independent power 
producers (IPPs), but noted that high-level senior management led 
to inadequate attention being given to dissenting views during the 
review process. 

These involvement's in "promoting specific transactions" also led, 
for the first time in the history of the World Bank, to internal 
investigations of allegations of corruption, said the report. "The 
very fact that the Bank has itself rated its performance as 
unsatisfactory from all aspects is sufficient reason to believe 
that the Bank's role was highly unsatisfactory."

This also calls for initiating an independent audit to take to task 
responsible individuals and institutions that played havoc with the 
whole Pakistani nation and got away with it. The nation is more 
than justified in claiming compensation for such a tragedy", said a 
senior WAPDA official.

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20010706
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Rs2bn e-govt plan approved
-------------------------------------------------------------------
Staff Reporter

ISLAMABAD, July 5: Federal Minister for Science and Technology Prof 
Atta-ur-Rahman approved the E-government master plan. According to 
a press release the plan, which will cost about Rs2 billion, will 
be completed in 12 quarters. An amount of Rs800 million will be 
spent during this year.

Prof Atta said that the object behind the introduction of E-
government plan is to improve efficiency of government departments 
and increase the level of transparency in all government 
transactions.

The minister informed that major components of the plan were 
Citizen on line, Development of Websites for 34 federal government 
ministries, electronic official gazette notification, electronic 
filing of tax returns, websites showing unrepealed statutes and 
case laws, development of websites of Pakistani missions abroad, 
electronic payment of utility bills, income tax, sales tax and 
other federal and provincial taxes etc.

It was decided that the entire work of E-government will be 
outsourced to local companies. The minister said that Pakistani 
information technology companies were fully capable of handling 
this project. The completion of the project will strengthen track 
record of Pakistani companies enabling them to get projects from 
the international market.

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20010704
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10 EoIs received for PTCL sell-off
-------------------------------------------------------------------
Staff Reporter

ISLAMABAD, July 3: The Privatization Commission has received 
expressions of interest (EoIs) from 10 companies for the 
privatization of Pakistan Telecommunication Company Limited (PTCL).

Ten parties that have submitted their EoIs, are Align Technologies, 
USA; Crescent Investment Management LLC, USA; Queste 
Communications, Australia; Commercial Network Limited; Khanjee 
Holding Incorporated, USA; Pakbell-Pacetel (Pvt) Limited, Pakistan; 
Yousif S.F. Al-Sabah, Kuwait; Nahayan Mabarak Al-Nahayan, Abu Dhabi 
Group, UAE; Saudi Oger Limited, Saudi Arabia; Orascom Telecom, 
Egypt.

The PTCL is the exclusive provider of basic telephony in Pakistan 
with over 3.2 million telephone lines in service. Besides providing 
fixed line, value added and other ancillary services, it owns 
subsidiaries that provide cellular and Internet services.

The Privatization Commission will now have consultation with the 
financial advisor to undertake a pre-qualification exercise to 
ensure that the strategic investor has the financial, managerial 
and technical capabilities to manage the company in a proficient 
manner. Pre-qualified parties will be allowed to conduct the due 
diligence of the company, which will be followed by a competitive 
and open bidding.

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20010702
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Merger of eight ministries shelved 20 institutions to be wound up
-------------------------------------------------------------------
By Khaleeq Kiani

ISLAMABAD, July 1: The federal government has decided to wind up 
around 20 institutions and departments but shelved the merger of 
some eight federal ministries and divisions for the time being.

Documents available with Dawn suggest that 40,000 federal 
government posts that had been lying vacant since the last three 
years would also be abolished in the new fiscal year. Earlier, the 
industries division was to be merged with commerce, railways with 
communications, economic affairs with finance, population welfare 
with health, narcotics control with interior and petroleum with 
power.

The merger of petroleum and natural resources and water and power 
ministries into a consolidated energy ministry would be considered 
after the privatization of Pakistan State Oil and Oil and Gas 
Development Company by the end of next year.

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20010702
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Meeting IMF conditionalities
-------------------------------------------------------------------
By Babar Naseem Khan

The new federal budget has been greeted in a mixed fashion by 
different quarters. Apparently it looks like a fairly worked out 
budget with a supply side orientation. It seems rather ambitious 
with all the concessions and tax breaks that it is offering. Where 
exactly will the government compensate this loss of revenue from, 
is anybody's guess.

However, it should be noted that this government is trying to set a 
new policy environment for the coming governments, even if the 
present policies and estimates have loopholes. In the past, the 
budget was anticipated apprehensively, people expecting hikes in 
taxes. Every year new taxes were introduced. The emphasis was on 
new taxation rather than on broadening of the tax base and refining 
of collection practices. 

The purpose of taxation as understood is redistribution of 
resources for public welfare. New taxation introduces further 
corruption and newer ways of tax evasion rather than promising 
better redistribution. So what everybody expects from the 
government is an efficient and transparent tax collection and 
redistribution.

As said earlier, a new policy environment is being set by this 
regime. Their policies must be analysed in the broader context 
where it should be realized that the present regime is in the 
office due to the dire need for economic stabilization and growth 
enhancment. And this is precisely their focus. The present regime 
believes that poverty alleviation takes place as a consequence of 
the said economic stabilization.

The present government, it seems, is being run by technocrats. 
Their present budget is said to have been dictated by, and 
formalized under the auspices of the International Monetary Fund 
(IMF) and the World Bank. But then, what else did one expect? 
Anybody thinking that the government can stand against the 
dictations of the IMF and other multilateral donors, tends to 
forget the grave reality that this interference is simply because 
of the amount of debt we unfortunately owe to these international 
financial institutions (IFIs).

Substituting the government with an ordinary firm in a hypothetical 
situation, where the supposed firm is also a debtor of the kind our 
government is to the IFIs, the attitude of the government seems 
quite relevant. 

