Pakistan - DAWN Wire Service

[Rizwan]

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D A W N W I R E S E R V I C E
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Week Ending : 25 July, 1996 Issue : 02/30
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(c) Pakistan Herald Publications (Pvt.) Ltd., Pakistan - 1996
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C O N T E N T S
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N A T I O N A L N E W S
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Afaq launches campaign for province
Four killed in Lahore airport bomb blast
Blast probe on, no clue in sight so far
10 injured in Sargodha explosion
Pakistan needs some time to respond to Indian talks offer: FO
æShift in Pakistan stand on CTBTÆ
137 held on way to training in Afghanistan
OPF to launch pension plan for expats
Corruption eating up SAP, say critics

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B U S I N E S S & E C O N O M Y
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Rupee drops to record low against dollar
Petroleum products prices reduced
The æcoloursÆ of corruption
How about export-led growth!
Disaster looming large over textile industry
Stocks fall across a broad front

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E D I T O R I A L S & F E A T U R E S
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A monarchy, Madam, a monarchy Ardeshir Cowasjee
Forget about debt, retire the minister Mohammad Malick
Our image abroad Dr Maqbool Bhatty
The army as constitutional stabiliser Ayaz Amir
Making public places safer by barring the public Mohammad Malick

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S P O R T S
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Pakistan in true form for first Test at Lord
US media call Games a 'colossal mess'
Shahbaz leads Pakistan to win over US
Witnesses say Picking seam of ball a common practice
Imran's counsel begins his arguments in libel case

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N A T I O N A L N E W S
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960720
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Afaq launches campaign for province
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Our Reporter

KARACHI, July 19: The MQM Haqiqi formally launched its campaign for a
southern Sindh province at the Nishtar Park rally and decided to initiate a
signature campaign from Aug 1 to muster public support for the demand.

Afaq Ahmed , chairman of the party, declared that his party would announce
its future strategy on Aug 14.

ôOur struggle is constitutional, within the geographical boundaries of
Pakistan and not directed against any community,ö he said.

The Haqiqi chief surprised the audience when he said the demand for a
southern Sindh province was aimed at completing the unfinished agenda of
the founder of Pakistan PeopleÆs Party, the late Zulfikar Ali Bhutto.

ôZulfikar Ali Bhutto had said there were five units of Pakistan and we want
to complete the unfinished agenda of Zulfikar Ali Bhutto.

He said the late Zulfikar Ali Bhutto had in 1973 Constitution declared that
there were five linguistic entities in Pakistan in which Punjab, NWFP,
Balochistan, rural Sindh and urban Sindh were included.

Except for urban Sindh all the four entities got the assemblies and we now
want to complete the unfinished his agenda by giving an assembly to urban
Sindh as well, said Mr Ahmed.

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960723
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Four killed in Lahore airport bomb blast
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Staff Reporter

LAHORE, July 22: At least four people were killed and around 58 injured,
three of them seriously, in a powerful bomb explosion in the lobby of the
Lahore airport.

The bomb, believed to have been foreign-made and placed in a brief case
near a kiosk in the area outside the departure lounge, went off at 12.33pm.

A PIA flight had just closed, and no other flight was scheduled for another
couple of hours, otherwise the concourse would have been more crowded with
passengers and relatives and the toll would have been higher. This is the
first such incident at the cityÆs airport, which has recently become busier
with a number of international flights.

Two of those killed were blown to bits by the explosion, and pieces of
flesh and torn clothing were seen even outside the building. One body was
found intact. There was blood all over the place and spattered on the
walls. The bomb damaged a large area in the centre of the lobby.

Punjab chief minister Arif Nakai accused the airport security force of lack
of vigilance. He said initial reports showed that the metal device weighed
two kg and was foreign-made.

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960725
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Blast probe on, no clue in sight so far
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Staff Reporter

LAHORE, July 24: Various agencies associated with the Lahore Airport blast
continued their investigation, but so far failed to find any clue.

Jessi Escot, an expert of the US Federal Bureau of Investigation based in
the American embassy in Islamabad had also arrived in Lahore. ôUS expert
has collected some samples for examination from the sites and would shortly
send a report to Lahore police about his findings after the examination of
samples, Cantt SP Maj Mubasharullah told Dawn.

An ASF official confirmed that no agency had so far been able to find any
piece of explosive device. He said the bomb disposal experts made their
estimates about the type and intensity of the device on the basis of the
damage done and the eye-witness accounts of the injured.

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960723
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10 injured in Sargodha explosion
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Correspondent

SARGODHA, July 22: Ten people were injured when an explosive device went
off in the cityÆs busiest trading area.

The bomb exploded near the Block 2 mosque at about 5:50pm. Probably a one
kilogram home-made high explosive device, it left a two-foot deep crater.
The bang was heard as far as two kilometres from the bombing site.

Eyewitnesses told Dawn that the blast hurled a stunned boy sitting on the
wooden board of a wayside vendor high into the air. Passers-by and some
other vendors were also injured. Splinters of the vendorÆs board and debris
were seen flying higher than the adjacent mosque. Glass panes of cupboards
in the adjoining shops were also broken.

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960720
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Pakistan needs some time to respond to Indian talks offer: FO
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Hasan Akhtar

ISLAMABAD July 19: A Foreign Office spokesman said it would take some time
to respond to the Indian suggestion to revive dialogue between the two
countries.

Responding to a question, the spokesman said it was ôa majorö decision and
would take some time for Islamabad to respond.

He also said that the Foreign Ministry had not yet received any Indian
suggestion for liberalisation of visas between the two countries.

The issue of reopening consulates in Karachi and Bombay had been under
study ever since they were closed, he added.

The spokesman debunked the Indian claim that the elections to a local
assembly in the occupied Kashmir signified return of normality in the
disputed territory.

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960723
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æShift in Pakistan stand on CTBTÆ
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Staff Reporter

LAHORE, July 22: The Pakistan Muslim League said on Monday PakistanÆs stand
on a Comprehensive Test Ban Treaty had undergone a change from the long-
standing position that Pakistan would not sign the CTBT unless India also
did so.

The partyÆs information secretary Syed Mushahid Husain recalled at a news
conference on July 18, a Foreign Office spokesman had told the Press that
the ôPakistan would decide about signing the CTBT at an appropriate time,
taking into account its security concerns, the final text of the treaty and
the position taken by the nuclear weapon and nuclear capable statesö.
Again, he pointed out, there was no mention of the previous position that
Pakistan would not sign unless India also did so.

The PML leader said the change in PakistanÆs stand on CTBT, first indicated
on July 11, 1996, was reiterated by the foreign minister in a statement, on
July 22.

ôThis change in PakistanÆs position has suddenly come about following the
letter written by President Clinton to Prime Minister Benazir Bhutto urging
PakistanÆs signature on the CTBT. However, no reason has been given for
this change in PakistanÆs positionö.

Syed Mushahid Husain said Pakistan had changed its position unilaterally on
signing the CTBT at a time when India hardened its position on this issue,
although Pakistan was facing far more serious security concerns.

ôAny unilateral accession to CTBT without India agreeing to do so will mean
that Pakistan has bartered away its nuclear option just because a weak and
spineless leadership is at the helm of affairs, which cannot even protect
the vital national interests. This would be the third major compromise on
PakistanÆs security in less than a decade without any quid pro quo:
Pakistan unilaterally capped the nuclear programme in 1989, provided relief
to India on East Punjab and now the U-turn on CTBTö.

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960724
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137 held on way to training in Afghanistan
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Bureau Report

ISLAMABAD, July 23: The law enforcement agencies have arrested 137 people
who were being sent by religious parties and the MQM to Afghanistan for
training in use of arms, the interior minister, Naseerullah Babar, claimed.

He alleged that these people had been rounded up during the last two or
three days. He did not disclose where they were arrested.

Gen Babar said nine of these people were sent for training by Al-Karam ų
one of the main offices of the Mohajir Qaumi Movement in Karachi. Among the
others, there were some non-Muslims as well. Who would have been
responsible for the behaviour of these non-Muslims when they returned? he
asked while dilating on recent bomb blasts.

He did not name any particular religious party but said majority of them
belonged to Punjab.

"What culture we are going to develop if religious parties start involving
themselves in subversive activities?" he asked. "We will not hesitate to
arrest any one going to Afghanistan for training," the minister declared.

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960720
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OPF to launch pension plan for expats
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Bureau Report

ISLAMABAD, July 19: Overseas Workers Foundation (OPF) is launching a
pension scheme on August 6 for overseas Pakistanis, by offering them
adequate funds in case of death and disability.

According to the OPF Managing Director Mr Asif Nawaz, this will be a joint
venture of the OPF and the State Life Insurance Company. He told Dawn said
that the pension scheme for overseas Pakistan was a well thought out scheme
in which anybody could participate by contributing a minimum Rs 500. The
OPF Managing Director said the OPF would be responsible for paying the
pension amount, the State Life Insurance Company would cover death and
disability factor. ôThis scheme has been approved and widely appreciated by
the International Labour Organisation (ILO), Asif Nawaz said. ôThe ILO has
termed it as a best pension scheme ever offered in any manpower-exporting
countryö, he said adding that four international companies have been given
the contract for managing the pension funds. He pointed out the amount
could be contributed in Pakistani rupees or US dollars by overseas
Pakistanis. ôWe have hired the services of four multi-national companies to
mange the scheme in both the currenciesö, he said.

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960725
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Corruption eating up SAP, say critics
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Shaukat Ali

LAHORE, July 24: Speakers at a seminar here stunned the audience by
pointing out that multi billion rupee Social Action Programme being carried
out since 1993 was a complete failure.

They said SAP funds were being grossly misappropriated, civil works of
different schemes were extremely poor and government departments engaged in
the programme were least interested in producing results. They observed
that the building department showed no enthusiasm in handing over school
buildings, built with SAP funds, to the Education Department which was also
not keen in taking over their charge. The said: ôPC-4 is not made to
complete the last formality before making the school to operate. Similar is
the fate of health facilities being built under SAP. If all these
bottlenecks are somehow removed, the Finance Department does not release
recurring funds. Sanction for new expenditures is not issued. In most cases
where all these formalities have been completed there is no staff to run
the projectsö.

So for over Rs 100 billion have been spent on SAP, 25 per cent of which is
foreign-funded, during last three years. National Press has been publishing
stories about the poor performance of the programme which aims at improving
quality of life at the most backward areas. Provincial governments, Punjab
in particular where Rs 57.5 billion have been spent so far, however, have
been claiming a high degree of success.

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B U S I N E S S & E C O N O M Y
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960725
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Rupee drops to record low against dollar
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Staff Reporter

KARACHI, July 24: The rupee on Wednesday was traded at a record low of Rs
38.32 on the open market, after the central bank officially lowered its
parity by another seven paisa against the US dollar at Rs 35.32 and 35.49
for spot buying and selling, respectively.

ôThe dollar is in a terrible short supply as each investor is making
frantic efforts to make these bills a safe haven in the current political
uncertaintyö, said a leading currency dealer adding, ôbig stocks are
exhausted within no timeö.

ôStock brokers are selling blue chips to buy the dollar on predictions that
shares could fall to any lows, but dollar is heading towards its next chart
point of Rs 40ö, another said.

There is virtual panic buying of the US dollar as it has now assumed the
role of a safe investment and there are fears in some quarters that the
current tendency to have dollar could deal a serious blow to the economy as
a whole, dealers said.

ôThe first victim of craze for the US currency is the stock market, while
other financial markets might follow the suit in due courseö, analysts
fear.

In kerb trading, it was quoted at Rs 38.28 and 38.32, thus surpassing its
pre-budget low level of Rs 38.23 and 38.29, respectively.

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960723
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Petroleum products prices reduced
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Our Correspondent

ISLAMABAD, July 22: The government announced on Sunday that prices of
petroleum products had been reduced.

According to a press release issued by the Ministry of Petroleum and
Natural Resources, the revised price of motor gasoline (regular) is Rs
14.54 as compared to existing price of Rs 14.69. According to the revised
prices, Super/Premier plus will now be sold at Rs 15.956 in place of
previous price of Rs 16.046. Kerosene will now be selling at Rs 6.91 in
place of existing Rs 7.26.

Similarly , high- speed diesel which was available at the price of Rs 7.46
per litre, will now be available at Rs 7.11. Revised price of light diesel
oil will now be Rs 5.35 as compared to existing price of Rs 5.73. Jp -1
whose existing price is Rs 5.81 will now be priced at Rs 5.33. Jp 4 which
is selling at Rs 7.94 will now be available at Rs 7.55.

Furnace oil Rs/M.Ton) Rs 4514.71 will now be selling at Rs 4234.71.

A spokesman for the ministry stated that the reduction in the prices of
petroleum products had been made in accordance with fluctuation in the
prices in the international market. The government, the spokesman said, had
stood by its promise that benefit of decrease in prices in the
international market would be passed on to consumers. He further said that
prices of petroleum products were also reduced on June 13, 1996. The
ministry has directed oil marketing companies and the local administration
to ensure that dealers made the products available and sell the same on
reduced rates. Those found violating the directive would be punished, the
ministry spokesman warned.

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960720
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The æcoloursÆ of corruption
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Sabihuddin Ghausi

ALL the three major banks are finding it increasingly difficult to recover
Rs 14.45 billion they advanced from October 1991 to August 1993 to
individual borrowers under the yellow cab scheme. Their effort to impound
the defaultersÆ vehicles has further added to the confusion.

In the case of Habib Bank, which advanced the highest amount of Rs 7.9
billion for the purchase of 27,649 vehicles, a Vigilance Cell was set up in
June 1995 to expedite the recovery process. The cell was wound up in June
this year after it had reportedly spent about Rs 30 million, recovered
hardly Rs 150 million and failed to maintain any proper record of the cars
and vehicles impounded and their subsequent release.

The HBL had earlier received countless complaints from the borrowers who
were ready to clear their dues but were unable to trace their impounded
vehicles. They had also made representations to President Farooq Leghari,
the Prime MinisterÆs Secretariat and many others who matter in running the
affairs of the State.

ôOne of these impounded vehicle was gifted a charitable trust in Karachi
and was being used as an ambulance,ö a senior banker disclosed who said the
owner of the vehicle saw the ambulance, identified it and complained to the
top authorities.

ôIt is now in the process of being returned to the owner,ö he added.

Investigations being made into the working of the disbanded Vigilance Cell
has brought forth startling revelations.

Bankers fear that a large number of such vehicles might have been sold to
persons other than the owners. The buyers might have taken them away to
Afghanistan or Iran or even to Central Asia. Figures available for the
impounded cars are based on a statement given by the Chairman of the Cell
at a Press briefing on March 26. He informed the newsmen that 1,171 cars
and heavy vehicles had been impounded.

But according to the bankers, the Cell operated through nine regional
offices and about 80 zonal offices in all parts of the country and must
have confiscated about 4,000 vehicles.

So far these bankers have been informed about the presence of some 600
vehicles in warehouses in Peshawar, Faisalabad, Multan, Karachi, Quetta and
Hyderabad. Reports are still awaited from Islamabad and some other places.
Of these 4,000 vehicles, about 2,200 are believed to have been handed over
to authorised or unauthorised people.

But according to a conservative estimate, about 1,800 vehicles are missing.
Some other sources claim that the number of missing vehicles could be 5,000
or more.

ôIt means loss of over Rs 2 billion to the bank in addition to the claim
petitions to be filed by the genuine borrowers in futureö, a senior banker
said.

Bankers say that the FIA has taken up cases in the dozens on complaints of
the individuals while over a dozen cases have been filed in courts which
could place the HBL under tremendous pressure.

Soon after taking over the government, the PPP leaders including Mr Salman
Taseer had come out with a detailed charge-sheet related to bungling in the
yellow cab scheme. Calling it a ômad, fraudulent scheme,ö Mr Taseer had
alleged that the owners of 24,640 out of 56,642 vehicles delivered under
the scheme were either untraceable or were defaulters.