A firm that owes such amounts of money to everybody who is somebody 
and does not intend to default, either pays or makes sure through 
its practices that it will pay in future. That's exactly what our 
successive governments have been doing. But limits and priorities 
have to be established. Assurances to the IFIs for compliance 
should be made keeping in view the dignity and integrity of the 
state. The allocation of 40 per cent of the budget to debt 
servicing speaks for itself. This shows that the government is 
cornered.

The authorities seem to be ignoring one of the major reasons of our 
ballooning debt liability, which is the volatility of the exchange 
rate. 

Every year due to depreciation of the rupee, foreign debt 
repayments in rupee terms increase many folds. What are the 
authorities thinking or doing about the stabilization of the value 
of the rupee? Or maybe the IMF and the World Bank are not concerned 
about it. 

The experience of developing countries over the past decades has 
shown that foreign financial assistance has got very little to do 
with the prevalent economic conditions and policies but has got 
everything to do with the international politics. It can be further 
asserted that this pipeline of foreign assistance is wet because of 
a good foreign policy rather than overall economic policies.

Nonetheless, there are some appreciable things in the budget. The 
foremost being that this time the policy-makers have cared to lend 
some ear to the demands of the stakeholders. Taxes and duties on 
the whole have been substantially reduced. This would help simplify 
the tax structure. After a gap of seven years, 50 per cent increase 
in the salaries of the government employees has been announced. 
Also, to give relief to pensioners, an increase of 5-15 per cent 
has been pledged. Use of statutory regulatory orders (SROs), that 
are traditionally responsible for mid-term regulatory duties, has 
been promised to be curtailed and one hopes that it remains so 
throughout the fiscal.

The construction industry has been given incentives that are 
welcoming. Duties on raw materials like iron, steel, construction 
machinery, etc. have been reduced. Fears are that this is simply a 
supply side measure and it will not help initiate demand for such 
activity. But keeping in view the massive public projects that the 
government has in mind, it will help initiate demand too. 

The reason for this optimism is that investment by private sector 
has mostly been initiated after investments made by the public 
sector. Moreover, such mega infrastructure projects always bring a 
swing in the local economy, although it may not necessarily be a 
long one.

Our cement industry was facing high costs due to high fuel tariffs. 
It has been proposed that coal-fired units be installed in the 
cement industry and to facilitate this import duty has been slashed 
from 15-25 per cent to 5 per cent on imports of such units. Other 
industries that have been given concessions include transport, 
soap, chemical, shipbreaking, surgical instruments, light 
engineering, tyres and tubes, etc.

It has been recognized that small and medium enterprises (SMEs) 
provide the required inputs to overall economic growth. The 
recognition comes in the form of concessions offered to the SMEs in 
terms of reduction in duties on a number of raw materials used by 
such industries. Through an appropriate amendment in law, the 
application of the minimum income tax of 0.5 per cent levied on 
individuals is being removed. This will also help the SMEs.

Productivity increase in agriculture through reduction of input 
costs has been proposed. Duties on fertilisers and pesticides have 
been reduced to 5 per cent.

According to the finance minister, a long-standing demand of the 
leasing industry had been the provision of first-year allowance 
available to all companies owning capital goods. This facility will 
now be available to the leasing companies also in order to 
encourage leasing activity in the country.

Therefore, the budget seems to be business-oriented. Pressing 
demands of major industries have been listened to and an effort has 
been made to fulfill the same. However, the authorities turned a 
blind eye towards some major impediments to development. The 
foremost relates to meager allocations for the public sector 
development program (PSDP) made annually during the last few years. 
The new budget is no exception, allocating merely Rs. 130 billion 
for this purpose. In view of the country's massive development 
needs the allocated amount can hardly make any significant 
difference.

A worrisome aspect of the problem is that even the meager 
allocations made for development expenditure are usually slashed 
every year to meet the budget deficit targets. 

In the outgoing year, the government reduced the PSDP allocation of 
Rs. 120 billion by Rs. 20 billion just for the same purpose. 
Meeting the deficit target at the cost of the PSDP is really 
frightful. Such slashing down of development expenditure initiates 
a vicious cycle that simply traps the economy. 

Under such circumstances, how does the government plan to have a 
balanced budget in the long run? Until and unless the economy 
invests in the desired infrastructure and human development, how 
can it prosper, let alone balancing out its budget?

The question is why after all do we really need to achieve this 
target against all odds. If the government is unable to cut down 
its defence expenditure in line with the revenue or its debt 
servicing liability, then it should simply fix a realistic budget 
deficit target that can be achieved. The development schemes must 
anyhow keep on functioning even if it contributes to the deficit. 
After all, we have been relying on deficit financing for quite a 
long time.

The PSDP allocation for the federal program is Rs. 75.2 billion, 
out of which the lion's share of 29.9 per cent is going to the 
ministry of water and power while the least to the health division, 
i. e. 3.3 per cent. Overall subsidies of Rs. 20 billion have been 
projected out of which approximately 50 per cent are meant for the 
KESC and WAPDA. 

 Now the performance of the water and power ministry is a known 
fact. Wapda has been asking for almost 10 per cent annual increase 
in tariff. And at the same time, Gen. Zulfikar Ali Khan, chairman 
of Wapda and the KESC, has admitted that the two years of army 
management of Wapda has failed to check the massive power theft and 
other irregularities. Brig. Shahid Mukhtar., managing director of 
the KESC, has said that 60 per cent of the power used in posh areas 
of Karachi is stolen, while there has been no real count of the 
kundas used in the sprawling 'kutchi abadis' of Karachi. 

The continuing dispute over the water share amongst the provinces 
also provides an ample proof of the performance of the said 
ministry. This being their performance, one wonders what this 
further huge allocation is meant for?

The law and order situation prevalent in the society is not hidden 
from anyone. A handful of people with personal motives can bring 
Karachi's business activity to a grinding halt. Gen. Musharraf 
advises the people of Karachi to be brave enough and not to be 
blackmailed by these trouble-makers. But under the circumstances, 
his advice seems to be irrelevant. It is the prime responsibility 
of the state to provide security to its citizens especially its 
business community. In case of Karachi, the government has failed 
miserably in this regard.

Let us hope that the government still meets its ambitious revenue 
targets. If it fails in this task we will be facing another drastic 
cut in the development expenditure. 

Our nation is used to the SROs and mini-budgets and one never knows 
what promise would be revoked and when. The finance minister has 
promised that SROs will not be issued anymore. Let us keep our 
fingers crossed and our hopes high.

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20010702
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Investors worried over future share business outlook
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By Muhammad Aslam

The KSE 100-share index managed to recover 14 points at 1,366.44 
but it failed to breach through the barrier of 1,400 points as 
widely speculated by analysts.

Nestle MilkPak, Rafhan Maize, were leading among them, which raised 
the values of their shares, up by Rs14.90 and 34.50, respectively 
but without matching volumes. They were followed by Feroxsons Lab, 
Bannu Woollen, IGI Insurance, Lakson Tobacco, Shell Pakistan, H.M. 
Ismail Textiles and some others for identical reasons.

Broader market performed well, major gainers being Pakistan 
Oilfields, Glaxo-Welcome, Lever Brothers, Treet Corporation and BOC 
Pakistan, finishing with good gains. Other good gainers were led by 
Universal Insurance, Amin Spinning, Gharibwal Cement, Abbott Lab, 
Knoll Pharma, and Cherat Paper.

Losses on the other hand were fractional barring Trust Bank, 
Paramount Spinning, Prudential Bank, Crescent Steel, Pak Elektron, 
Pioneer Cables and Century Paper.  The largest fall of Rs6 was 
noted in Shams Textiles, which was quoted spot to forestall further 
fall in its share value.

Trading volume further shrank to 247m shares from 420m shares a 
week earlier, reflecting the general lack of interest both from the 
speculators and institutional traders.

PSO led the list of most actives but this time on the higher side, 
thanks to the active short-covering at the lower levels followed by 
PTCL, Hub-Power, Fauji Fertiliser, FFC-Jordan on reports of 
expected announcement of the new fertiliser policy and tariffs.

Other actives included ICI Pakistan, Engro Chemical, Dewan Salman, 
WorldCall, MCB, Sui Northern, Lucky Cement, Knoll Pharma, Bank of 
Punjab and several others.

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20010704
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Exchange cos to replace money changers
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Staff Reporter

KARACHI, July 3: Money exchange companies may replace private money 
changers within a year. A committee headed by Executive Director of 
State Bank Farhat Saeed will frame by-laws for these companies.

SBP officials say SBP is going to replace more than 400 money 
changers with much lesser number of money exchange companies with 
the hope that it would increase the net inflow of foreign exchange 
into the country.

Meanwhile a press release issued by FAP said that the issue of 
recent decline of the rupee in the inter-bank market came under 
discussion at the meeting between FAP and SBP governor. It said 
that FAP members were of the view that the central bank should keep 
the rupee stable in inter-bank market to stop the rupee from 
falling in kerb market. The release said FAP sought permission from 
the State Bank for its members to carry foreign currencies abroad 
for selling with the condition to bring in the equivalent amount in 
US dollars under the previous system.

A couple of months ago the State Bank stopped money changers from 
taking away foreign currency abroad for selling on the ground that 
money changers were not bringing back the equivalent amount in 
dollars. Instead the central bank entrusted the state- run National 
Bank with this job - much to the chagrin of money changers.

The release said money changers should be allowed to compete with 
NBP.

FAP members also proposed at the meeting that people should be 
encouraged to open foreign currency accounts to keep therein the 
dollars they had purchased from the open market. They suggested 
that CBR should not investigate the source of income from the 
holders of these accounts adding if the proposal was implemented 
Pakistan would generate $5-$6 billion.

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20010707
-------------------------------------------------------------------
KSE 100-share index sheds another 14.43 points
-------------------------------------------------------------------
Staff Reporter

KARACHI, July 06: The KSE 100-share index fell further by 14.43 
points at 1,306.29 as compared to 1,320.72 a day earlier owing to 
the weakness of the leading base shares including PTCL, Hubco and 
others.

Minus signs again dominated the list, major losers being Shell 
Pakistan, Dawood Hercules, Atlas Lease and Javed Omer, falling by 
Rs.2.15 to 2.70 followed by Adamjee Insurance, General Tyre, Engro 
Chemical, EFU General, Crescent Bank and Highnoon Lab, off one 
rupee to Rs.1.50.

Leading gainers were led by Ghandhara Diesel, Lever Brothers, 
Abbott Lab, Janana De Malucho Textiles, Bolan Casting, Glaxo-
Wellcome Business Insurance and Nazir Cotton, which posted gains 
ranging from one rupee to Rs.5.50.

Trading volume fell to 49m shares from the previous 88m shares as 
losers held a strong lead over the gainers at 118 to 42, out of 211 
actives, with 51 shares holding on to the last levels.

Hubco again led the list of actives, off 40 paisa at Rs.17.80 on 
10m shares followed by PTCL, lower 25 paisa at Rs.16.95 on 10m 
shares, PSO, up 10 paisa at Rs.128.35 on 7m shares, Adamjee 
Insurance, off Rs.1.55 at Rs.50.45 on 4m shares and Engro Chemical, 
off Rs.1.50 at Rs.52.50 on 3m shares.

Other actives were led by ICI Pakistan, easy 20 paisa on 2.535m 
share followed by MCB, lower 30 paisa on 1.988m shares, Sui 
Northern, lower 15 paisa on 1.374m shares, World Call, off 25 paisa 
on 1.334m shares and Fauji Fertilizer, lower 25 paisa on 1.180m 
shares.