As many as 6,235 borrowers of HBL were untraceable and 7,336 were found
defaulting on payment of their loans. In United Bank 283 vehicles were
reported to have gone to fictitious persons and 7,281 were defaulting on
payment out of a total of 21,149 borrowers. But it was also alleged that
out of more than 10,000 borrowers in three Karachi branches of the UBL,
about 4,000 were fictitious.

In National Bank of Pakistan, 527 borrowers were not traceable and about
3,000 out of a total of 9,185 were defaulting on payment.

The sponsors of the yellow cab scheme had projected that the owners of the
cars would clear their dues by 1998 while those who borrowed for coaches,
buses and heavy trucks would adjust their loans by 1999. ôIt now seems that
the banks will not get back their loans even in the next century,ö is the
comment of a senior banker.

While the PPP leaders blamed the previous government for the yellow cab
scheme funded by the government banks, they themselves demanded Rs 1.8
billion from these banks to finance a two-wheeler scheme ų bicycles and
motorcycles ų for federal government employees. The proposal was made in
May 1994 but could not be implemented. However, they persuaded the banks to
finance ægreen tractors schemeÆ and are now trying to engage them in the
afforestation programme.

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960720
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How about export-led growth!
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By M.B. Naqvi

ISLAMABADÆS economy managers have been talking of making Pakistan an Asian
tiger through rapid development and by exports, for which purpose they have
perfected a large number of incentives and the whole economy was supposed
to respond to the supply side incentives and measures to boost exports.
That began some 20 years ago really.

In fact the talk has gone on even longer. But since the adjustment
programmes of the IMF during the period of Mr Ghulam Ishaq Khan, the idea
of export-led growth has held ground and it has been implicitly assumed
that the IMF recommended policy package is compatible with this idea, even
if it is not directly predicated on it.

The time has come to reassess the progress made. Only the other day Senator
Sartaj Aziz, an eminent opposition politician, cut the 1996-97 budget into
pieces with trenchant criticism.

In his criticism he repeatedly returned to the idea of export growth having
been dismal and indeed a failure. Newspaper readers are aware that in terms
of the number of Pakistani rupees earned through exports, various
percentages of its growth were propagated by the governmentÆs publicists.

The fact is that Pakistan has never been able to hit the target of exports
set by the Commerce Ministry for several years running now at some $ 9
billion and some time even $ 10 billion. The dollar earnings of exports for
the last four years have stayed stuck at around $ 8 billion plus or minus a
few hundred million.

Why has this performance been so lacklustre, if not downright worrying?
What the opposition politicians say should be left alone because of their
political motivation. But what is obviously true is that the exports have
not grown by the desired rate simply because of one main manifestation of
our economy managersÆ failures: it is the high rates of inflation that have
made Pakistani exports non-competitive.

Steady erosion

The high inflation rates have meant a steady depreciation of the Rupee in
an effort to keep exports competitive. Since this was the only instrument
available to them and was indiscriminately used by IslamabadÆs economy
managers, the purpose has never been achieved. Why? because input costs of
the industries that produce the surplus for export produced goods at prices
that made the exports too expensive for their importers abroad.

Here it must be remembered that Pakistani exports are mainly simple
processed goods when they are not merely primary products. The value-added
items are few and far between; the reliance for a majority of the exports
is on simply processed goods like cotton yarn or primary value-added goods
of leather when raw hides and skins are not exported directly.

What the government has sought to gain by devaluing the Rupee was ipso
facto counteracted by the adverse effects of higher import prices - a
necessary consequence of devaluation - which would increase the domestic
prices of all Pakistani produced goods. The exporters were penalised by
PakistanÆs economy managersÆ own strategy.

The second major reason why exports have not risen at a rate that would
solve some of PakistanÆs problems is that Pakistani industries, and
agriculture also, are not producing enough of a surplus.

The fact of the matter is that the economy has been stagnating since
August/September 1992 or shall we say 1993 as Mr. Sartaz Aziz has claimed.
Whatever may be the precise cause, and the government is not quite free of
blame on this score either, the fact is that the growth rate of the economy
(GDP) has not registered a respectable rise.

Scepticism galore

Sometimes good GDP rises are recorded, as in the case of the year just
concluded, but on these occasions a lot of scepticism by not only
politicians in the opposition but also independent economists and
commentators is to be seen.

A lot of growth in the services sector and the money spinning activities of
non-commodity producing sectors often cause a high GDP growth rate that is
in fact unreal. Why? because if the GDP growth rates are not based on the
production of goods and marketable services the GDP rate might mean very
little.

What that means is that even though it is known that the inflation rate has
been taken into account for arriving at the GDP growth rate, the fact of
the matter is that if the material goods and service of a marketable kind
have not been produced at a respectably high rate that the GDP growth rate
would itself encourage inflation.

Thanks to macro-economic management of the economy being less than
satisfactory, nothing could be done about our industrial growth rate
because production in the large-scale sector has been stagnating and the
government has not been able to do anything about it. All it could do was
to concentrate on the balance of payments deficits and use the instrument
of devaluation.

The Rupee has been devalued last year by over 10 per cent and in recent
years the rate of Rupee depreciation has been more than 10 per cent. But
there are limits to the benefits that accrue from devaluation. These have
now been demonstrated by stagnating exports.

Even the stagnating export incomes hide the fact that some of the export
incomes even in dollars represent inflation in prices. The real export
performance may be even negative during the last three or four years. This
is an alarming situation and underlines the failure of IslamabadÆs official
wizards, not to mention the accumulating reasons for treating IMF policy
package with greater scepticism

The fact of the matter is that devaluationÆs have in fact boomeranged in
the shape of cost-push inflation. The stagnation of exports underline this
effect. It is now possible to pronounce that whether it is the Structural
Adjustment Programmes or the export-led growth strategy, nothing seems to
have worked largely because either the masters of Islamabad have been
unable to implement the favoured ideas either in full or these ideas are
inadequate.

IMFÆs defenders

The defenders of the IMF have a case. The IMF has never compelled Islamabad
to bring down the budget deficit by relying only on one strategy, viz of
increasing indirect taxes and revenues from government-supplied goods and
services by increasing their prices. The purpose could have been well
served if Pakistan could have reduced her non-productive expenditures.

Here it is necessary to make a fine distinction between which particular
current expenditure needs to be cut and which needs to be protected. The
fact of the matter is that the overall size of the current budget needs to
be brought down at the same time as the revenues base is widened and more
revenues are mobilised. That is what the IMF advice is.

It the government in Islamabad cannot possibly reduce the current
expenditures it is not IMFÆs fault that the heaping up of the new taxes
becomes counter-productive through both the smaller mobilisation of revenue
and by the contraction of tax-producing activities of the economy.

PakistanÆs economy has been trapped in this situation. The government has
increased the inflation rate simply because it could not cut expenditures.
Which is why the strategy is not producing the desired results. The budget
deficit is not really coming down in the way it is expected to by our
government or by the IMF monitors.

While the economy managers failures are patent, it is necessary first to
enumerate the failures and then to pick and choose as to which is more
important or basic. The failures include:

(a) Islamabad is having great difficulty in reducing the budget deficit the
way the IMF has desired. It failed to do so in the 1995-96 budget and it is
now again failing in the case of the revised budget for the same year and
the more realistic expectations from the budget of 1996-97 are the same.

(b) It has been unable to reduce non-productive current expenditures to any
desired level. The reasons are many and some have become structural.

High defence expenditures in the past have meant large accumulations of
domestic debts the servicing of which by now has become the number one item
of the current budget, forcing defence expenditure into the number two
slot. It is now possible to say that Islamabad does not know how to reduce
these two items while its control over others is not too tight.

(c) Although Islamabad has been raising new taxes over the years and
increasing administered prices of goods and services provided by the
government, its expectations of raising pre-determined revenues are proving
unrealistic.

Expected yields from revenues enhancing measures has consistently fallen
below expectations. In other words diminishing returns have set in.
Moreover higher taxes have now had another deleterious effect, viz it is
stoking the fires of inflation.

(d) PakistanÆs comparative advantage in exports was low labour costs and
low costs of production in industry. That advantage has largely been
frittered away. And here a large measure of blame may have to be shifted on
to the IMF policy package.

Although it was not IMFÆs worry to maintain PakistanÆs comparative
advantage. But it was Pakistan governmentÆs duty whether stated or left
implied to maintain the comparative advantage of Pakistani exports.

Consumption culture

(e) Pakistani society and government are afflicted with a consumption
culture. There have been years in the recent past when overall national
consumption is far too high and that is both in public and private sectors.
Which translates into what one has discussed so far: why exports have not
risen or the likelihood is they will not rise unless economic management
improves.

It is necessary to lay down a few indicators or markers as to when exports
growth will begin to rise. The first is of course macro-economic stability
with a low inflation rate. Needless to say, there can be no stability if
inflation is high.

Without macro economic stability, the idea of making exports grow steadily
is unsound. Secondly the GDP rate needs to be pushed up to above six per
cent, provided the GDP quality is right.

In other words the GDP rate is based on real increase in production of
consumable and exportable goods and services. The economy should produce an
export surplus after meeting the normal requirements of domestic consumers
That is an important pre-condition for export growth.

The government has to think harder in order to produce a set of incentives
for exports. Too many incentives of the wrong kind can lead to a spurt in
exports for one or two years and then as soon as the circumstances change
or the incentives have to be reduced or withdrawn, the exports will slump
again and will not rise at any desired rate.

The fourth is in fact the opposite of what was said a while ago. The
government has to find suitable disincentives for imports. This is a tricky
field. The government does not have many instruments for discriminating
against excessive imports; it is required to maintain a free import regime.
it is also required to reduce the tariffs. Or at any rate not increase
them.

How then to increase disincentives for imports? That is the challenge. So
far the import prices have risen mainly through devaluation, without
actually discouraging imports for a variety of reasons. Can it stop this
source of cost-push inflation in the economy?

One particular field that has been left altogether out of discussion: it is
the need to increase invisible exports or the exports of services. We need
to do that in order to reduce the invisible imports that are such a drain
on our current account deficit - which incidentally has risen to an
unprecedented high level of about $ 4 billion. This is an unsustainable
level and something drastic has to be done.

The question is can PakistanÆs economy managers achieve all this. The short
answer is no, so long as they do not reduce the budget deficit by reducing
the debt-servicing as well as defence servicing. These two things have now
become an economic imperative without which the economy might go to the
dogs in a few more years.

We have to reorient the economy to conditions where foreign aid will vanish
and we will have to fend for ourselves.

The key to this lies in reducing non-productive and wasteful expenditures.

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960725
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Disaster looming large over textile industry
-------------------------------------------------------------------
Shamsul Islam Naz

FAISALABAD, July 24: The looms that mushroomed here during the first three
decades after partition, are owned and financed by common people including
weavers, traders, serving and retired government and private sector
employees and even housewives, who invested their savings into this
lucrative business and are, wholly or partially, dependent on this now not-
so-lucrative business.

To feed this exceptionally large number of powerlooms and textile mark-ups,
thousands of preparatory, ancillary and auxiliary units have sprung up
which are interdependent upon each other. Among these are over 110 sizing
factories, 217 calendaring, bleaching, dyeing, printing and processing
units, 161 foundries which are manufacturing the machines and spareparts.
Hosiery units, which though not directly dependent upon powerlooms are
nevertheless part and parcel of the gigantic textile complex, besides of
course, 150 factories making garments.

Then there are thousands of wholesale and retail dealers who sell raw
material and the end-product of these looms ų i.e. cotton and artsilk yarn,
cloth and garments in the domestic and international export markets. The
number of commercial exporters of fabrics whose annual sale exceeds over
$500 million is 200 while the Faisalabad yarn market is regarded as the
largest in Asia, and one of the largest in the world.

All told, the number of investors and employees engaged in the textile
industry and trade is well over 600,000. So every fourth citizen here is
directly or indirectly involved in the textile industry. The wage earners
included in this number come form adjoining villages every day and go back
at the end of their shifts.

It goes without saying, therefore, that when the textile industry into the
city is adversely affected, the entire civic life of the city and a part of
rural life in adjoining villages, comes to a virtual standstill.

Such an eventually has already arisen due to the imposition of the GST
(general sales tax) at the rate of 18 per cent. Normal business is in
crises. Even the local restaurant, snack bars and teashops are desolate.
Even some marriages have been postponed here.

The local four-star hotel and other more modest establishments become the
venue of protest seminars. A convention on national level was held here the
other day in the Serena Hotel. It was jointly sponsored by the All Pakistan
agricultural machinery and implements manufacturers association (PAMIMA)
and Faisalabad foundry owners trade group (FF&TG).

Their contention was that the imposition of the GST on agricultural
machinery and implements would hit the production of food and cash crops.
Representatives of the ailing textile sector ų powerlooms, hosiery and
sizing units ų were present at the convention plus, of course, the
representatives of Anjuman-i-Tajiran. The words of the spokesmen of the
sizing units can still be seen on the walls of the venue of the convention:
ôHosiery and sizing units are on an indefinite strike while the powerlooms
units are also gradually closing down.ö

Because of the closure of the powerlooms, at least 300,000 people directly
employed, 500,000 indirectly connected and 200,000 daily wage earners have
became jobless.

The unemployment of such a huge number of people has hit the social and
economic life of the city badly. There could have been some relief had the
deadlock remained restricted to the powerloom industry. But the crisis has
been aggravated because of the strike by the shoemakers oilsees processing,
sizing, foundry units, paper cone manufacturing, furniture, hosiery and
plastic manufacturing units.

A local economist thinks that if the powerlooms remain closed, for just as
much as one month, the largest yarn market of Asia shall be constrained to
keep its shutters down and the national export performance will be
adversely affected and its impact will felt by the whole city and district.

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960725
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Stocks fall across a broad front
-------------------------------------------------------------------
Staff Reporter

KARACHI, July 24: Stocks fell across a broad front on near-panic selling
spurred by news that Opposition will launch anti-government drive to unseat
it.

ôThe WednesdayÆs Islamabad meeting of a dozen political parties to agree on
a one-point agenda of unseating the government triggered sellstops all-
roundö, dealers said.

ôInvestors are seeking huge quantities of dollar after selling shares of
some of the blue chips, still holding a fair profit marginö, they added.

ôThe investment in the US dollar might not ensure a fair return in a
shortest possible time but the money is certainly safe at least at its face
valueö, they added.

The KSE 100-share index, therefore, suffered a fresh big setback of 29.12
points at 1,524.90 as compared to 1,554.02 a day earlier, reflecting the
weakness of the base shares.

ôInvestors have no intention to buy shares even at the falling prices but
rather they are thinking to get out of the market after selling their stake
in the big sharesö, they added.

The total market capitalisation has, over the last two months,
progressively declined from Rs 385bn to about 340bn, showing how the values
of shares are eroding but subtly, without creating scare among investors.

Minus signs again dominated the list, although bulk of selling was directed
against the overvalued shares having a fair profit margins.

PSO led the list of major losers, falling by Rs 10 followed by other
pivotals such as Adamjee Insurance, ICP SEMF, MCB, and 4th ICP Mutual Fund,
falling by Rs 1.50 to 5.

Among the leading MNCs, which came in for renewed selling and fell further,
Shell Pakistan, General Tyre, Indus Motors, BOC Pakistan, Colgate Pakistan
and Brooke Bond Pakistan were leading which suffered fall ranging from Rs 2
to 3.

Engro Chemicals and Glaxo Lab also followed them despite reports of higher
earning and predictions of good dividend, falling Rs 2 to 3.

Balochistan Wheels, which has been in active demand over the last few
sessions on conflicting rumours about the management change and had risen
sharply, also came in for active selling but fell modestly. Whether or not
it resumes its upturn in a falling market in the coming sessions, will
largely depend on the positive background news.

Some of the leading shares, however, managed to show good gains under the
lead of Javed Omer, EFU Insurance, Nagina Cotton, Packages, Quice Foods,
Gillette Pakistan, United Distributors and Security Papers, rising by one
rupee to Rs 2.75 but the gains were technical adjustments rather than
genuine increase in a falling market.

The most active list was topped by PTC vouchers, off one rupee on 7.897m
shares followed by Hub-Power, easy 45 paisa on 3.373m, Dewan Salman, off 75
paisa on 0553m, FFC-Jordan Fertiliser, lower 10 paisa on 0.347m and Dhan
Fibre, easy 25 paisa on 0.247m shares.