DEFAULTER COMPANIES: Shares of five companies came in for trading, 
most active among them being Automotive Battery, lower 20 paisa at 
Rs.3.05 on 6,000 shares followed by Allied Motors, unchanged at 
Rs.1.80 on 3,000 shares and Colony Textiles also unchanged at 
Rs.8.25 on 2,000 shares.

FORWARD COUNTER: All the six shares listed on the forward counter 
came in for renewed selling and finished further shaded under the 
lead of Dewan Salman, which was quoted lower by 65 paisa at 
Rs.16.25 on 39,500 contracts followed by PSO and Ibrahim Fibre, off 
35 paisa each at Rs.128.50 13.80 respectively on 60,000 and 13,000 
contracts.

Hub Power again proved the most active speculative scrip, lower 30 
paisa at Rs.18.20 on 0.190m shares and MCB was off 20 paisa at 
Rs.23.25 on 70,500 contracts. Hubco hit the highest at Rs.18.20 at 
which level it closed, while PSO rose as higher as Rs.128.90 before 
late selling brought it down to close at Rs.128.50. Sui Northern 
was traded at the last rate of Rs.9.40, which was also the day's 
lowest and the highest on 2,500 contracts.

Back to the top
EDITORIALS & FEATURES
20010701
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Dastur-an-Dastur
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By Ardeshir Cowasjee

His rank and style was grandiose: Asho Dastur-an-Dastur Shams-ul-
Ulema Dastur Doctor Maneckji Nusserwanji Dhalla, High Priest of the 
Parsis of Sindh, Punjab, Balochistan and the North West Frontier 
Provinces, but to his flock he was just their 'Dasturjee', as he 
was known with affection and reverence.

He was born in Surat on September 27, 1875, and he died in Karachi 
on May 25, 1956. We recently commemorated his 81st death 
anniversary.

He never told us his word was law, for all to observe and obey, for 
his wisdom and learning were never challenged. He was not orthodox 
or dogmatic, as is the case with all truly learned scholars, so he 
was a tolerant man who preached tolerance.

He had studied Iranian languages at the Sir Jamshedji Jeejeebhoy 
Madressah in Bombay where he met and consorted with Dadabhoy 
Naoroji, Sir Phirozeshah Mehta, Sir Dinshaw Watcha, Sir Dinshaw 
Mulla and the Tatas. He then went on to further study Avesta and 
his religion at the Columbia University, New York, under Professor 
L Jackson, where he was awarded the degree of Master of Arts in 
1906 and a Ph.D. in 1908.

In 1929, his university invited him to be with them to celebrate 
the 175th anniversary of its founding during the reign of King 
George III of England as the King's College. It was an occasion on 
which the university honoured its outstanding alumni, those who had 
contributed to the furtherance of the knowledge of the arts and 
sciences, by awarding to them honorary degrees. Dhalla was awarded 
a D.Litt.

He was a voracious reader and the library at Columbia was amply 
equipped with volumes on the Avesta and Pahelvi languages, and on 
Zoroastrianism. During his lifetime he visited Columbia five times 
to read and to study. A man of meagre means, he had no problem with 
being helped and supported by members of his community who chipped 
in with contributions towards his travel and living expenses to and 
in the US.

My maternal grandmother, Dinbano Rustomjee H J Rustomjee, was 
loving, liberal and loveable, whereas my paternal grandmother, 
Aimai Fakirjee Cowasjee, in whose house we grew up was relatively 
orthodox and severe - she had to be strict as she ruled over a 
rebellious crew. Both were literate and could read and write 
English. Aimai used to harangue Dasturjee on the subject of smoking 
and insist that in his preachings to the community he inform them 
that Zarathustra had firmly laid it down that his followers were 
not to indulge in the use of tobacco. Dasturjee would patiently 
explain to her, 'My dear Sister, Zarathushtra lived and died long 
before Raleigh found and brought tobacco back to England from 
America.'

Tolerance is what we must have in Pakistan, and tolerance is what 
we must all preach. In one of Dhalla's books, 'Homage Unto Ahura 
Mazda' (Nemo Ahurai Mazdai), is his essay 'Let none nurse 
intolerance', which needs to be read and digested:

"Intolerance and bigotry and dogmatism are the bitterest enemies of 
religion upon earth. They make religion a tyrant, a persecutor, a 
veritable daeva, the demoniac perversion of angelic religion.

"All bigotry is blind and stupid and savage. Sectarian bigotry is 
as bad as inter-religious bigotry. Bigotry stifles reason and the 
bigot, in his frenzy, is out to force all to believe what he 
believes.

"All religions come from one and the only God, who makes himself 
known by many a name. From the same source, like the tributaries of 
a river, they flow. All religions make man equally good upon earth 
and with equal safety do they conduct his soul to heaven. One alone 
is truth and all religions teach this truth, for religion itself is 
truth.

"All open their hearts to the same God. All unbosom their hearts to 
the same God. All seek refuge in the same God. All concentrate 
their thoughts on the same God. All seek fellowship with the same 
God. All yearn to be united unto the same God. All commend their 
souls into the hands of the same God. Man has no right to demand 
that his neighbour shall address God after his pattern and shall 
pray in his own way and worship according to his liking and 
sacrifice unto God in the manner he does.

"No thinking man's own idea of God and religion, at all times and 
in all conditions of life, is ever the same. For everybody's views 
on religion, then, it is not possible ever to be alike. Monotonous 
would our world become, if all thought equally and in the same way 
without ever differing in religious beliefs and practices from one 
another. Nature shines in her luxuriant glory because of the wide 
variety of her form and colour and beauty. So do there bloom and 
blossom in the garden of the spirit pervading mankind, foliage and 
flowers of all shades and grades of devotion and religious 
emotions.

"Teach me, my God, to see that I have no right to impose my own way 
of thinking upon others. Teach me to acknowledge and honour the 
right of all to pray and worship and sacrifice in their own way. 
Let me not be a purist and regard those as irreligious who regard 
not formalism. Keep me free from sectarian spirit, and give me 
strength to root out from my heart bigotry and fanatic zeal. Teach 
me to discern true religion from religiosity. Fill my mind and 
heart, Ahura Mazda, with the spirit of toleration."