Other actively traded shares were led by newly listed Commercial Union
Assurance, off 40 paisa on 0.222m, Faysal Bank, off Rs 1.05 on 0,348m,
Ibrahim Fibre, lower 35 paisa on 0.266m, and Southern Electric, easy 10
paisa on 0.193 m shares. There were several other notable deals also.

Trading volume fell to 18.984m shares from the previous 22.447m shares
owing to the absence of leading buyers.

There were 349 active scrips, which came in for trading, out of which 192
suffered fresh setbacks, while 65 rose, with 92 holding on to the last
levels.

-------------------------------------------------------------------
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===================================================================
E D I T O R I A L S & F E A T U R E S
===================================================================
960719
-------------------------------------------------------------------
æA monarchy, Madam, a monarchyÆ
-------------------------------------------------------------------
Ardeshir Cowasjee

FROM Fali Sam Nariman, senior advocate of the Supreme Court of India,
President of the Bar Association of India, President of the International
Council for Commercial Arbitration, Vice-Chairman of the Executive
Committee of the International Commission of Jurists (Geneva), and a
council member of the International Bar Association Human Rights Institute:

ôNew Delhi, April 23 1996.

ôDear Ardeshir, I was delighted to read your extremely well- written
article in the Asian Age this morning, reproduced from the Dawn [æGlass
TowersÆ, April 12]. It requires wide distribution in our large cities as
well and I have already sent a copy to our great Environmentalist Judge,
Justice Kuldip Singh, Senior-most Judge in the Supreme Court of India.

ôMore grease to your elbow.

ôP.S. If Justice Kuldip Singh was a Judge of your Supreme Court he would
have (on reading your article) issued notice suo moto and have taken on
board the matter you refer to ų and have asked the builders to justify the
legitimacy of the construction.ö

ôKarachi, July 14 1996.

ôDear Fali, Thank you for your letter of April 23, concerning Glass Towers.
In the meantime, you must have received my faxes with all the news of how
our judiciary has triumphed. The Executive has still not implemented, in
toto, the Supreme Court judgement of March 20, but the Chief Justices have
exercised proper damage control. Those judges, they consider unsuitable for
confirmation, are being assigned no work.

ôOn the Glass Towers front: Before our judges could take any action, the
Chief Minister of Sindh, on reading my column, asked the Commissioner to
inquire into his (the CMÆs) own orders and submit a report. An official
press handout from the Information Department of the Sindh government
stated that ôSindh Chief Minister also directed the Deputy Commissioner,
Karachi South, to immediately stop construction work of Glass Towers at the
site till the submission of the inquiry report.ö

ôPeople were pleased. Here at last was a minister willing to look into
himself and to perhaps correct himself, they said. They assumed that the
protuberance would be demolished, their road would be widened, and the
building would be built in consonance with the regulations.

ôBut those few who really know how things work in our country knew that
those working under the CM ų the Commissioner (who is also the Chairman of
the Governing Body of the Karachi Development Authority ų KDA), the
Director-General of the KDA, its Chief Controller of Buildings, their
staffs and all other receivers of the moolah, who had aided and abetted,
would neither be willing nor be able to provide any evidence that might
prove that their master, the Chief Minister, had wronged the people.

ôAn inquiry of sorts was held, and work on the building site was
surreptitiously restarted. The Deputy Commissioner, when asked, said that
neither were written orders given to stop the work nor was he aware of when
and upon whose orders work had started again.

ôI then faxed the Commissioner for clarification, asking him to send me a
copy of his findings. I received a frightened bureaucratic reply: æThe
inquiry report is an official document sent to the Chief Minister, who
alone is competent to make it public, if it is in the greater public
interest ... I am not aware of any written orders regarding suspension or
restart of work.Æ

ôAttempts to convince the Commissioner that the issue is of great public
interest were unsuccessful. I also faxed the Chief Minister, but naturally
there has been no response.

ôHowever, all is not lost. The harried citizens have raised funds.
Barrister Mohammed Gilbert Naimur Rahman has been instructed, and we are
filing a petition in the High Court of Sindh. That good Christian, Citizen
Engineer Roland de Souza (who has done gallant work in an attempt to
control illegal constructions all over Karachi and in some cases has
succeeded), working in conjunction with the citizensÆ environmental body
SHEHRI, has provided the grounds based on at least ten violations of rules
and regulations, including but not limited to, insufficient set-back,
improper conversion of land use, illegal coverage of compulsory open
spaces, illegal change in structural layout, etc. etc.

ôWhy and how is it that minorities have more civic sense than the majority?

ôI was recently reading about the people in charge of municipal and civic
affairs who were responsible for building the parks and gardens of Bombay
and Karachi. The names will gladden your staunch Zoroastrian heart.

ôIn Bombay, the presidents and mayors and commissioners of the municipality
have been: Dossabhai Faramji 1875-76, Sir Ferozeshah Mehta 1884-86,
Muncherji Cowasjee Marzban 1890-91, Cowasjee Hormusjee 1896-97, Sir Dinshaw
Vatcha 1901-02, Sir Ferozshah Mehta 1905-6, Dr Cowasjee Dadachanjee 1910-
11, Sir Ferozeshah Mehta 1911-12, Ferozshah Setna 1915-16, Sir Cowasjee
Jehangir 1919-20, Sir Rustom Masani 1922-23, Sir Homi Mody 1923-24, Dr
Shavax Batliwalla 1927-28, Sir Ardeshir Dalal 1928-29, Jehangir Bomanbehram
1931-32, Khurshed Narriman 1935-36, Behram Karanjia 1939-40, Dr Manchershah
Gilder 1943-44 (elected from jail during the Quit India movement and since
he could not preside, Minoo Masani sat for him,), Eduljee Sabawalla 1947-
48.

ôThereafter, politics came in. But even then, another Bomanbehram was
elected mayor in 1974-75. From 1984-86, civil servant Jamshed Kanga was
appointed administrator. It was Kanga who suspended the irregular building
of æPratibhaÆ, the illegally built upper stories of which were ordered to
be demolished by the court.

ôIn Karachi, Jamshed Nusserwanji was the President of the Karachi
Municipality for some 16 consecutive years and then became the first Mayor
of the Corporation. Other Parsi Mayors to follow him were Rustom Sidhwa,
Ardeshir Mama, and Sohrab Katrak. Over the years the Municipality also
sported a fine corps of Parsi Chief Officers, Health Officers and
Engineers. Well-known names that readily come to mind are Dr Eruchaw
Shroff, Dr Talati, Dr Bilimoria, Engineer Setna.

ôSoon after WW1, philanthropist Behramji Jehangir Rajkotwalla donated his
own piece of open land in the centre of the city, which still exists and is
known as Jehangir Park. Before its post-partition parametric partial
desecration, it was large enough to hold a cricket field where pentangulars
were played.

ôNow for an interesting story. At about the same time, Sir Jehangir Kothari
(whose photograph you see here) flattened a hill near the sea-shore and
built a palatial house. The Governor of Bombay and his wife, Lord and Lady
Lloyd, came to tea. Seeing the vista, Lady Lloyd remarked on the
magnificent view and the glorious setting of KothariÆs house. She suggested
that he build a parade, a pavilion, a bandstand and a pier and donate it
all for the enjoyment of the people of Karachi. Why not? said Kothari. He
demolished his house, imported sandstone from Jodhpur, built the structures
and then invited Lady Lloyd to inaugurate the pier on Jamshedi Nauroze,
March 21, 1921.

ôSoon after partition the open spaces around this complex were designated
and gazetted for development as a park along the sea front. But since the
1970s these spaces have been consistently in danger of encroachment by our
greedy politicians who are incapable of seeing any space without
visualising how much money could be made if built upon, and so illegal
structures have popped up here and there.

ôWe recently had a civic-minded KMC administrator, Fahim Zaman, who managed
to bulldoze all these illegal structures except for one, a hideous
intrusive high-rise venture known as æCosta LivinaÆ in which the æhigh-upsÆ
of Islamabad are embroiled. Citizens had gone to the High Court, which
æstayedÆ the construction early in 1994. But, the judiciary later having
become almost wholly politicised, the rich and the powerful managed to have
the stay vacated in September 1995 and construction was recommenced. Since
then our judiciary, as you know, has thrown off the government yoke,
asserted itself and become independent. On appeal, the Supreme Court has
now again æstayedÆ construction. The ding-dong continues.

ôWhat happens to politicians who desecrate parks and open spaces in Bombay,
Delhi or Madras? Whilst replying, would you please let me have details of
the case in which that strong Parsi High Court judge of Bombay, Bakhtawar
Lentin, convicted sitting Chief minister Antulay for corruption?

ôTo end, a story about an open space, a queen and a prime minister, which I
have often narrated, which may be of cheer to those who fear that fields
will lose to bricks and mortar, and which those that hope to gain from such
an exchange would do well to remember: æWere I to enclose Green Park within
my garden, what would be the cost?Æ, asked Queen Anne of England. æA
monarchy, Madam. A monarchyÆ, replied Robert Walpole, parliamentarian and
adviser to his Queen.

ôGood wishes, my friend.ö

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960719
-------------------------------------------------------------------
Forget about debt, retire the minister
-------------------------------------------------------------------
Mohammad Malick

ISLAMABAD: Thursday must have been a hellish day for the ever smiling
Makhdoom Shahabuddin. ItÆs one thing playing the finance minister once a
year, by reading out a speech on behalf of V.A.Jafarey and an altogether
different proposition to field real questions during the Question Hour. And
then to top it all, also take notes of a fire spitting Sartaj Aziz. As for
the embarrassments, they started early in the day for the beleaguered
finance minister.

Replying to a question the minister had claimed that the government had
serviced a debt of US$200 million. Nothing wrong with that unless of course
what you actually want to say was that the debt had been retired, and not
serviced. When the minister repeated his answer, Chairman Wasim Sajjad
probably appreciating the ministerÆs limited command over his subject,
condescendingly pointed out the difference. A sheepish smile was all that
the Makhdoom had to offer in return. But there was more to come.

No matter how gloomy the figures or demoralising an economic scenario,
Sartaj Aziz simply loves to talk numbers and nothing gets his adrenaline
flowing quicker than the prospect of a clash over statistics. A fact soon
revealed to the chagrin of the finance minister. The former finance
minister questioned MakhdoomÆs contention by citing statistics from the
Pakistan Economic Survey 1995-96 and claiming that the figures did not
match to show a debt retirement to the said tune of US$200 million.

By now Makhdoom Sahib had apparently had enough of economics and he snapped
back by saying that Sartaj was quoting ôprivate statistics.ö Once again, a
smiling Wasim Sajjad interjected by asking the finance minister: ôIf the
Economic Survey is not an official document then what is?ö This time around
the finance minister appeared too embarrassed to even offer a sheepish
grin.

But if the tired looking Makhdoom thought that his troubles were over for
the day, he couldnÆt have been more wrong because none other than Sartaj
Aziz opened the debate on a motion regarding the economic situation of the
country. It is difficult enough keeping pace with the fast speaking Sartaj
Aziz but when he gets excited with his statistical crunching, it becomes
almost impossible to keep up with his words, logic, and numbers. So one
cannot really blame Makhdoom Shahabuddin for throwing away his pen in
despair, despite his brave initial attempt to take notes of the rapid
firing Sartaj Aziz.

Not that anyone ever expects good news from a finance minister, whether
serving or former, but even then the economic scenario painted by Sartaj
Aziz was exceptionally grim. According to his observations and contrary to
what the government has persistently claimed, the budget deficit stood at
over 7 per cent as against the government touted 5.8 per cent. One can only
hope that the government is not lying considering that every percentage
point means an addition of Rs25 billion to the deficit figure.

Sartaj AzizÆs discourse was nothing if not despair galore. The country
suffered a negative trade balance of US$3 billion, its foreign exchange
reserves coming down to a mere US$1.3 billion from US$2.5 billion while the
short term liabilities stood at a walloping US$7.5 billion. One slight
incident, sparking a run on foreign exchange accounts and the country could
find it even impossible to even meet its quarterly debt servicing
instalment of a mere US$500 million. Add to that the annual tag of almost
US$4 billion that will have to be paid as a result of contracts with the
private producers of power in the country and the future could not appear
any darker. Where is all this money going to come from, he asked as those
sitting in the galleries felt their hearts sink into their socks.

Then of course there was PakistanÆs disappearing act from the World
Competitiveness Report. The World Economic Forum is as respectable an
economic forum as they come, remember how even President Farooq Leghari
felt privileged to have represented Pakistan in WEFÆs home base, Davos. It
so happens that the WEF takes out a performance report of listed economies
based on eight different criteria including the countryÆs ranking on the
basis of its infrastructure, economic policy, fiscal openness etc.,.

The findings of this report are taken very seriously by investors and
creditors in their ratings of a specific country. Pakistan, according to
Senator Sartaj, had remained listed in it and above India for that matter
in 1991, 1992 and 1993. It is there no longer while India has crawled up in
the ratings. May be someone, including the formidable economic duo of Qazi
Aleemullah and V.A.Jafarey would like to explain why?

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960723
-------------------------------------------------------------------
Our image abroad
-------------------------------------------------------------------
Dr Maqbool Ahmad Bhatty

THE Prime Minister is currently on an official visit to South Korea, an
Asian Tiger that stood at approximately the same level as Pakistan four
decades ago, but whose GNP today is at least 20 times higher. Her visit
will undoubtedly serve to project PakistanÆs concerns and perceptions in
Seoul, and lead to agreements that would promote our trade and economic co-
operation.

Summit diplomacy has become an important instrument for advancing the
national interest over the past few decades and Pakistani leaders, both
elected and unelected, have been drawn into it. One aspect, that began from
the early years of Pakistan, but has become accentuated with time, is that
our leaders regard their foreign visits as a manifestation of our national
prestige, and have tended to organise them on a lavish scale, with large
entourages, consisting of personal staff, ministers, politicians,
officials, and media teams. Our leaders also tend to be over- generous with
gifts, making the cost of such tours disproportionately high. The expense
involved in this opulent style, which successive presidents and prime
ministers have maintained, and which comes through in news coverage of such
visits, has not only aroused concern at home, but even attracted the
attention of the foreign media and leaders over the store we Pakistanis set
by pomp and display which does not quite accord with our status as one of
the worldÆs poorer developing countries.

The present prime minister has maintained a high tempo of personal
diplomacy which reflects her close interest in foreign policy. One of the
major considerations in carrying out such tours is that they are not only
good for her personal image, but also serve to project a favourable image
of Pakistan.

Speaking of the national image, there can be no doubt that the proper
projection of our perceptions and rich culture can result in our country
being seen in a better light. Therefore our embassies, and media can play a
role in publicising our national achievements, and contribution to worthy
global causes. The tours of leaders at the highest level certainly provide
useful opportunities to draw attention to our positive points. At the same
time, the undeniable fact is that our image abroad cannot be better than
the reality at home, and in this context, that image looks fairly tattered
at the present time. The basic reason for this is that, except for the
first few years, when the legacy of the Quaid-i-Azam, and the challenges of
Kashmir, and of absorbing several million refugees had generated self-
sacrifice and idealism, we have seen expediency, rather than principles
governing our national life.

The generation that participated in the struggle for Pakistan has had its
dreams for a country rising to greatness, prosperity and international
esteem by adhering to the ideals propounded by the Quaid-i-Azam utterly
shattered by the fact that Pakistan is now regarded as the second most
corrupt country in the world.

Anybody in contact with foreign analysts and observers finds them perplexed
at the lack of national feeling and loyalty among most Pakistanis involved
with international transactions. The writer has come across comments from
responsible persons belonging to diverse countries, such as the US, Japan
and Germany that Pakistanis are willing to sacrifice national interest, in
order to get the maximum personal ôbenefitö from contracts or purchases. A
foreign source that has had experience of purchasers from both Pakistan and
India, mentioned that whereas Indian officials first checked on the
quality, and bargained on obtaining the most value for money, before
claiming their commissions, the Pakistanis were indifferent to these
considerations, and even suggested price hikes to increase their cut. There
are always honourable exceptions, but the impression most foreign business
people have is that Pakistanis are obsessed with quick profits, rather than
the national interest and image.