The people of India and Pakistan, in particular the leaders, all 
tend to be intolerant and over the last 54 years have done nothing 
to dampen strife. Now, both countries are at an important crossroad 
in their existence. India's leader, Atal Behari Vajpayee, is a 
democratically elected prime minister whereas our man, Pervez 
Musharraf, rode in on horseback. But it matters little how he came 
in. He enjoys the support of the people, including the 
obscurantists and the educated. From what one gathers in this age 
of technology and cyberspace, both Vajpayee and Musharraf are 
striving for peace, both are aware that their countries are 
inhabited by a vast majority of the poverty-stricken, the hungry 
and illiterate. It is their interests that must prevail. What is of 
importance is that discerning men on both sides of the border, all 
who have a voice of any kind, must help both leaders in their quest 
to reduce strife and hatred and bring in peace which only can bring 
in and nurture prosperity.

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20010706
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Revisiting the past 
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By Ayaz Amir

I have been watching elections since 1964 - the year the Field 
Marshal and Ms Jinnah squared off against each other - and, in one 
form or the other, participating in them since I came of age. This 
record is no testimonial to my civic-mindedness. It only reflects 
my rural origins.

In Islamabad and the posher parts of Pakistan elections are an 
irrelevance. They have nothing to do with the lives of ordinary 
people. In the other Pakistan, comprising the stretching hinterland 
and the congested cities, elections are a necessity. Anyone 
aspiring to local self-importance can ignore them only at his 
peril. Ignore the political process - regardless of what form it 
takes - and you count yourself out of local affairs.

The authors of the Devolution Plan say all this will change after 
their new system is ushered in. Power from the top will filter down 
to the grassroots enabling people to become masters of their own 
destiny. It's a beguiling thought but at odds with the reality of 
military rule. General Musharraf is not about to draw in his fangs. 
The brave new world he and his scientists are creating differs only 
in matters of detail from previous models. The substance is the 
same with elections and local councils only obscuring the real 
thing within.

Why hold elections at all? I have often wondered at their utility. 
They involve the mass of the people in an exercise both tortuous 
and painful. While raising exaggerated hopes, they confer no 
political sovereignty. Nor do they alter the contours of power, a 
lesson successive generations of Pakistanis learn at a cost which 
involves the loss of innocence and the onset of an all-pervasive 
cynicism.

In passing, note may be taken of one of the good things about the 
Devolution Plan. It wrests planning and development from the 
mandarins of the provincial capitals and brings these precious 
commodities to the districts. This is a step forward. But it is a 
far cry from the dispersal or distribution of power about which 
such a great song-and-dance is being made.

I don't know whether the Mansteins of the Reconstruction Bureau 
realise it but what they are offering the people of Pakistan is a 
fresh compact: sovereignty in local affairs in exchange for a 
distancing from national affairs. Which is a bit like the deal 
offered the Chinese people by the Chinese Communist Party: get rich 
and improve your living standards but don't question the Party's 
right to rule. The Chinese comrades have delivered on their 
promise. Can the Pakistani comrades do the same?

The one nagging fear about the new paths to local grandeeism being 
charted by the Devolution Plan has to do with the quality of the 
Nazims and the role of the police. If the nazims who will step into 
the executive shoes of the deputy commissioners start settling 
political scores we might as well start composing the obituary of 
the incoming order. A heavy responsibility will rest on the 
shoulders of the police. Will it stand up to this burden? More than 
the nazims it will be the police department which will help make or 
mar the new system.

One thing from my own observation I can put down in this regard. 
When Shahbaz Sharif as Punjab overlord proposed recruiting direct 
inspectors into the police force I as an MPA who was consulted 
strongly opposed the idea, arguing that inductees at the upper 
rungs of the ladder were a source of demoralisation for their 
colleagues below. The chief minister's argument was that the police 
had become so rotten that only shock therapy, and an immediate 
infusion of fresh blood, could help improve matters. I must confess 
that from what I have seen of direct inspectors in my own district, 
Punjab's erstwhile overlord was right and I wrong.

In my own Thana Nila the SHO is a direct inspector and while his 
inexperience can often be exasperating he is scrupulously honest, 
with not a whiff of scandal about him, and diligent in the 
performance of duty. He says "no" to me more often than I like, a 
fact which I keep bringing to the notice of the SSP, but most of 
his negatives, I find, are based on merit or, as I would like to 
think, ignorance, not dishonesty. More power to his tribe.

But to return to my theme, one general conclusion from the local 
elections the military's whiz-kids can safely draw. In Punjab, the 
powerhouse of Pakistan politics, the electoral strength of Nawaz 
Sharif's Muslim League is well on the way to being broken. 
Rawalpindi Division, the heart of the army's recruiting belt, was a 
Nawaz Sharif stronghold. As evidenced by the local election 
results, not any longer. With other factions coming to the fore the 
glue holding the Muslim League together is coming apart.

This is an interesting development. Political strength first came 
to the Muslim League through local elections ordained by General 
Zia. Now it is losing the same, and experiencing a gradual 
political meltdown, through local elections sponsored by another 
general. Those who live by the sword, die by the sword. Change 
sword to local elections and you have an epitaph for the Nawaz 
League.

But the fruit shed by this once powerful party has not fallen into 
the lap of the pro- Musharraf League led by Mian Azhar. The grief 
of the one has not translated into the strength of the other. As a 
rule local bigwigs have scored well where they have been strong on 
the ground. But there has been no wave favouring one party or the 
other. Gen Naqvi should be pleased. The depoliticization he and his 
fellow-generals sought, and which has been dear to the heart of 
every military ruler, is taking place.

The national press in this respect has got the picture wrong. In 
saying that the same political faces or the same political surnames 
have scored big, the metropolitan papers have missed the point. It 
is not local politicos, the kind who score big in local elections, 
whom the military dislikes. Organised politics, the life-blood of 
political parties, is what the military mind hates. For instance, 
what does it matter to Commander 10 Corps if PPP nominees have 
gained ground in Rawalpindi? As members of a rudderless party it 
will be hard for them to resist going over to the side of 
authority, whatever be the shape of that authority. Local 
councillors need funds for development. They cannot survive on 
principles alone.

The problem for the military is over the long-term. A closed 
political system, such as Ayub Khan's was and Musharraf's promises 
to be, breeds frustration and anger. The middle class, the motor of 
political thought and activity in most countries like Pakistan, 
feels left out. What is more, a closed political system also breeds 
cronyism and corruption. From Indonesia to Nigeria the most 
conspicuous feature of military regimes is the corruption which 
leaves their country dry. There is much talk of cleanness at the 
top of the Musharraf government. Wait till complacency sets in.

Military men don't admit it, perhaps they don't even understand it, 
but the great cyclical leaps in corruption we have had have all 
been under military regimes. Not because soldiers are more corrupt 
than civilians but because army rule, by destroying democracy, 
removes a check on administrative corruption. Yes, I can hear angry 
cries about the felonies of politicians. But a point lost on 
sophisticated urbanites is the check-and-balance role of any 
political system, no matter how corrupt. A myth beloved of generals 
is about the watchdog role of the military. Sooner than anyone 
realises the army becomes part of the problem.

What are the people left with? Another coffin of shattered dreams. 
When their anger breaks out, the system performs a cleansing act, 
removing the Ayub Khans and Suhartos but without touching the 
essentials. Another election is ordained, new alliances are made 
and the air is full of talk of a new beginning. New faces emerge - 
the Benazir Bhuttos and the Megawati Sukarnos - with whom the 
people identify their hopes. But nothing changes. Only the past re-
invents itself in fresh colours.

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20010707
-------------------------------------------------------------------
Sink or swim
-------------------------------------------------------------------
By Irfan Husain

The scenes from Seattle were reminiscent of the anti-Vietnam war 
protests that swept the United States in the sixties and early 
seventies and finally brought that conflict to an end.

Whatever the outcome of the WTO talks, one thing is certain: the 
official agenda has been successfully hijacked by the odd alliance 
of trade unionists, environmentalists, students and anarchists who 
briefly ruled the streets of Seattle. One group conspicuous by 
their absence were representatives of developing nations, although 
they will be the biggest losers if the US and the European Union 
get their way.

Indeed, ever since the World Trade Organization came into being in 
1995 as the successor to the General Agreement on Tariffs and Trade 
(GATT), there has been relative apathy in the Third World to the 
implications of the agreement signed by 130 members of the WTO. We 
have been particularly laggard in focusing on the key provisions of 
the agreement that affect Pakistan directly. Instead of 
coordinating with similarly placed countries, we have been locked 
in our sordid little world of politics and corruption. The result 
is a total lack of preparation in adjusting to a more open and 
liberal international trading system.

The implications of the Seattle talks are far-reaching and will 
touch the lives of hundreds of millions of people around the world. 
Consumers, farmers and manufacturers will all be affected to 
varying degrees. Unfortunately, developing countries have woken up 
to these coming changes rather late, thus failing to evolve a 
common platform and strategy for Seattle. Luckily for them, 
American protesters have taken up their cause.

So what has ignited the protests in Seattle? Basically, the WTO is 
different things to different groups. It offers vast opportunities 
to multinationals as well as efficient (and often subsidized) 
farmers, while spelling doom to inefficient manufacturers and small 
farmers. And it will deal a heavy blow to nations that turn a blind 
eye to child labour and indulge in gender discrimination as well 
environmental damage. In brief, countries like Pakistan will derive 
few benefits while standing to be the biggest losers from trade 
liberalization.

As custom duties head towards zero in most categories of goods by 
2005, our manufacturers will face increasing competition from 
imports that will be both cheaper and of better quality. Our 
farmers will be unable to compete with produce from Europe and 
America that is grown on huge, mechanized and massively subsidized 
farms. It is true that Pakistani customers will benefit from 
greater choice, lower prices and better quality. However, this 
increase in imports will result in higher trade deficits and a fall 
in the value of the rupee. Ultimately, the economy will come under 
intolerable strain as many manufacturers and farmers face ruin.

When the WTO came into being in 1995, member states had a decade to 
make the structural adjustments needed to bring their economies 
into line with the requirements of free trade. However, successive 
Pakistani governments since then remained blind to the need to gear 
up the economy, and our manufacturers, spoiled by decades of 
subsidies and official pampering, did not put in the investments 
and hard work necessary to increase efficiency and quality.

None of this is to suggest that trade liberalization is not a good 
thing. All things being equal, it brings about a better deal for 
the consumer and provides manufacturers a level playing field to 
compete on. But in real life, things are seldom equal. For years, 
multinationals have employed lawyers specializing in international 
trade to draft provisions that benefit them, and these clauses are 
then placed in the working papers of governments that spearhead the 
cause of these giant corporations. Manufacturers in developed 
countries are far more efficient than those in developing 
countries, and generally enjoy greater economies of scale. Farmers 
in the West are generally subsidized and produce food far in excess 
of national requirements; much of this excess is exported to the 
rest of the world at prices that small farmers elsewhere cannot 
match.

Before GATT and the WTO, countries protected their own interests 
through high tariff barriers and restrictive import policies. 
However, this will no longer be possible. For instance, the 
governments of Pakistan and India will not be able to restrict 
imports from each other without attracting severe penalties. 
Indeed, this policy of cutting our noses to spite our faces has 
always been incomprehensible: both nations prefer paying far higher 
prices in importing goods and services from the rest of the world 
rather than trading directly with each other.