The same preoccupation with quick wealth has become the dominant motivating
force within the country. The profit motive is the engine that drives the
free market economy, and a certain degree of corruption on the part of
officials who have the authority to award large contracts is to be found in
most developing countries. However, once a contract has been awarded, there
is some effort to ensure that the work conforms to basic standards. The
author found, during a recent tour, that in South East Asian countries,
there was no compromising on the quality of performance, and for instance,
the newly constructed roads and other structures were of international
standard. In Pakistan, the poorly constructed roads are pot-holed and give
everybody, including foreign visitors a rough ride because a contractor has
to satisfy corrupt officials at every level, and seeks to maximise his
profit by constantly lowering quality.

The corruption, and the accompanying lowering of the quality of life,
touches not only the citizens, but also the foreign visitors. Even where
the foreign business people have no direct contact with corrupt officials,
they experience the delays, and lack of courtesy and efficiency in a system
that does not run smoothly. In fact, despite official decisions to simplify
procedures for foreign investors and buyers of our exports, the pervading
greed, and inclination on the part of most of those involved to get some
personal advantage comes through. Foreign envoys, including the US
Ambassador, have complained that their business people get quite
discouraged by the procedures and practices that now look routine to us,
but turn off investors. The writer heard members of a US delegation of
academics and business experts point out that the business climate in
India, which they had visited before coming to Pakistan, was far more
congenial, and they had heard our business people complain about the
corruption and harassment around them. The effect of this on our image
abroad can be imagined.

This raises questions as to what has produced this steady lowering of the
moral fibre. The regrettable conclusion one has to draw is that after the
Quaid-i-Azam, whose name stood for integrity of the highest order, the
quality of leadership we have had, and the values that have emerged from
the example set by the rulers, have resulted in a society wedded to the
pursuit of quick wealth, without regard to the means. Such quick riches do
not come from hard work, or honest commerce, and corruption of all types
has permeated our institutions, and created conditions in which genuine
progress is hard to achieve. Another unfortunate development has been that
a normal system of accountability has not acquired roots, due to political
instability, and the virtual monopoly of power by a small elite of
entrenched interests.

The system of checks and balances inherent in a true democracy, where the
legislature enacts laws and also scrutinises the functioning of the
executive, while the judiciary upholds the sanctity of the constitution,
and of the laws, has not taken hold, as the ruling party of the day seeks
to establish its control over all three branches of the government, by
politicising the civil services, and influencing the judiciary in its
favour. Sadly, the erosion of democratic norms has not been confined to
periods of military dictatorship, but has continued even after the
restoration of representative government. The result has been truly
catastrophic, specially as successive elected governments have not only
tampered with the merit system, in packing the executive with their
favourites, but also handled the countryÆs economic affairs so poorly that
it has fallen to international agencies, such as the IMF and the World Bank
to impose a modicum of discipline in our financial management. This in
itself does not help our international image.

Pakistan inherited a fairly effective system of government from the British
colonial rulers, and in the early years, our achievements in absorbing
millions of refugees, and getting the development process initiated drew
international praise. Till the 1960s, developing countries from East Asia,
such as South Korea and Malaysia, used to send their delegations to
Pakistan, to see how a successful development programme was operated. Three
decades later, these two countries have taken off, with per capita incomes
of $10,000 and $5,000 respectively, while we bring up the rear of the
developing countries, with a per capita income of less than $500.

The past few years have seen an acceleration of negative trends. Our tax
collectors have not been enforcing the laws, using their powers and
discretion in a manner that enriches most of them while depriving the
national exchequer of over 40 billion rupees annually, according to a five
year old estimate by a former Finance Minister, Dr Mahbubul Haq. Till
recently, the number of taxpayers was below one million, with a good
percentage of legislators paying no taxes at all. Each year, as we stagger
from one financial crisis to another, the burden of fresh taxes continues
to fall on the common man, while the landed aristocracy remains exempt, and
the gap between the rich and the poor widens.

Thanks to a combination of corruption, political interference, and lack of
accountability, an atmosphere of gloom, that sometimes approaches despair,
prevails, as law and order deteriorates, and people begin to wonder whether
the ôsystemö under which they are living is really suited for the country.
Many perceptive analysts fear that unless remedies are found for all our
ills, we may be headed for a violent revolution, early signs of which are
evident from the resort to massive street protests by a growing number of
political parties.

All these developments and trends are not hidden from the world, and the
fact that both domestic and foreign investment are lagging, underlines the
need to take urgent action to arrest and reverse the slide towards
insolvency and chaos. Such action is required, above all, by the
government, which is in the seat of power. However, all leaders of opinion,
and people of influence, have to recognise that we are in a situation where
it is not only our image that is tarnished, but that our solvency and
survival are at risk.

In urging Pakistan to play its part in promoting peace and progress in
South Asia, US Ambassador to India, Frank G. Wisner told the Staff College
at Quetta on 10 July, that India was destined to be the fourth largest
economy in the world by the year 2025, that is within one generation. While
the US interest in stability in South Asia is a separate subject, the fact
remains that our very weakness and disarray makes it difficult for us to
take a stand on our just rights. The next century approaches, and it is not
only our image that needs to be improved through summit diplomacy, but the
whole political and economic fabric has to be brought back on the rails
through accountability on the basis of Islamic and democratic values.

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960722
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The army as constitutional stabiliser
-------------------------------------------------------------------
Ayaz Amir

THE army as we know to our cost has been traditionally a threat rather than
a help to Pakistani democracy ų its propensity for interventionism being
kept in check by a thread as finely spun as that which held aloft the sword
of Damocles.

With the three exceptions of General Gul Hasan who was retired prematurely,
Tikka Khan who, while sharp about many things, was innocent about others,
and Waheed who cultivated an image of neutrality while masking his ambition
for an extension, other army commanders ų from Ayub Khan down to Asif Nawaz
and the hapless Aslam Beg ų have played with relish the role of Ataturk-
in-waiting. To improve their dramatic chances and to give a helping hand to
destiny, they have also not been above using the power at their disposal to
destabilise political governments.

In sharp contrast to this historical record, the army leadership at
present, wittingly or otherwise, is proving to be a mainstay of democracy.
It is fulfilling this role not by saying anything loud or doing anything
overt but simply by looking at the political arena through a detached and
somewhat austere pair of spectacles. More than anything else, it is this
cold detachment on its part which is acting as a counterweight to the
shenanigans and excesses that are to be seen in the political sphere,
because a cold eye, whether its glitter is polished in a drawing room or
the parade ground, discourages the taking of liberties. Whether behind this
cold eye there at all lurk any Kemalist ambitions can only be, in the
absence of anything verifiable, a matter for conjecture and the soothsaying
arts. But what can be said with a fair amount of certainty is that if at
present there is anything which is helping maintain a balance in the
countryÆs politics, it is the sphinx-like attitude of the army command and
the expectations that, rightly or wrongly, flow from this attitude.

The leading figures of the government have made plain what they think of
the higher judiciary and its verdict in the judges case. But if there is
anything which has prevented them from giving free rein to their instincts
in this matter, it is not constitutional niceties but the feared attitude
of the third leg of the tripod from which hangs the cauldron of power in
this country. If President Farooq Leghari is beginning to show some signs
(even if ever so timid and hesitant) of his misgivings regarding the more
irresponsible acts of the government, it is because of the strength he
derives not from the Eighth Amendment but the perceived attitude of the
army. It is true that during the last two and a half years nothing has been
left undone in giving politics a bad name. The extent of national
corruption and maladministration is no secret. But even in this free-for-
all atmosphere if there is still some remaining check on the total misuse
of power, it is the rebuke implicit in the studied silence of the present
army leadership. Without even this check, imperfect as it is, there is no
knowing where the arrogance and misapplication of power would have taken
the country.

Imagine if lobbying and political influences had been allowed to determine
the choice of army leadership after the stepping down of General Waheed.
The other two leading contenders for the top post had each been assured by
their respective backers that they were sure to get the prize. Nor was
General WaheedÆs posture completely unambiguous. While spreading the
impression in public that he was vigorously averse to an extension, he had
come round to the point (such being the workings of human ambition) where
he was keen to get one. It was at this point that the President, sensing
the mood of the armyÆs field commanders, did the right thing by brushing
aside extraneous influences and basing his decision, which constitutionally
was his alone to take, on seniority and merit.

Since few men are indispensable, it is often the case that even if the very
best man for any particular post is not chosen, no great catastrophe ensues
because the person chosen in his place can also do the job reasonably well.
The replacement of General Waheed, however, was not that simple a matter
because if the seniority or merit principle had not been followed, the
principle of army unity (to put it no plainer than that) would have been
subverted because, given the reputations of the other two leading
contenders, it would have been obvious even to junior officers that in
preferring either of them the political leadership had been motivated by
other than the purest of motives. Mercifully, that catastrophe was averted
for which the President deserves the nationÆs thanks.

Otherwise, however, it is the PresidentÆs lack of resolution (for what
other name is it possible to give it?) which has bestowed a special
significance on the present detachment of the army command. In instance
after instance he has shown his unwillingness or his inability to stand up
to the more bizarre and irresponsible of the governmentÆs actions. A
constantly interfering president is not what Pakistan needs but a president
whose maturity can keep a check on the juvenile tendencies which sooner or
later lie in wait for most Pakistani governments, is an intrinsic if not
the most important feature of the present constitutional scheme (enshrined
in the Eighth Amendment) which, despite its many problems, has given the
Republic constitutional continuity for the last 11 years, something which
compares more than favourably with the first democratic decade of the
countryÆs history. Time and again President Farooq Leghari has failed to
come up fully to the responsibilities of his office, so much so that that
even some of his most ardent well-wishers in the Press are now feeling
constrained to admonish him for his lapses.

Since there is no such thing as a vacuum in politics, the slack shown by
the President has been taken up by the army command ų but again, it needs
to be emphasised ų not by anything overt that it has done but simply by
donning a mask of cold politeness. The paradox in this posture is striking
because, whereas in the past the army has threatened democracy by fomenting
and supporting intrigues against civilian governments, at this juncture the
army leadership is playing a role supportive of democracy by making a cult
of propriety. It is not saying anything (indeed its PR wing has been
working overtime recently to deny things wrongly attributed to the army
command), it is being proper and it is keeping its distance from what is
going on in the political arena.

In some ways this attitude is not much different from that of General
Waheed who prided himself on keeping the army out of politics. The vital
difference, however, is that whereas General WaheedÆs neutrality seemed
born of simplicity and a soft corner for the present civilian dispensation
(thereby earning little respect for itself even within the army), the
neutrality now to be seen is not a product of any infirmity of mind or
vision.

Not that it should spill over into anything even remotely interventionist
because there are just so many interventions that a country like Pakistan
can take. But the mere fact that there is one institution which is acting
as a psychological check if no more on the political wildness which is
pushing Pakistan into desperate straits, gives ground for hope that two
years from now, if not sooner, when the time for the next elections
approaches, the country will be able to make a fresh start and leave its
present troubles behind.

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960724
-------------------------------------------------------------------
Making public places safer by barring the public
-------------------------------------------------------------------
Mohammad Malick

ISLAMABAD: As if things weren't tough enough already for passengers
suffering from the ASF's high-handedness, the bomb explosion at Lahore
airport has now provided them with a carte blanche to impose ridiculous
restrictions in the name of security. And this disturbing development was
not lost on a handful of senators.

As expected, the upper House created a bigger noise than the ear-shattering
bomb explosion a day earlier. The treasury senators feigned genuine grief
at the loss of human lives while the opposition hawks wanted no less a
compensation than the government's resignation.

In all the din, one barely audible voice said something about a British
transport minister resigning after a train had derailed and wanted Gen
Babar to do the same. After all, as the interior minister was it not his
responsibility to ensure the safety of the lives of the ordinary citizens?
the squeaky voice argued.

It would have been more appropriate for the senator to demand the head of
the defence minister since it was the responsibility of his ministry to
ensure safety at the airports, but frankly, it was an irrelevant utterance
any way. No matter who was asked to accept responsibility and resign, would
never do it because in Pakistan ministers do not bother with such trivia as
accepting moral responsibility for the lapses of their underlings and
resign. On the contrary they even protect their offending subordinates.
Does anyone remember hearing about the prosecution of any government
functionary whose professional lapse may have resulted in the loss of human
lives, let alone of wealth and property? Never! And there's no possibility
of it changing at least in the near future.

With the hated Indians lurking a few miles away across the border,
everything can and will be conveniently pinned on them and then forgotten
about. The hidden foreign hand will take the credit once again while our
intelligence sleuths remain busy with more pressing engagements like
pampering their own superiors and ensuring a wrinkle-free checking-in for
the VIPs.

For a change the interior minister has hinted at the possibility of the
involvement of religious zealots of the Jamaat and of the MQM as well, but
in the next few days the dragnet of allegations could rope in anyone.
Meanwhile, the ordinary man and his life be damned.

Ironically, it will be the ordinary man once again who will bear the brunt
of atrocious inconveniences in the name of his own personal security, and
the process has already begun. Vehicles are being stopped a zillion miles
away from the original designated areas, people are being barred from
sauntering anywhere near the main building unless they possess a ticket.
Thanks to the absolute lack of any special training, or even that of a
mundane nature, security in Pakistan does not mean effective policing but
simply the pushing away of people as far away as possible from the building
or the person being protected.

Some of the opposition senators advised the government against developing a
mindless security phobia and confusing it with effective security measures.
It was pointed out that there were already enough security agencies
operating at airports, three to be precise without counting regular police,
and what they needed was better training and not permission to erect more
barriers after every hundred metres. Already, the overzealous ASF
authorities have sealed off the visitors gallery area at the Lahore airport
while similar public-barring knee-jerk reactions are seen at almost every
airport in the country. It is precisely such ill-planned reactive approach
that needs to be avoided, some senators later opined in the cafeteria.

The Leonardo de Vinci airport in Rome, situated in the heart of a city that
remained a target of terrorist activities for a long time, remains one of
the busiest airports in the world. Not that long ago, a bunch of terrorists
massacred passengers in the departure lounge, forcing the government into
an immediate revamping of its security arrangements. But even today, the
airport appears just as relaxed as before the gory incident. People can
still go right up to the departure gate to see off their friends and
relatives. There are no barriers, and vehicles are not forced to park a
hundred miles from the main building as it has already started happening at
our airports.

But in effect a lot has changed. Mainly, the change has been real and
covert. Electronic monitoring devices now cover the entire area and are
manned by vigilant officers trained to spot the slightest suspicious
behaviour. The security check of baggage is stricter, and there are more
policemen patrolling but not necessarily in uniform and demonstrating their
authority by giving people a hard time. Similarly, other measures have been
incorporated but in no way has the public been made to suffer any
inconvenience. Only the security agencies have been made to work harder and
more efficiently.

The interior minister expressed the opinion that things would be difficult
to manage unless the very culture of our eastern society was changed which
had a habit of sending large contingents of friends and relatives to the
airports to see off or receive friends. One is forced to draw a parallel
with Italy once again where, if Gen Babar ever got a chance to travel as an
ordinary passenger he would see it for himself, a somewhat similar social
system prevails. It is routine to spot large groups of people seeing off a
single passenger. But the Italians have apparently taken a wiser and less
time-consuming approach than that proposed by the former general; instead
of waiting for the society to change its ways, they changed the way their
security agencies operated and made them more efficient.

Makes a lot of sense, does it not General Sahib?

===================================================================
S P O R T S
===================================================================
960725
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Pakistan in true form for first Test at LordÆs
-------------------------------------------------------------------
By Qamar Ahmed

LONDON, July 24: Not far from LordÆs the allegations of ball tampering and
racism are on the boil in a court of law with former Pakistan captain Imran
Khan defending himself against Ian Botham and Allan Lamb. The simmering row
continues and is like to reach a crescendo in the midst of the first Test
starting tomorrow at the headquarters of the game.