According to Third World critics of the WTO agreements, the whole 
thing is a western conspiracy to further impoverish poor countries. 
But while we demand greater access and lower tariffs on our exports 
to the richer markets in the world, we are unwilling to grant 
similar access to their products. However, the fact remains that 
the present system of international trade is tilted in favour of 
the developed countries: currently, tariffs on imports from the 
least developed countries are 30% higher than on imports from 
developed nations. Indeed, according to an Oxfam estimate, trade 
barriers are costing developing countries up to $700 billion 
annually through lost exports.

International trade is now a far bigger factor in the global 
economy than it was fifty years ago, having increased fourteen 
times since 1950 to $6,500 billion in 1997. Twenty six per cent of 
the world economy now is directly linked to international trade as 
compared to 8% in 1950. Clearly, then, there is a growing need to 
regulate this burgeoning commerce and protect groups and countries 
unable to withstand the growing power of multinationals. However, 
there is a real danger of the WTO becoming a handmaiden of western 
interests, much as the United Nations has. The fact that developing 
nations have so far not played an active role in GATT and WTO 
negotiations is one reason they are in the very real danger of 
being marginalized even further in the world economy.

For Pakistan, the problem is that our politicians, planners and 
businessmen have still not grasped the opportunities and dangers of 
globalization. With a largely illiterate workforce, a poor work 
ethic, a ramshackle physical and social infrastructure, outmoded 
management and a corrupt bureaucracy, there is just no way we can 
compete in the global market without following protectionist 
policies. And these policies are about to be scrapped under the WTO 
agreement we are signatory to.

The name of the game now is 'sink or swim', and there is no 
indication that we are taking any swimming lessons.


SPORTS
20010702
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Saqlain stars for Surrey with six-wicket haul
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LONDON, July 1: Pakistan off-spinner Saqlain Mushtaq marked his 
return to county cricket by taking six for 89 for champions Surrey 
against title rivals Lancashire at The Oval.

His only real rival as the world's best off-spinner, Sri Lanka's 
Muttiah Muralitharan, had already taken five for 81 as Lancashire 
dismissed Surrey for 248 but Saqlain's efforts meant Lancashire 
only had a first innings lead of 28 on the second day.

Just as he had done in Pakistan's Second Test victory at 
Lancashire's Old Trafford ground, Saqlain was in the thick of 
engineering a collapse, the visitors declining from 110 without 
loss to 172 for six. But unlike England, Lancashire's tail wagged, 
the final four wickets adding another 104. Former England wicket-
keeper Warren Hegg was 74 not out.

Australian-born Jamie Haynes paid heavily for going back against 
Saqlain and was the Pakistan star first Championship wicket of the 
season, lbw for 57 from 111 balls including seven fours.

Lancashire were now 110 for one and Haynes' fellow opener and 
captain John Crawley, was next out, lbw for 43 playing no stroke 
against the sharp Martin Bicknell.

Wickets fell regularly with Saqlain getting Glenn Chapple caught at 
silly mid-off after the previous ball had been driven for six.

Surrey's Mark Ramprakash, who made 59 on Friday, had a day to 
remember as it was confirmed he had been recalled to the England 
Test side, albeit as cover for injured county colleague Graham 
Thorpe (calf).

The 31-year-old former captain of Surrey's arch-rivals Middlesex 
moved across the River Thames during the close season with the 
specific aim of reviving his Test career.

Elsewhere, Australian Darren Lehmann plundered another century for 
Yorkshire as they went on a run spree in their match against 
Leicestershire.

Lehmann, who was 35 not out overnight, scored 104 off 133 balls to 
become the third centurion of the innings following Michael Lumb 
(122) and Matthew Wood (102) on the first day of the division one 
game.

It was the first time for 26 years three Yorkshire batsmen had 
reached three figures in the same innings of a championship 
fixture.

Lehmann, who went into the game with a first-class average of 
75.62, struck 13 fours as he dominated a fourth wicket stand of 110 
in 30 overs with skipper David Byas (30).

Gary Fellows (34) and debutant Richard Dawson (37), who hit 21 off 
one over by former England pace bowler Phil DeFreitas, boosted 
leaders Yorkshire to exactly 500.

Third-placed Leicestershire were then dismissed for 174 at the 
close of the second day, their former paceman Steve Kirby doing the 
damage with six for 46, including three for 12 in his opening six-
over spell.

In the other division one match at Cardiff, all six of Glamorgan's 
top order hit half-centuries in a championship fixture for the 
first time since 1951.

Starting the day on 370 for three against Northamptonshire, the 
Welsh side reached 556 for seven declared with further half-
centuries from Michael Powell (86), Adrian Dale (54) and Robert 
Croft (93).

Bottom-of-the-table Northants closed on 116 for one, with Western 
Australia's Mike Hussey 53 not out.

Hampshire, second in division two, are well placed to force victory 
over struggling Derbyshire, who followed on 233 behind at 
Southampton.

Adrian Aymes (73) and Shaun Udal (81) broke a 104-year-old record 
for Hampshire's eighth wicket against Derbyshire by adding 130 
before the home side were dismissed for 383 in their first innings.

England left-arm paceman Alan Mullally and Zimbabwean all-rounder 
Neil Johnson took four wickets each as Derbyshire were shot out for 
140. They closed on 10 without loss in their second innings.

Worcestershire opening batsman Philip Weston drove home his side's 
advantage over Nottinghamshire by scoring an undefeated 185 on the 
second day at Worcester.

Leading by 88 on first innings, Worcestershire piled up 356 for 
eight to lead overall by 444 after Weston made his runs off 299 
balls with 31 boundaries.-AFP/Reuters

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20010703
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Pakistan hold Netherlands 2-2, clinch series 1-0
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Sports Reporter

KARACHI, July 2: Pakistan clinched the three-Test series 1-0 when 
they managed a 2-2 draw with the World and Olympic champions The 
Netherlands in the third hockey Test. The first Test had also ended 
in a 2-all stalemate, while Pakistan thrashed the Dutch 3-0 in the 
second Test, making it a must-win situation for the home side.