Maybe perhaps the court case has taken the gloss out of it or maybe it is
the calming influence of two captains, Wasim Akram and Mike Atherton, the
county colleagues, who at every opportunity have stressed the fact that
this series is a bridge-building exercise.

The Test at LordÆs to be watched by millions on satellite, will be a matter
of immense interest, irrespective of the outcome. The home advantage would
favour Atherton, the crowd, a great a majority of whom would hate to see
England lose, would obviously cheer the underdogs, which England are in
this series.

But they also know that in strength, in quality and on form the visitors
are a lot a better bet. Their unpredictability is what excites them. When
on song Pakistan could be a pretty strong side and that is what they fear.

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960724
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US media call Games a 'colossal mess'
-------------------------------------------------------------------
Shaheen Sehbai

WASHINGTON, July 23: The US media is describing the Atlanta Olympics as a
"colossal mess" with both the print and the electronic media making the
chief organiser Billy Payne look like a bufoon and the IOC giving him a
simple warning: Fix the problems, now."

"Barcelona and Seoul did not work like this. You do not like to say this
but even Havana, when it was the host of the Panama Games in 1991, was a
model of efficiency compared to the so called "city too busy to hate," the
Washington Times said under the headline: "If it ain't broke, it ain't in
Atlanta."

Major TV networks, not allowed to show live coverage because NBC has
grabbed everything in a 458 million dollar package, are concentrating on
what has gone wrong with the games. More so because even the American teams
are not winning golds.

"Too much security, too little efficiency and too much of what is not
needed, incompetence," said one network reporter.

The Washington Times summed it up with the concluding line; "You have a
colossal mess" in a piece which began with: "This place is a mess ų- gone
with the witless.'

This is what the Billy Payne Games are like: rats in a maze with a serious
deodorant problem, The Times said.

And where did they land some of these interpreters? You should have heard
the one translating for the Cuba women's basketball coach Sunday. She
wasn't too strong beyond "sir you would ask the coach a question. He then
would talk for about a minute. Then she would interpret his thousand-word
answer to be something like this: "He says yes." This is just great.

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960722
-------------------------------------------------------------------
Shahbaz leads Pakistan to win over US
-------------------------------------------------------------------
Sydney Friskin

ATLANTA, July 21: The talking point of PakistanÆs 4-0 victory over the
United States in the Olympic hockey arena was the role Shahbaz Ahmed played
in creating the chances for three of the goals.

Shahbaz, whose entry into the tournament was accepted by the tournament
director only six hours before the deadline was not in the original line-up
but he made his appearance early in the game when the outside left Aleem
Raza was taken off. The late inclusion of Shahbaz in the Olympic squad
meant that Mohammed Nadeem (ND) had to go.

Pakistan did not have to wait long for their first goal. In the Tenth
minute a deft flick by Shahbaz Ahmed from the left flank pierced the
American defence and Mohammed Shahbaz beat the goalkeeper from close range.

The Americans retaliated a couple of minutes later with an individual raid
by Nick Butcher, the outside right, whose shot missed the target. Pakistan
celebrated this escape by scoring their second goal in the 18th minute
which was fashioned initially by Mohammad Shahbaz whose measured pass to
the left was picked up by Shahbaz Ahmed. Back came the ball into the circle
and Kamran Ashraf put the ball beyond the goalkeeperÆs reach.

The United States, however, did not give up trying and frequently kept
bursting into the circle but all to no avail, Mansoor Ahmed having little
difficulty saving a shot by Steve van Randwijck. Ten minutes before the
interval Pakistan tightened their grip on the match with their third goal
but this time it was Mohammad Sarwar, the outside right, who laid it on.
Travelling at high speed he cleverly steered the ball to Kamran Ashraf who
ran in his second goal. By that time the Americans knew their fate and were
lucky to escape further disaster when Pakistan squandered a penalty corner
just before the interval.

At the start of the second half Mansoor Ahmed took himself off and called
on Khaleed Mahmood to keep the goal, leaving Tahir to lead the side. Khalid
discharged his duties well and made a couple of smart saves before Pakistan
began to dictate terms again.

By the time the second half was ten minutes old Pakistan had established
clear mastery and the Americans were seen defending their citadel
desperately. Tahir missed a couple of chances through erratic shooting and
a goal by Kamran was disallowed apparently for a goalmouth infringement.

960723
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Witnesses say Picking seam of ball a common practice
-------------------------------------------------------------------
Athar Ali

LONDON, July 22: At the resumed hearing of the libel case against Imran
Khan before the QueenÆs Bench Division of the High Court it was accepted
by two witnesses called on behalf of the plaintiffs, Ian Botham and Allan
Lamb, that the practice of picking the seam of the ball was a common one in
English cricket. Former England wicketkeeper Bob Taylor, was the first to
give evidence today, as the hearing entered the second week followed by
Gladstone Small, the medium pacer Robin Smith, the South Africa-born
England Test player and Don Oslear a retired umpire.

On Tuesday the court will have a shorter hearing when David Gower, the
former England Captain, Mike Atherton, the present captain, and David
Lloyd, the England coach, will take the witness stand.

At the outset of the hearing the 12-member jury were told that India Today
magazine which has been cited by Ian Botham and Allan Lamb in the case has
a circulation of over 300,000 in India, and 25,000 internationally,
including the UK.

Ian Botham and Allan Lamb are suing Imran Khan for making remarks against
them in the magazine of being racists and lacking in education and
upbringing. Botham has also sued him for saying in The Sun that most top
bowlers in the past 20 years had indulged in ball-tampering. This, he
assumes, also included him as the highest wicket-taker for England.

The court room was, despite the hot and humid weather London is going
through, full with the upper gallery also crowded with spectators who
mostly come to see their former and present cricket heroes give evidence.
They saw Robin Smith stumbling several times while in the witness box, not
being able to comprehend some of the tough questions put to him by the
defendantÆs counsel, George Carman QC. He admitted that he was nervous as
it was not easy for him to appear in the court.

LEGAL ISSUES: The jury was kept out this morning for about 45 minutes for
the court to hear arguments from lawyers from both sides on certain legal
issues. Carman was objecting to the introduction of some fresh evidence at
this stage in the case.

The sixth dayÆs hearing began with Bob Taylor, the former England
wicketkeeper taking the witness stand. He was shown to be receiving the new
ball in the 1982 Test between England-India from Ian Botham, which the
cricket commentator in the video shown to the court, Ted Dexter, found
unusual as he thought it was being given a thorough going with his gloves,
possibly to remove some of the lacquer.

In reply to the counsel for the plaintiffs, Charles Gray QC, he told the
court that anyone who interferes with the ball to gain unfair advantage is
guilty of cheating. But he never found Botham indulging in ball-tampering.
He said that it was common practice for the bowlers to throw the ball to
the wicketkeeper and was a natural action. It is not possible in a short
time to remove any lacquer from the ball. Bob TaylorÆs gloves were brought
from the LordÆs museum to be shown to the jury.

The record-making wicketkeeper also told the court that it was not illegal
to press the ball into shape. He did not think what Ian Botham was doing on
the video sown to the court of the 1982 LordÆs Test against Pakistan was in
any way illegal. The defence has argued that Botham was using his thumbs
vertically down on the seam of the ball. He also said that in the Sun
article when reference was made by the defendant to top bowlers of the
past twenty years all having done ball-tampering, he included Botham and
Willis among them.

But during cross-examination by Carman, Bob Taylor did say that lifting the
seam was a ôhabitual practiceö in English cricket and was taken as part of
the game though it was in breach of Rule 42. His view is that the bowler
can put the ball into shape with the agreement of the umpire.

SMALLÆS CROSS-EXAMINATION: Gladstone Small, the West-Indies born player,
who played in 17 Tests for England, besides playing for Warwickshire, did
not agree with the question put to him by Gray whether he thought Ian
Botham or Allan Lamb to be racists. ôDefinitely notö, he told the court. He
also considered Botham to be the finest swing bowler of his time, someone
he would definitely include, he added, among the top half a dozen bowlers.
Botham was in his view never guilty of cheating or ball-tampering. There
was nothing wrong in pressing the ball into shape though it is a difficult
thing to do considering the toughness of the ball. But the video of the
India-England 1982 Oval Test where Botham was seen pressing the ball was in
no way an illegal act in the opinion of Mr Small.

During cross-examination he did say that lifting the seam of the ball was a
ôhabitual practiceö with some bowlers but he did not find any English
bowler doing it. Gouging the ball or scratching it was ôblatant cheatingö
whereas he did not think pressing the ball into shape fell in that category
though technically it may be illegal.

The Hampshire and England cricketer was the next witness before and after
the lunch interval. He said that he did not think Botham and Lamb were
racists. He observed that in the 1992 series certain Pakistani players had
tampered with the ball and he had personally watched them do it which to
his mind was illegal. He recalled a casual meeting with Imran Khan at which
Lamb was also present. The topic happened to be Aquib Javed who played for
Hampshire in 1991. Imran, when told about Aquib being reprimanded, said
that he should be more careful when tampering with the ball.

In SmithÆs view Botham came among three top (post-war) English bowlers whom
he had never seen doing anything against the rules. He also did not
consider pressing the ball into shape as anything wrong.

He agreed with the view of the present England captain, Mike Atherton,
which the defence counsel read out from his book, that the practice of
lifting the seam has gone on in English cricket since the day the game
began. Robin Smith found it hard to give evidence when he was being
questioned by Carman, the counsel for the defence. He groped for answers
most of the time while in the witness box. He said he was not in a position
of disagreeing with many of the cricket authorities, Carman had named, who
had said that hair oil, lip salve, and sun creams were all used in varying
degrees by bowlers. However, he was not aware of this.

Botham complimented: The last witness to take the stand today was Don
Oslear, a retired umpire, who as the third umpire in the one-day
International at LordÆs, in which Pakistan played, was at the centre of a
controversy regarding accusations of ball-tampering against some Pakistani
bowlers. He does not feel that there was anything wrong in pressing the
ball into shape but seam lifting is not an accepted practice within the
umpiring fraternity though it is not easy to detect. He complimented Botham
for not contravening the law in his experience.

But when during cross-examination he was reminded that the International
Cricket Council had cleared Pakistan of ball-tampering charges, Mr Oslear
insisted that there was a hearing at which managers and captains of the two
teams were brought together. He was also present, but did not know whether
it was a disciplinary hearing. Mr Oslear caused a lot of amusement when he
told the court that he had not read his own book. Tampering with Cricket,
in which he has said he was victim of a conspiracy by his employers, The
Test and County Cricket Board. Mr Carman quoted him as writing that there
was a Bermuda Triangle at LordÆs in which things disappeared.

It was for the sake of truth that he had appeared as a witness in a case
brought by the former Pakistani Test player, Sarfraz Nawaz, against the
Mirror and Allan Lamb which the plaintiff later withdrew. Mr Oslear went on
to say that in his experience lifting the seam of the ball was not a
habitual practice as described by a witness earlier. He also disagreed with
Mike AthertonÆs assertion in his book that it has gone on since cricket
began. Other authorities were also cited by Mr Carman to make Mr Oslear
give his opinion. But he disagreed with most commentators. ôI have no need
to doubt their word but it is certainly not my experience. He said the same
about the use of hair oil and sun creams.

In his view defacing the ball comes under cheating not pressing the ball
into shape. It is impossible to achieve it, he said. But Mr Carman caused
much laughter in the court when he said: ôSometimes one tries to do the
impossibleö when he suggested that perspiration may be used to make the
ball heavier on one side to achieve a swing. The hearing resumes on Tuesday
when more former and present day cricketers will take the witness stand.
Atherton and Lloyd have been suspended by the defence and will be cross-
examined tomorrow so that they are free to partake in the first Test at
LordÆs against Pakistan.

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960724
-------------------------------------------------------------------
Imran's counsel begins his arguments in libel case
-------------------------------------------------------------------
Athar Ali

LONDON, July 23: After the defeat that England suffered on the cricket
field at the hands of the Pakistan team in the summer of 1992, knives were
out for the Pakistani players and their former captain Imran Khan. This was
stated by George Carman QC, counsel for Imran Khan, who began presenting
his case in the High Court before Mr Justice French and the 12-member jury
of seven men and five women. The libel against Imran Khan has been brought
by two former England players, Ian Botham and Allan lamb, both of whom
allege that in an interview with India Today magazine the defendant called
them racists, and brought their class into question.

Botham has separately asked for damages for an interview published in the
British tabloid, the Sun which allegedly brought him into disrepute by
implying that he had been guilty of ball-tampering.

The charges are denied by Imran Khan who appeared in the High Court,
accompanied by his wife Jemima, for the seventh day today. They both sat
next to Kathy Botham and Lyndsey Lamb, wives respectively of the two
plaintiffs. Ian Botham and Allan Lamb. Both Kathy and Lyndsey were the last
two witnesses called by Charles Gray QC, counsel for the plaintiffs, who
completed his case today.

Earlier David Gower, the former England captain, took the witness stand on
behalf of the plaintiffs.

Carman had not finished opening the case for the defence when the court
rose for the day, almost two hours earlier than the usual sitting time
which goes on until after four in the afternoon. Carman was developing the
point that Imran had written two letters to the plaintiffs to put the
record straight that he meant no offence to the plaintiffs whom he regarded
highly. He had offered an apology saying that in the India Today article he
was misquoted and was willing to send a letter to The Times for publication
to make his apology public.

Attempts to reconciliation did not work, said Carman, because by then
knives were out for the Pakistani cricketers.

Contributions: The counsel for the defence began by saying that the case
before the court was emotionally charged because race and class is central
to it. It is bound to raise sympathies, prejudices and emotions. He pointed
to Imran Khan and the plaintiffs who were all players who had made very
great contribution to international cricket. The question may be asked why
could not they make their peace and shake hands, said Carman who described
them as "warriors" of sports. But, he added, that his client had offered
his hand of friendship but it so happened that the plaintiffs walked away.
Why was it so? The answer, said Carman, is not difficult to find because
his client volunteered whereas the others conscripted.

Carman told the jury that having retired triumphantly from cricket in April
1992, Imran Khan devoted his energies to building the Cancer Hospital in
Pakistan which is privately funded and provides free treatment to 90 per
cent of patients. He called it a model for the Third World where free
treatment is not easily available. He mentioned the bomb blast in the
hospital which nearly killed Imran Khan.

"Will such a man battle in court", asked Carman. He said Imran was prepared
to write to The Times and had made an offer to the plaintiffs on July 12,
1994. He also referred to a letter he had written to Ian Botham, David
Gower, and other on May 16, 1994 regretting that his biography by Ivo
Tennant did not reflect his views, and he was offering regrets for any
misconceptions caused by the book. Carman told the court hat while David
Gower replied to this "kind and pleasant" letter Botham did not. "Why was
not reply sent to Imran Khan's letter"? he asked.

In June of the same year Evening Standard, a London paper, and Independent
had quoted parts of an interview Imran Khan had given to India Today,
concentrating on the class question. Imran, said Carman, chose to write to
Ian Botham and Allan Lamb on June 16, 1994. He said he was misquoted and
did not suggest that he considered any of the plaintiffs under class. This
letter also remained unreplied. "What was the reason behind the failure by
Ian Botham and Allan Lamb to reply to a perfect and kind letter", he asked
the jury to think about. Instead the two plaintiffs, through their
solicitors, wrote to say that they reserved the right to legal proceedings
and damages.

In his by now much cited letter of July 12, 1994 Imran Khan, argued his
lawyer, had said that he had been seriously misquoted in India Today. He
never suggested that the plaintiffs were assists. He offered the "golden
opportunity" to put the record straight in The Times. Did they want the
record to be put straight or not?. They could have buried the allegation
for ever two years ago, Carman added.

He emphasised that out of all the bowlers of the world only Ian Botham came
to sue Imran Khan even though his client had not directly accused Ian of
cheating or of racism. He was making an offer which, if accepted by the
plaintiffs, would have buried the matter for good. Why was it not accepted?
Why was the golden opportunity to put the record straight turned down?
asked Carman. He said Ian Botham in his evidence called the offer a
"smokescreen".

Elementary checks: Allan Lamb says he was called a racist but why didn't
the plaintiffs in the last two years make "the elementary check of all" to
contact the India Today magazine. An "honest and respectable approach"
would have been to sue the magazine but this was not done, said Carman. The
plaintiffs without any shred of evidence rejected Imran Khan's offer,
without finding out what India Today had published.

In June 1994, the Sun published an interview with Allan Lamb with the
headline that Imran had thought Pakistani cricketers how to cheat. Allan
Lamb denies any responsibility for the headline. But Carman said the truth
is there for the jury to find. There was vitriol poured on Pakistan and
Imran Khan in the British tabloid Press. Imran Khan was pilbried by two
former England cricketers in the Sun and the Mirror. Was he not entitled to
a reply?, asked the defence counsel.

Here he gave the reasons for the failure of reconciliation attempts
because, in his view, the knives were out. Ian Botham and Allan Lamb were
not prepared to join and take the olive branch of friendship.

Going into the history of Ian Botham's two other libels one of them against
the News of the World and the other against the Mail on Sunday, Carman
pointed out that he was accused of drug taking and sex. Ian Botham settled
them and admitted that he had smoked pot while on tour in New Zealand. The
actions were not pursued and he also admitted to have lied.

The defence counsel was addressing the jury about a review of Botham's
autobiography Imran wrote in the Sunday Times when the court rose for the
day Carman was saying that there was no malice in the review as Imran had
discussed what Botham had himself admitted in the book that he had marital
problems and that he had badly treated his wife, Kathy.

As the hearing began this morning some points of law were argued by the two
counsels, the jury having been kept out. For the purposes of any damages to
be awarded the jury, when members returned to the court, were told that
India Today sells between 4 to 5,000 copies in the UK. The Jury also heard
the plaintiffs' wives, not cross-examined by Carman, give evidence to say
how distressed their husbands were after knowing about the allegations made
against them by the defendant. In his evidence lasting well over an hour,
David Gower said that Botham was not a bitter man but was somebody who had
achieved quite a lot on the cricket field. He was being questioned by
Charles Gray, counsel for the two plaintiffs. Allan Lamb, a friend of his,
he said, also had a lot of cricket left in him when he was dropped from the
England side.

David Gower said he has not even now read the India Today article, which is
at the core of the libel. But he told Gray that he wouldn't agree that
Botham and Lamb said what they did about balltampering because of racist
motives. Botham, in his view, was top of the list as a bowler in his time,
"a leading all round player". If he was asked to name three top England
bowlers he would include Botham in the list, said Gower.

TOP LIST: The counsel then drew Gower's attention to an interview in the
Sun in which Imran Khan was quoted as saying that some of the big names in
cricket cannot be said not to have indulged in ball-tampering some time or
the other. When asked if he would include Botham in the top list, Gower
said it would be difficult not to include Ian Botham and Bob Willis.

The witness was shown a clip, shown several times before in the court, from
the 1982 Lord's Test between England and Pakistan and was asked to say
what was Botham doing with the ball in the sequence. Gower recalled that
the ball had gone out of shape and Ian was trying to put it back into
shape. He did not think this amounted to any breach of the rules. "I
haven't seen Botham do anything contrary to rules of cricket." In his view
gouging the ball or scratching it was unfair and amounted to cheating.

In his cross-examination Carman, for the defence, wanted to know what Gower
thought of the tendency in the tabloid Press to make inflammatory remarks
about others. He gave the example of Euro 96 in which the German football
team was made a target. Gower said he would be against the strength of
their comments on such occasions. About the Pakistan cricket side he said
it had its ups and downs but they did beat England in 1992.

Violent remarks: Carman asked that a certain section of the Press made
violent remarks about Pakistan. Gower replied that it was up to the readers
to decide what they thought of them but he would certainly condemn such
attacks. He described Imran Khan as a highly respected cricketer and a
decent man in his experience.

Carman then asked about the letter that Imran wrote to him on May 16, 1994,
in which the defendant told him that certain remarks attributed to him in
the Iov Tennant biography had been taken out of context and did not portray
the defendant's views. Gower told the court that he wrote back on May 24
asking Imran not to worry and that he felt no hurt.

Gower was next asked about the evidence given on Monday by Bob Taylor, the
former England wicketkeeper, who had said that lifting of the seam was a
habitual practice with bowlers and had become part of the game, although it
is illegal. It has gone on, he had said. Gower replied: "It does happen but
whether it is habitual practice is a matter of debate". He agreed that with
some bowlers it is common practice but is not widespread.

His attention was drawn to opinions expressed by several cricket writers,
including Geoff Boycott and Christopher Martin-Jenkins, as well as the
present England captain, Mike Atherton, who say that picking the seam is
something that goes on. Mike Atherton in his book says that there is
nothing new in players altering the condition of the ball by picking the
seam. He also talks about the application of substances such as sun cream,
lip salve and hair oil to the ball to achieve extra swing. The England
captain advocates changing the law to allow an action players practise
tacitly to be accepted as part and parcel of the game.

Gower agreed that bowlers have been tempted to do all the things mentioned
in the court but it is all done surreptitiously. "It is not condoned but it
is accepted", he added. Gower admitted that some of the rules were
complicated giving rise to problems.

[Rizwan]

-------------------------------------------------------------------
D A W N W I R E S E R V I C E
-------------------------------------------------------------------

Week Ending : 01 August, 1996 Issue : 02/31
-------------------------------------------------------------------
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===================================================================
C O N T E N T S
===================================================================

-------------------------
N A T I O N A L N E W S
-------------------------

Call to avoid deadlock : CJ wants govt to implement judgement
Eight killed, 24 injured in Lahore gang feud
Test ban treaty : US, India hold private talks
Opposition okays plan to oust government
India-Russia talk on new defence package
US govt orders building of ćultra supercomputerĆ
Pakistan, US plan to increase commercial flights
Drug prices again raised by 38 per cent

---------------------------------
B U S I N E S S & E C O N O M Y
---------------------------------

How to stop this mad rush
Options for textile industry: modernise or perish
Is IMF ćinterferenceĆ desirable?
Proposal to sell 5% IMFĆs gold for debt relief
Govt plans to establish national grid company
KSE index breaks 1,500-point barrier
Stocks remain in bearish frame of mind

---------------------------------------
E D I T O R I A L S & F E A T U R E S
---------------------------------------

The President Marshal Ardeshir Cowasjee
Living in limbo Mazdak
The Marcos syndrome Ayaz Amir
Terrorism Omar Kureishi

-----------
S P O R T S
-----------

No worthwhile moves made By Pakistani attackers
Pakistan played much below expectations
PakistanĆs dramatic win in LordĆs Test
Pakistan fail to reach semi-finals
Botham, Lamb lose libel case against Imran

===================================================================
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N A T I O N A L N E W S
===================================================================
960801
-------------------------------------------------------------------

Call to avoid deadlock : CJ wants govt to implement judgement
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, July 31: Supreme Court Chief Justice Sajjad Ali Shah accused the
government of dragging its feet on the question of regularisation of judges
and suggested that a deadlock on the issue be avoided.

ôThe federal government is dragging its feet on the question of
regularisation of judges. Efforts in all sincerity should be made for such
implementation (of Supreme Court decision in transfer and appointment of
judges case) in entirety. Delay leads to deadlock which should be avoided,ö
the CJ told a full court reference held on the eve of the retirement of
Justice Chaudhry Fazal Karim.

He later told reporters that there were certain remedies available in law
to check violations of the Constitution. He asserted that the Supreme Court
decisions were binding and must be implemented.

Justice Sajjad Ali said the judiciary was committed to ensuring that the
Constitution be obeyed and to upholding the rule of law. ôWe judges have
taken oath prescribed in the Constitution that we will discharge our duties
and perform our functions honestly to the best of our ability and
faithfully in accordance with the Constitution,ö he said, adding: ôWe have
also taken oath to preserve, protect and defend the Constitution.ö

The CJ pointed out that Article 190 of the Constitution ordained that all
executive and judicial authorities throughout Pakistan ôshallö come in aid
of the Supreme Court. ôIndisputably, this is the command of the
Constitution,ö he said, adding that the implementation of the Supreme Court
decisions had to be made by or through the government or executive
authorities. He regretted that the government instead of fully implementing
the court decision was trying to wriggle out of it.

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960731
-------------------------------------------------------------------
Eight killed, 24 injured in Lahore gang feud
-------------------------------------------------------------------
Staff Reporter

LAHORE, July 30: Gangland warfare involving a former city councillor and
some ômujawarsö of the Data Darbar shrine killed eight innocent people,
including a child, and left 24 injured in the crowded Bilalganj locality of
Lahore.

Those killed in the carnage were participating in Eid-i-Milad-un-Nabi
festivities in the Malik Park area near the Data Darbar shrine, watching a
motorcycle show or receiving offerings from the former city councillor,
Tahir Nafees alias Prince, who barely escaped death in what was apparently
an attack aimed at him. Most of the casualties were from among young
people.

The killings took place when Tahir Prince, who was distributing ćniazö
among the residents of the area, was fired upon by the attackers, said to
be mujawars of the Data shrine. The attackers reportedly came on
motorcycles and a car and opened indiscriminate firing with Kalashnikovs
and other automatic weapons.

They were said to be avenging the death of one of their cousins killed in
London in 1994 ů- a crime in which Tahir Prince was implicated and for
which he underwent imprisonment in Britain. He had returned to Lahore about
four months ago, and tension had been running high with the rival party,
reportedly led by Mian Hamid Muajawar.

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960728
-------------------------------------------------------------------
Test ban treaty : US, India hold private talks
-------------------------------------------------------------------
Shaheen Sehbai

WASHINGTON, July 27: The United States displayed signs of visibly increased
confidence to achieve its goal of getting the CTBT signed by September this
year, indicating that ôprivateö negotiations were going on with India to
bring New Delhi on board.

ôWe believe that we can achieve this, and we look very much to China and to
India to help us achieve this,ö state department spokesman Nick Burns told
the regular briefing while commenting on the joint statement issued after
meetings between Secretary Warren Christopher and Russian Foreign Minister
Primakov.

ôFollowing his meeting with (Chinese foreign minister) Qian Qichen and his
meeting with the Indian foreign minister, the United States intends to
continue as a very high priority foreign policy matter our negotiations in
Geneva that are multilateral, as you know, to complete the agreement for a
Comprehensive Test Ban Treaty and to have it signed this autumn in the
United States.ö

Asked how the US would get around the Indian hurdle, Mr Burns said: ôWeĆll
continue our negotiations, continue our private discussions, and hope that
India will agree that India should not stand in the way of an agreement
that is so important to people all over the world.ö

Observers said the revitalised US hopes about CTBT could mean increased
pressure on the other threshold nuclear powers, including Pakistan and
Israel, if India were to somehow agree to either sign the CTBT or to soften
its opposition.

A serious debate has already begun in Pakistan on IslamabadĆs position on
the CTBT if India signs it, as many political opponents of the government
believe the Benazir Bhutto government was preparing to sign it even if
India did not.

South Asian experts say Pakistan should take a position beyond the Indian
position and it should declare its nuclear policy independent of New Delhi
because the current policy has, in their words, ôplaced all the Pakistani
eggs in the Indian basket.ö

They say Pakistan should link the signing of the CTBT to an amicable
solution of the Kashmir dispute, reduction of conventional military force
by India and signing of a no-war pact with India, guaranteed by world
powers.

Alternatively, Pakistan should seek a US nuclear umbrella and sign a
security pact with Washington against any Indian aggression, including
attacks on its borders by conventional or nuclear weapons, they say.

These experts warned against the possible chances of a bargain between
United States and India, as indicated by the state department spokesman.

They said now that the US was openly talking of ôprivate discussionsö with
the Indians, it was all but obvious that give- and-take sessions would be
held and New Delhi would try to cash as much of its cheques, including the
blank cheque handed to it by Islamabad in the shape of its ôIndia-first
policyö.

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960727
-------------------------------------------------------------------
Opposition okays plan to oust government
-------------------------------------------------------------------
Bureau Report

ISLAMABAD, July 26: A joint committee of the recently formed 15-party
opposition alliance finalised a plan to oust the present government through
agitation.

The committee has finalised its recommendations and these are being sent to
the Opposition Leader in the National Assembly, Mian Nawaz Sharif, Raja
Zafar-ul-Haq told Dawn.

Raja Zafar-ul-Haq, who is heading the committee comprising representatives
from all the 15 parties, however, refused to disclose the details of the
plan.

The plan would be considered at a meeting of the party heads likely to be
held in the first week of August, he said.

The committee has recommended that mass mobilisation campaign should be
launched forthwith for preparing a ground for a long march or a final
attack on the government, Raja Zafar-ul-Haq said.

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960731
-------------------------------------------------------------------
India-Russia talk on new defence package
-------------------------------------------------------------------
Correspondent

WASHINGTON, July 30: India and Russia are negotiating a new defence
production package which includes future aircraft co-production and weapon
technology transfer, according to officials in both countries, quoted here.

Indian and Russian defence officials now are exchanging views on proposed
projects with the intent of approving a package in November. Proposals
include potential licensing of Russian aircraft and ordnance technologies
for Indian co-production.

Reports said the new agreement could involve technology transfer for air
defence systems, ammunition, torpedoes, SU-30 aircraft, anti-missile
systems and other support systems for air, land and sea-based weapon
systems.

The new package is expected to cover a three-year period. It is to be
finalised by November 15, and once approved, co-operative projects could
begin next year, according to officials quoted here.

Co-production of weapons would fit with the philosophy of the new United
Front government which wants to bolster IndiaĆs indigenous defence
industry, experts said.

ôSelf- reliance in weaponry and defence technology is one of our top
priorities,ö said Indian Defence Minister Mulayam Singh Yadav in an
interview last week.

The drive for independence has been led by Abul Kalam, Indian defence
research and development secretary and director-general of state-owned
Defence Research and Development Organisation (DRDO).

The Indian government now plans to produce 70 per cent of its weaponry by
2006, as part of a 10-year self-reliance plan. Today the DRDO has achieved
30 per cent self-reliance in defence systems and spares, according to DRDO
officials.

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960728
-------------------------------------------------------------------
US govt orders building of ćultra supercomputerĆ
-------------------------------------------------------------------
Staff Correspondent

WASHINGTON, July 27: While working overtime to prohibit nuclear testing by
non-nuclear states under the proposed CTBT, the United States has ordered
building of an ôultra supercomputerö that would continue the testing of
nuclear weapons under simulated conditions.

The contract for the computer was given to the international giant IBM by
the federal government for $94 million, energy department officials
announced.

The computer would allow the US technicians to update and maintain their
nuclear stockpiles in battle-ready condition.

Many countries, including Pakistan and India, are insisting that all kinds
of nuclear testing, including those on simulated computers, should be
banned under the CTBT otherwise the less developed countries would be
placed at a gross disadvantage.

The computer, to be called DOE Option Blue, eventually will operate at
about 3 trillion operations per second and will have a memory of about 2.5
trillion bytes. Current supercomputers have about 10 billion bytes.

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960726
-------------------------------------------------------------------
Pakistan, US plan to increase commercial flights
-------------------------------------------------------------------
Shaheen Sehbai

WASHINGTON, July 25: Pakistan and US aviation officials will meet here on
Aug 13 to 15 to increase commercial flights between the two countries.

PIA will be trying to fly into Houston, Chicago and Washington while US
airlines will be given the stations they wanted.

ôNegotiations have been going on and meetings have now been fixed in
August,ö M. Nawaz Tiwana, managing director of the PIA, told a news
conference after speaking at a luncheon reception for prominent Pakistanis
and guests in Washington.

ôWe are very keen on extending our services to other cities in the US and
the prospects look extremely bright,ö he said.

Mr Tiwana said US airlines would also be given landing rights in other
Pakistani cities and PIA was not worried about the competition.

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960728
-------------------------------------------------------------------
Drug prices again raised by 38 per cent
-------------------------------------------------------------------
Sarfaraz Ahmed

KARACHI, July 27: The pharmaceutical companies have increased the prices of
both controlled and decontrolled medicines ranging from 20 to 38 per cent.
The new prices as notified by pharmaceutical concerns and made effective on
July 18 and 24, include a 5 per cent General Sale Tax announced in the
budget for 1996-97 by the government.