Pakistan's penalty corner specialist, Sohail Abbas, scored what was 
his 12th goal of the tour, to gain the lead off a short corner in 
the first half.

The Netherlands leveled before the half time hooter.

Atif Bashir once again put Pakistan in the driving seat, scoring in 
the second half. But the game ended in a deadlock after the Dutch 
netted an equaliser.

Pakistan had started their tour with 6-2 win and a 3-3 draw in the 
Tests against Spain in Barcelona, lost 4-2 to Germany in a one-off 
Test in Hamburg.

Pakistan, who finished second behind Germany in the four-nation 
tournament in Hamburg, salvaged a 1-1 draw with the Netherlands, 
were defeated by Germany 3-2, and beat South Korea 8-6.

Pakistan were beaten 2-1 by Belgium in Brussels in a one-off Test 
before they won the series against the Dutch.

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20010702
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Pakistan stun Netherlands
-------------------------------------------------------------------
Sports Reporter

KARACHI, July 1: Pakistan went 1-0 up in the three-Test hockey 
series when they outclassed world and Olympic champions The 
Netherlands 3-0 in the second Test at Utrecht.

The Pakistanis, who are on a 17-day trip to Europe, were held to a 
2-2 draw by the Netherlands in the first Test.

Pakistan's victory is the first against the Dutch during the tour. 
The game between the greenshirts and the Netherlands in the four-
nation tournament in Hamburg also ended in a one-all stalemate.

The Dutch received an early shock when striker Kashif Jawwad 
grabbed the lead for Pakistan in the ninth minute of the first 
half. Muddasir Ali helped his side forge 2-0 ahead with a field 
goal in the 20th minute.

Penalty corner executioner, Sohail Abbas, who had enabled the 
visitors draw in the first Test, scored off a penalty corner to 
complete Pakistan's tally in the 61st minute.

The hosts now face a must-win situation in the third and the last 
Test, which was scheduled for Sunday night. The team is expected to 
return on Wednesday.

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20010704
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India refuse to play against Pakistan in Dubai
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NEW DELHI, July 3: India turned down an invitation to play a field 
hockey series against Pakistan in Dubai early next year, saying it 
did not want a match-up on neutral soil. "If we can play against 
each other in either country, why should we go to a neutral venue?" 
said Indian Hockey Federation President Kunwar Pratap Singh Gill. 
"If we cannot play against each other in India or Pakistan, there 
is no point in playing in a third country," the Press Trust of 
India quoted Gill as saying.-AFP

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20010704
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PCB mum over Miandad as Bangladesh batting coach
-------------------------------------------------------------------
Sports Correspondent

LAHORE, July 3: Javed Miandad has not sought prior permission from 
the Pakistan Cricket Board (PCB) for his new assignment as batting 
coach of the Bangladesh cricket team.

The PCB has appointed Miandad as head of its newly formed 
management committee on domestic cricket, National Umpiring 
Council, rules and disciplinary affairs. The working of the 
committee, is likely to suffer due to his absence.

When asked to comment on the appointment of Miandad as batting 
coach for Bangladesh and the loss PCB would suffer, the PCB 
director Brig. Munawar Ahmad Rana failed to give any satisfactory 
answer but said Miandad was not a regular employee of the board and 
was an independent person in his own right.

It may be recalled that Miandad was removed as coach of Pakistan 
team on the pretext that he was needed in the PCB advisory council 
as stated by chairman Lt. Gen. Tauqir Zia.

The advisory council has been dissolved but Miandad was appointed 
as head of the management committee, setting aside the apprehension 
that the dual responsibilities of Miandad may hamper the smooth 
working of the committee.

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20010704
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Shokat leads Pakistan in Pro-Am Asia Cup
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KARACHI, July 3: Asian Games gold medalist Shokat Ali will lead a 
three -member Pakistan squad in the inaugural Pro-Am Asia Cup 
Snooker Championship being held in Bangkok from July 9 to 14, 
Pakistan Billiards and Snooker Association (PBSA) announced.

Shokat who is based in Manchester is ranked 49th in the world 
professional circuit, won the individual gold in 1998 Asian Games 
in Bangkok and as a result of his ranking Pakistan earned automatic 
qualification in the competition because of world ranking.

Muhammad Yousuf and Farhan Mirza are the other members of the team 
and Wahid Tawalwala will be the manager.

Nations having professionals ranked among the top 64 in the world 
made direct qualification in the event which included Hong Kong, 
Pakistan and hosts Thailand. The other five countries are China, 
India, Malaysia, Singapore and United Arab Emirates (UAE) which 
made the finals after qualifying rounds.

Teams have been drawn in two groups. Group 'A' comprised Hong Kong, 
Malaysia, UAE, Pakistan while Group 'B' consists of China, India, 
Singapore and Thailand.

Two top teams from each pool will qualify for the semi-finals.

The winners of tournament will get pound sterling 9000, runners-up 
will pocket 4500. Each of the participating cueist will get pound 
sterling 1000 as guarantee money.-APP

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20010706
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Ordinance on anvil to enforce National Sports Policy
-------------------------------------------------------------------
ISLAMABAD, July 5: An ordinance is in the process of legislation to 
enforce the National Sports Policy announced on April 15 this year. 
The ordinance, virtually to sound the death-knell to officials of 
several sports federations in the country, is likely to be 
promulgated later this year, probably just after Oct 6-15 SAF 
Games.

"The draft is currently with the Law Division and the process of 
legislation is to take next few months before it is laid before the 
President for formal promulgation," sources in the concerned 
ministries say.

The relevant provisions of the new national sports policy bar 
office-bearers of a sports organisation, including the Pakistan 
Olympic Association (POA), from holding more than two terms of four 
years each.

The policy also makes athletics and hockey as the mandatory sports 
in schools and colleges besides stressing the development of sports 
at the grass-roots levels of tehsils and districts.-APP

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