Those companies who have so far increased prices of their products include
Wellcome, Abbott, Bosch, Glaxo, Opal and Sami.

This is the third increase this year. First increase was made effective in
January, followed by another in May.

For the last many weeks, the supply of a number of both essential and non-
essential items remains disrupted, leading to black-marketing.

According to new lists issued by the multinational pharmaceuticals, the
prices of the items of common use including controlled items such as
Cefspan capsules and suspension (antibiotics) have also gone up.

Decontrolled items of common use include Polyfax skin ointment, Iberol-F,
Kaltin-AP, Optilets-M tablets and Pedialyte suspension. Interestingly, the
last item is an ORS given to children in loose motions, which has seen an
increase of Rs 7.82.

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INTERNET PROFESSIONALS WANTED

send your resume to

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http://xiber.com

960727
-------------------------------------------------------------------
How to stop this mad rush
-------------------------------------------------------------------
From M. Ziauddin

THE continuous erosion in the value of the Pakistani rupee against US
dollar has become self-perpetuating because of the relatively higher
earning potential of dollar deposits in contrast to that of Pak deposits.
Pak rupee bank deposits for one year normally carry a mark-up rate of 12.5
per cent.

However, after adjusting the earnings to 2.5 per cent of Zakat, 2 per cent
of withholding tax and 10 per cent of inflation, the earnings become
negative by at least 2 per cent.

On the other hand the dollar deposits for one year which normally carry a
mark up of 6.8 per cent are exempted from Zakat and withholding tax
deductions. And a potential to appreciate by at least 10 per cent per annum
against the Pak rupee, in view of expanding current account deficit and
galloping domestic rate of inflation, makes the dollar deposits more
attractive, increasing the earning rate of these deposits to around 25 per
cent.

And even after adjusting against a 10 per cent rate of inflation in
Pakistan where a major part of these deposits are in any case used, the
earnings on the dollar deposits still remain well above 12 per cent.

This unremitting escalation in profits on dollar deposits vis-€-vis Pak
rupee deposits, induces rupee depositors to convert their holdings into
dollar deposits without as much as a second thought causing the value of
the rupee to keep declining almost on daily basis.

So, as more and more rupees chase the dollars, the value of dollars against
the rupee keeps on escalating rendering the hard currency ever more
attractive for savers than the local currency.

The continued decline in the value of the rupee against dollar has made the
local currency seemingly fully convertible without any official
announcement to the effect and without the attendant gains like the
importer not needing to go to the State Bank to buy his dollar requirements
and the exporter not being required to surrender his dollars to the State
Bank.

One way of making the dollar deposits less attractive vis-€-vis the rupee
deposits is to levy zakat and withholding tax on the former. But that would
only cause the dollar deposits to deplete without in any way improving the
attractiveness of the rupee deposits.

Another way of tackling the problem is to bring the rupee deposit rates at
par with rupee advances rates, that is 24 per cent. But this will still
make the dollar deposits at least about 7 per cent more profitable than the
rupee deposits.

However, for the income tax payers, the profitability would go down to
about 5 per cent because they can adjust the 2 per cent withholding tax
against their final returns.

A five per cent spread between dollar deposit and rupee deposit would make
the entire exercise of converting the rupee deposits into dollar deposits
and back for use in Pakistan a cumbersome drill without much gain.

And in this situation, if an annual injection of $500 million of private
foreign investment is made, the chase would go in the reverse direction
with dollars chasing the rupees rather than rupees chasing dollars.

And in order to attract as much as 500 million dollars of foreign private
investment annually , the government would need to take some urgent
measures like reducing the banking service charges which have shot up to 7
per cent behind which the bankers hide their inefficiency and corruption.

However, the best way to arrest the foreign exchange rot is to bring down
the rate of domestic inflation well under 9 per cent in the next few
months.

Yet another way of reducing the attractiveness of dollar deposits vis-€-vis
rupee deposits is to bring the rates of rupee advances down at par with the
rupee deposit rate of 12.5 per cent.

This will cause a significant slow down in the rate of inflation because
the cost of money, the most important input in any production, will come
down steeply as a result.

The attempt to reduce the rate of inflation by curbing borrowing for
budgetary purposes has failed miserably because nobody seems to believe in
practising what he or she is preaching with regard to tight monetary
control.

Waste and corruption have become institutionalised. Ask a bureaucrat about
it and he will point his accusing finger at the politicians and the
politician in turn would pass the buck back to the bureaucrat.

Every one seems to think it his exclusive right to wallow in corruption
while criticising others who indulge in the same pastime of destroying the
country.

It is a vicious circle which probably only time can break. Meanwhile, the
government would do well to adopt measures to trigger an accelerated
investment activity in productive sectors so that more and more exportable
surpluses are produced.

In this connection, it will have to make capital for investment by the
private sector more economic while keeping a tight leash on borrowings by
the public sector to finance non- productive expenditures. Besides, it
should bring down the import tariff on raw materials and intermediaries by
a significant degree in order to enable the investors to fabricate products
for local consumption as well as for exports at costs within reach of most
of domestic consumers while making them highly competitive price-wise in
the international markets.

Lower rate of inflation accompanied by lower rates of rupee advances would
make the rupee deposits as attractive as dollar deposits rendering the
exercise of converting rupees into dollars on daily basis not as profitable
as it is today.

It will also help if in order to retire budgetary debt, dollars are not
imported at costly rates. When these dollars are converted into rupees for
short-term retirement of budgetary debt, the rupee does not gain much , but
when these rupees are converted back into dollars for re-exporting, the
rupee sheds at least a couple of paisa against the dollar causing further
erosion in the value of the rupee.

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960727
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Options for textile industry: modernise or perish
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By Sultan Ahmed

PAKISTANĆS textile industry, which has been passing through a sustained
multiple crisis, may fare far worse because of its failure to modernise
adequately and the stiffer challenges it will face from its fast
modernising competitors.

Not only are its traditional competitors like India and China modernising
their manufacturing process but also rather new entrants in the field like
Indonesia, Thailand and Vietnam. They have imported the latest textile
machinery from Germany, a major textile machinery exporter, in very large
measure.

The crisis is not the textile industryĆs alone but that of the national
economy as a whole after the country incurred almost a record foreign trade
deficit of $ 3 billion last year. Its exports fell to $ 8.6 billion against
the modest target of 9.2 billion dollars for the year. And 60 per cent of
PakistanĆs exports are cotton or cotton based products.

The crisis in the textile industry has such an awfully depressing impact on
the Karachi Stock Exchange that while 59 per cent of the 785 companies
listed on it are quoted below the face value of their shares, 73 per cent
of the 243 textile companies quoted on its are below their face value and
82 per cent of the spinning mills are below their face value, highlighting
the absolute shambles in which the premier industry of Pakistan is now or
has been for a long time.

The reasons for this enduring crisis are obvious. Textile mills accustomed
to getting cotton at subsidised rates are not able to get it cheap any
more. After the cotton output touched a peak of 12.9 million bales in 1991-
92 there was a large fall in production during the next three years which
kicked up prices and necessitated marginal imports as well.

Finally when production rose to 10.5 million bales or more, last year the
mills were forced to pay world prices for their cotton or import it at
higher prices.

The textile mill owners have also been under pressure from the nationalised
banks and DFIs to repay their long defaulted loans which many have not been
able to do as they partially misused them or had obtained large kickbacks
for themselves from machinery exporters and others at the time of setting
up of the mills. So many of these mills were born sick, and have become
even more so over the years with the banks losing more than their owners.

Many of them have not been able to get new bank loans, unless they had
political clout and meanwhile the interest rates have shot up to 22 to 25
per cent. The government wants to help the industry. In fact each
administration has come up with a comprehensive textile package, and at
times more than one, as the present government has done. But the malady of
the industry appears to have reached cancerous proportions.

If adequate remedies are not found, enforced and sustained the loss will be
more of the countryĆs than of the industryĆs, and we may export more and
more of raw cotton as we did in the 1950s before the textile industry began
coming up in a big way.

Surely, even otherwise we cannot boost our exports significantly and our
performance will be far below the modest targets set each year hopefully,
if we continue to export more of cheap grey cloth, towels, bed sheets and
tenting materials, apart from the low priced cotton yarn which in many
cases earns less foreign exchange than the total spent on its production
and the foreign exchange the raw cotton utilised for making the yarn would
have earned if exported straight.

During the visit of a group of Asian economic writers to Germany the German
Machinery and Plant Manufacturers Association with its headquarters in
Frankfurt released German machinery export figures for Asian countries.
They show that out of the textile machinery worth 2.6 billion Deutsche mark
it exported to Asia in 1995, Pakistan bought the machinery for just 72.5
million Deutsche mark, and India 548 million DM, which meant an increase of
58.7 per cent over its 1994 imports, while PakistanĆs import of the textile
machinery from Germany fell by 26.4 per cent over its 1994 imports. And
that happened despite the fact that India has its own textile machinery
manufacturing industry and the All-Pakistan Textile Mills Association has
been pleading with the government to allow textile machinery imports from
India.

Thailand imported textile machinery for 137 million DM from Germany in 1995
ů an improvement of 28 per cent over its 1994 performance, Indonesia 240
million DM which is an improvement of 54 per cent over its 1994 imports and
South Korea 296.4 million DM worth of textile machinery, which marked a
fall of 11.3 per cent over its 1994 imports.

Japan, which manufactures advanced textile machinery and exports a part of
it, imported from Germany textile machinery worth 142.3 million DM, a fall
of 8.7 per cent over its 1994 imports. While Japan and South Korea are
reducing the size of their textile sector as they had earlier over-
expanded, labour costs there had risen high, and their products are getting
less competitive in world markets.

Pakistan is the only major textile producing country which reduced its
import of textile machinery from Germany in 1995. And that has happened at
a time when there is a great deal of talk in Pakistan about the urgency for
our textile industry to modernise itself and opt for the higher value added
from the low or almost non-value added production.

Not cheap any more

It is easy to lash out at the cotton-based industries, as Qazi Aleemullah,
Deputy Chairman of the Planning Commission, did last week and assert they
could no longer sustain the national economy.

The textile industry, he said, got rewarded for its inefficiency through
cheap cotton, cheap credit and low-wage labour. The fact is that none of
the three cheap inputs is available cheap now. If more textile mills close
down, the loss may not really be of their owners, who have had their ample
rewards for long for small or negative investments. It will be of the banks
and DFIs which lent large sums to them, of the workers and of the country
which has wasted or allowed to waste precious resources cussedly for too
long.

The fact is that if the textile industry is not modernised quick and
enabled to withstand competition not only from countries like India and
China but also Thailand, Indonesia etc. which do not grow any cotton and
import it from China or other countries, the result can be disastrous for
us.

Until recently it was non-cotton-growing countries like Japan, Hong Kong,
and South Korea which manufactured and exported cotton textile but now
while they reduce their output, non-cotton growing countries like
Indonesia, Thailand, Vietnam and Bangladesh have joined their ranks and are
reducing our options.

Now what is Pakistan going to do when it does not modernise its textile
industry adequately and quickly, and all others are doing that? Commerce
Minister Chaudhri Mukhtar says Pakistan imported machinery for $ 2.5
billion in 1995-96 and out of that $ 600 million were for power plants.

If the power plants were excluded, PakistanĆs total import of non-
electrical machinery last year was below the 1994-95 figure of $ 2 billion
import of machinery in 1994-95. And if out of that large figure, import of
textile machinery from Germany in 1995 was for barely $ 48 million, which
marks a fall of 26.4 per cent over the 1994 imports, modernisation of our
textile industry is too slow and too inadequate while our competitors are
moving fast and in full measure in this area.

Ailing industry

PakistanĆs ailing textile industry needs far more attention that it has
been getting.

The future should not be allowed to become a hostage of the past, and good
investors should not be punished for the follies of the black sheep in the
industry and absurd or unrealistic official policies.

We have to make the best use of our cotton, manpower and the know-how to
have a larger share of the worldĆs trade than a mere 0.2 per cent.

The demand for creation of a separate ministry or division for textile with
a minister should be given serious consideration. That is far more
important than having a minister for trade fairs.

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960727
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Is IMF ćinterferenceĆ desirable?
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Muhammad Aslam

HOW much is the IMF-isation of the economy desirable? This is a big post-
budget issue being debated in the top business circles. Opinions vary, but
most agree that it is bad for the country and needs to be checked at the
highest level.

But how? This is a million-dollar question for the economic managers of the
country. Some of them might have ready answers to apply a temporary brake
to the developing economic crisis. But their options are limited. Some
maintain the economy has been mortgaged in return for the aid package. Some
even allege that the current role of the IMF may eventually lead to
political decision making and the consequent loss of sovereignty.

Nobody could probably deny the fact that the economy is in a bad shape.
Exports are not picking up to the desired level despite massive devaluation
of the rupee. Imports are becoming more expensive widening the trade
deficit to well over $ 3 billion last year. Foreign exchange reserves are
almost static at around $ 1.2 billion. The inflation stands in double
digits.

The slogan ôtrade, not aidö sees to have lost its relevance as the
government is already growing under the weight of mounting foreign debt of
$ 1.85 billion and the annual interest of $ 500 million on it. The country
could hardly rely on its unexploited economic strength to meet this
situation. It will have to look for new foreign aid in addition to the
legendary donors. The successive governments were unable to fulfil the
donors obligation.

That is where the role of the IMF begins.

ôPity a the nation whom others tell what self-reliance means and how it
could be achieved,ö said a leading spinner who owns half a dozen leading
textile mills. Apart from strict control over government spendings, there
could be many other options including judicious recovery of stuck-up loans
of Rs 105bn. This could lead to self-reliance.

Top trade and industry circles claim that some donor countries are making
conscious efforts to further cut the production base of the country and
make it an exporter of some primary goods. If his happens, it would turn
Pakistan into a dumping ground of export surplus of the developed
countries.

ôA look at the last decadeĆs industrial inventory shows that no big unit
based on the local raw materials was set up. But there are many multi-
billion plants including thermal power, synthetics, PTA and some others
basically based on imported raw materials,ö local corporate giants say.

Strong textile base

Pakistan has a strong textile production base (500 units) and is a leading
supplier of cotton years to the world. All spinners are not angels. They
have their failings. But in any case every year they earn foreign exchange
worth $ 5 to 6 billion for the country or about 70 per cent of the total
exports after adding value to the locally produced cotton, the mainstay of
the economy. ôHow the formidable textile sector is under foreign attack,ö a
leading economist is of the view.

The textile industry is being squeezed to put it on the ôsick listö as a
sequel to free trade in cotton without determining the size of the home
consumption. As a result, out of a bumper cotton crop of 10 million bales,
2.3 million bales were sold to foreign buyers.

The IMF officials say that the budget deficit figures are doctored as it
was 6.5 or 7 per cent and not 4.5 or 5 per cent of the GDP as showed in the
1996-97 budget. The prime minister also says that the Central Board of
Revenue has doctored the budget figures.

Our rulers ask top business to talk to the IMF if they want reduction in
taxes said a leading industrialist adding but why we should talks to them?
We have decided to fight out the threat to the economic sovereignty alone.

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960731
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Proposal to sell 5% IMFĆs gold for debt relief
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Muhammad Ilyas

ISLAMABAD, July 30: Interim Committee of the International Monetary Fund
will consider in its meeting next September the proposal to sell up to 5
per cent of the FundĆs gold, or 5 million ounces, to finance its part in
the Extended Structural Adjustment Facility (ESAF) and in a new initiative
to provide debt relief to the worldĆs poorest countries.

The current ESAF resources, says the latest issue of IMF bulletin ôSurveyö,
are expected to last until about 1999. ôWe are then faced with an interim
period ů between 2000 and 2004 ů for which the Fund does not now have
resources to support on-going ESAF operationsö or to finance the latest
initiative in collaboration with the World Bank.

The sale of gold has been proposed by the IMF Managing Director, Michel
Camdessus, to subsidise resources in view of the budget constraints faced
by the bilateral donors.

As, however, reservations have been expressed about using the IMFĆs capital
base, the modified proposal provides that in selling gold, the profits from
the gold sales would not be used; rather, the profits would be held and
invested, and only the interest income would be used to help finance the
needed subsidy.

ESAF, according to the report, will form the economic policy basis for the
IMFĆs operations in the proposed initiative which is likely to benefit 20
out of the 41 heavily indebted countries. However, ESAF in this operation
would carry ôgreater degreeö of concessionality than what is provided in
other operations at present, it is asserted.

These countries, explains the report, were in a situation where, even with
strong adjustment and reform programmes and the benefit of current debt-
relief mechanisms, their potential to service their external debt on an on-
going basis appeared limited.

The eligibility of countries for benefiting from this initiative would be,
among others, a debt-service ratio (debt-service payments as a percent of
export earnings) in the range of 20-25 per cent, and a present value of
claims not exceeding 200-250 per cent of export earnings.

Among the 41 countries, most of them in Africa, 8 have been categorised as
ôunsustainableö, and another 12 as ôpossibly stressedö. The remaining
countries now appear to be in ôsustainableö external debt positions,
meaning that current mechanisms would be sufficient. Even among the
approximately 20 countries that may be selected to benefit from the
initiative, their eligibility would be assessed case by case.

All the creditors ů bilateral as well as multilateral ů are expected to
take part in the initiative which may even include write-off of some or all
of their claims in respect of a selected country. From the Paris Club and
other bilateral creditors, the initiative calls for stock-of-debt relief at
the end of a prescribed adjustment period of up to 90%, instead of the 67%
stock-of-debt reduction granted to date.

The World Bank, according to the report, is considering providing
additional assistance during the second three-year phase of adjustment, in
the form of supplemental IDA allocations through grants. Similar mechanisms
would be considered also in IMF. A country that pursues this second phase
of adjustment, supported by a second three-year ESAF arrangement a Bank
programme, will be promised relief from both bilateral creditors and from
multilateral institutions in an amount sufficient at the end of that
process to assure debt sustainability.

This will involve a stock operation from Paris Club and non-Paris Club
bilateral creditors. If commercial banks are involved, they would be
expected to provide at least comparable relief as well. Multilateral
institutions will commit to providing the additional assistance necessary
to bring the total debt stock of eligible countries in net present value
terms, down to the threshold level, that is 200-250% debt to exports, and a
debt-service ratio no higher than 20-25%.

The IMF would use either grants or highly concessional loan operations to
bring about the desired reduction of the net present value of its claims,
while the Bank and other multilateral institutions would use
resources from a ômultilateral debt-reduction fundö which would be funded
from the BankĆs net income, from bilateral contributions, and possibly from
other multilateral institutions. Bank management has already recommended
that its Executive Board set aside $500 million this year for a special
trust fund to be used as the BankĆs initial contribution. Helping them
reduce their external debt burden to a sustainable level should help
increase investor confidence and remove one impediment to growth. But these
countries, stressed Jack Boorman, Director of the IMFĆs Policy Development
and Review Department, in an interview with the Survey, also need to
develop institutions of effective economic policymaking and address
infrastructure development problems, as well as problems of governance.

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960801
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Govt plans to establish national grid company
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Staff Reporter

ISLAMABAD, July 31: The government will set up a national grid company to
purchase electricity from private power generation plants and supply it to
different distribution networks which are being privatised, Chairman,
Privatisation Commission, Syed Naveed Qamar said on Wednesday.

Area Electricity Boards (AEBs) are being converted into corporate entities
and are being actively prepared for privatisation, he told a press
conference. In view of large scale operational problems in some of the
AEBs, the government has decided to hand over management control to
international companies, he said.

The management control will be awarded to the reputed companies for a
stipulated period of two years through a competitive process, he added.

Mr Qamar did not deny reports that AEBs of Lahore and Gujranwala had
already been handed over surreptitiously to an American company without
following any competitive process.

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960726
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KSE index breaks 1,500-point barrier
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Staff Reporter

KARACHI, July 25; The Karachi Stock Exchange index of share prices broke
the barrier of 1,500 points on Thursday, signalling the extension of bear-
run in the coming sessions.

The index was last quoted at 1,489.42 as compared to 1,524.90 a day
earlier, showing a loss of 35.48 points over the previous close and also

the weakness of the base shares.

A 35-point decline in the index means wiping out of the market
capitalisation about Rs 7 bn and it is a big single session loss.

The index has, over the week, lost about Rs 20 bn, pushing the total market
capitalisation to Rs 333 bn from Rs 353bn, telling how the values are being
eroded in each session.

The market capitalisation was almost stable around Rs 385bn for the last
about three months after the protracted bear-run overtook the market amid
either-way movement but seldom breach the barrier of Rs 370bn.

But heavy liquidation in the index shares over the last about four weeks
has pushed to new low levels and there are fears that it might breach the
Rs 300bn barrier during the next month, dealers said.

Analysts said the disturbing factor is that buying support is not coming at
the falling prices as investors are progressively shifting investment to
dollar and some other dollar-related modes of business.

ôBut this is very serious development as it points to the exit of foreign
buyers from the market and needs to be checkedö, they added.

The market decline was, therefore, again led by the multinationals under
the lead of high-profile issues such as Lever Brothers, Brooke Bond,
Hoechst Pakistan, Glaxo Lab, Colgate Pakistan, Singer Pakistan, Shell
Pakistan and Siemens Pakistan, which suffered fresh fall ranging from Rs 2
to 5.

Both the market leaders, Hub-Power and PTC vouchers also received heavy
battering and fell well over Rs 1.50 instead of mostly fractional changes
over the last about one year.

It also reflected foreign unloading in them and evoked sympathetic selling
on some other counters.

PSO also maintained its downward trend and lost another Rs 4 followed by
United Sugar, which fell Rs 4.80. Other notable losers were led by ICP
SEMF, Citicorp, Adamjee Insurance, Gadoon Textiles, Dewan Salman, Gatron
Industries and KESC, falling one rupee to Rs 2.75.

Some of the shares managed to recover modestly, major gainers among them
Telecard, Gillette Pakistan, Bawany Sugar and Bawany Air Products, EFU
General Insurance, and Shafiq Textiles, rising by one rupee to Rs 10.

The most active list was topped by PTC vouchers, off Rs 1.45 on 13.433m
shares, followed by Hub-Power, easy Rs 1.75 on 10m, Southern Electric,
lower 70 paisa on 0.597m, Dhan Fibre, easy 10 paisa on 0.491m and Dewan
Salman, off one rupee on 0.440m shares.

Other actives were led by FFC-Jordan Fertiliser, off 45 paisa on 0406m,
Fauji Fertiliser, lower Rs 1.25 on 0.416m, ICI Pakistan, off 40 paisa on
0.413m, LTV Modaraba, lower five paisa on 0.210m and MCB, off 75 paisa on
0.151m shares.

Trading volume swelled to 30.351m shares from the previous about 19 m
shares owing to brisk selling in PTC and Hub-Power.

There were 332 actives, out of which 199 fell, while 47 rose, with 86

holding on to the last levels.

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960801
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Stocks remain in bearish frame of mind
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Staff Reporter

KARACHI, July 31: Stocks remained in a bearish frame of mind on Wednesday
as investors were not inclined to make fresh commitments in the absence of
fresh positive news from the corporate front.

The opening was distinctly easy after the news of Lahore killing reached
the rings but the midsession saw revival of demand on some of the pivotals
and the consequent decline in selling.

The KSE 100-share index ended with an extended decline of 26.17 points at
1,455.77 as compared to 1,481.94 a day earlier, sending signals that it
could break the barrier of 1,400 possibly by the next week.

The current favourites, notably Hub-Power and PTC vouchers after early
decline did attract massive covering purchase after midsession limiting the
index fall to 26 points.

ôA 26-point fall in the index means a loss of Rs 4 billion in the market
capitalisation, which has dropped by well over Rs 16 bn during the last
four sessionsö, dealers said.

An idea of investor willingness to hold on to their long positions may well
be had from the trading pattern of PTC vouchers, which was massively traded
amid alternate bouts of buying and selling.

Although it managed to finish the session with a fractional rise of only
five paisa after falling earlier on heavy selling, and also managed to
limit further loss in the index owing to its heavy weightage in the 100-
share index.

Similarly, another leading current favourite, Hub-Power also came in for
strong support from the institutional traders in a bid to put the market
back on the rails but the attempt proved abortive.

Heavy selling in Dewan Salman on news of a substantial loss for the last
financial year blunted the sharp end if the market has one as it was marked
down by Rs 4.70 on a business of about 3 million shares.

All other polyester shares followed it and fell under the lead of Dhan
Fibre, Ibrahim Fibre, and Indus Polyester amid active selling.

Minus signs, therefore, again dominated the list, with some of the pivotals
being in the forefront under the lead of PSO and Dewan Textiles, another
share of the Dewan group of companies, which fell by Rs 41 for no apparent
reason or heavy selling.

PSO, however, suffered a biggest decline for the single session as it fell
by Rs 17 to close at the lowest bid of the day at Rs 358 on a business of
28,000 shares.

Over the last one month or so it has progressively declined from its recent
peak level of Rs 404, reflecting the general market conditions and
investors distaste for shares.

The other big loser was Siemens Pakistan, which fell by Rs 25.50 on
business of 600 shares. There was no negative news to which the sharp
reversal could be attributed.

Other big losers were led by Askari Leasing, ICP SEMF, Din Textiles, KESC
and some others, falling by Rs 1.25 to 2.75.

Other big losers were led by Wellcome Pakistan, Fauji Fertiliser, Engro
Chemicals, Glaxo Lab and some others but Dawood Hercules rose after being
ex-dividend at Rs 129 and finished at Rs 136.

The board of directors of Paramount Leasing has announced a maidend
dividend at the rate of 10 per cent for the year ended Dec 31,1995 but the
news at a time when the market was in deeper recession and failed to evoke
sympathetic buying in the leasing sector.

Gainers were few, reflecting the general apathy. However, United
Distributors maintained its upward drive on news of higher earning and
ended with a fresh gain of Rs 2.50 and so did Kohat Cement and some others.

PTC Vouchers topped the list of most active, up five paisa on 20m shares
followed by Hub_Power, steady 25 paisa 8.161m, Dewan Salman, off Rs 4.70 on
2.933m, ICI Pakistan, easy 15 paisa on 0.554m, Ibrahim Fibre, lower 50
paisa on 0.282m, KASB & Co, up 15 paisa on 0.227m and LTV Modaraba,
unchanged on 0.201m shares. There were some other active too. Trading
volume soared to 35.329m shares from the previous 16.483 m shares thanks to
heavy activity in PTC.

There were 319 active, out of which 176 shares fell, while 53 rose, with 90

Annual Subscription Rates :

960726
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The President Marshal
-------------------------------------------------------------------
Ardeshir Cowasjee

I WRITE about a very large piece of precious real estate, a large naturally
rich country of 44 million very poor people, whose leaders, their spouses,
and close cronies are very rich indeed.

Zaire covering 2,345,410 square kilometres (as compared to PakistanĆs
796,095 sq km) was once known simply as the Congo until in 1885 it became
the personal property of King Leopold II of Belgium when its name and style
was changed to ćthe Independent State of the CongoĆ. In 1908 it became a
Belgian colony which it remained until it was granted independence in 1960.
In 1971, as the personal property of President Marshal Mobutu Sese Seko
Kuku Ngbendu wa Za Banga (ôthe all- powerful warrior who, by his endurance
and will to win, goes from contest to contest, leaving fire in his wakeö)
the Democratic Republic of the Congo became the Republic of Zaire (meaning
ćriverĆ).

Joseph-Desire (as he was originally named) Mobutu was born in 1930. He
started life as a clerk in the finance department of the Belgian Congolese
army and contributed articles to the Leopoldville Press. After his
discharge in 1956, he became a reporter for the daily, LĆAvenir, and then
the editor of the weekly, LĆActualities Africaines. He joined LumumbaĆs
political party soon after its founding in 1958. The day the Congo gained
its independence in 1960, the coalition government of Kasavabu and Lumumba
appointed Mobutu chief of staff of the Force Publique (the army) and eight
days later that force mutinied, which led to the secession of Katanga and
the power struggle between Kasavubu and Lumumba. Lumumba was murdered,
Kasavubu took over and in 1961 appointed Mobutu commander-in-chief of the
armed forces. In 1965, Mobutu got rid of Kasavubu and took over the
presidency.

Thirty-one years later, the former sergeant now self-styled Marshal remains
President. He has worked hard at draining his country and amassing his
personal fortune, now estimated to be in the region of $ 5 billion. As a
rule, less than a third of the value of the countryĆs goods and chattels
and exports, and whatever else, is returned to the treasury ů the exporters
and the intermediaries are worthy winners of their Pride of Performance
awards.

The PresidentĆs authority mainly rests on his control of key security
forces, which totally ignore his government. The Civil Guard and the 15,000
strong Special Presidential Division (DSP) forces are exclusively under the
tutelage of Mobutu loyalist generals. Both divisions are better disciplined
and are paid with more frequency than the regular armed forces and the
gendarmerie. The Civil Guard, a police force trained to use police measures
as well as to combat terrorism, to prevent fraud in customs collections,
and to maintain order, is independent in structure. Members of all the
security forces prey on civilians without official rebuke. Undisciplined
soldiers commit numerous human rights abuses and criminal infractions,
including robbery, extortion and looting, on a daily basis.

The modern sector of the economy collapsed in 1991, and many parts of the
country have returned to barter systems in lieu of monetary exchanges.
Civil servants and military have gone without pay for periods of many
months. Subsistence agriculture is the mainstay of the economy and permits
the country and the poor downtrodden people to just survive the lengthy
crisis. Industry remains largely crippled. Lack of new investment, poor
roads, infrastructure and corruption ů which affects all segments of the
economy ů have contributed to the decline, especially in the profitable
mining and minerals sector. Easily smugglable diamonds and offshore oil
revenues constitute the countryĆs major source of foreign currency.

Mobutism is the national philosophy of Zaire. His name is sung in popular
songs, his sayings are recited. But the 44 million people have no great
fondness for him; they are merely doing what they are told and paying
homage to their chief. On the day the country is rid of him, they will
curse his name, burn his pictures, and pay allegiance to a new chief.

MobutuĆs excesses are extravagant. His overseas bank accounts are stuffed
with pilfered funds and his loyalty and concern is distinctly self-centred
and has nothing to do with national advancement. When he came to power,
Zaire was a country on the move and MobutuĆs response was to set out on a
spending orgy that made economistsĆ heads whirl, and to single-mindedly
pursue personal prestige and national grandeur.

On the human rights side, his record of excesses are also extravagant.
There is no respect for the integrity of the person, political and other
extrajudicial killings are rife, people frequently simply disappear;
torture and degrading treatment in custody are the order of the day.
Arrests and detention are arbitrary, and fair and public trials are denied.
Journalists and other media officials are intimidated, harassed, and
detained at the whim of the authorities.

Through it all, Marshal Mobutu insists (convincing those who allow
themselves to be convinced) that Zaire and its people are doing fine and
that the problems Western journalists write about are all illusory, merely
exhibiting their mediaĆs bias against Black Africa.

The hospitals cannot treat the sick for want of medicine, the schools
cannot teach the children for want of books. The evil Marshal, who leaves
fire in his wake, achieves it all with the greatest of ease, having
perfected the art of bribery and the splintering of the opposition, and
having over the years completely demoralised, subdued and politicised what
counted for the semblance of his countryĆs judiciary.

The United States, as it must do in its own supreme interests (ćTis our
true policy to steer clear of permanent alliances with any portion of the
foreign world ů GW, farewell address, 1796), continues its diplomatic dance
with Zaire. In the 1970s there were debates in the US Congress about
WashingtonĆs cosy alliance with Mobutu, but the official line was that
Zaire was economically and strategically important, that it was a counter-
balance to growing Soviet influence in Central Africa (as in the 1980s
Pakistan was considered to be against growing Muslim fundamentalism), and
that Mobutu, a staunch anti-Communist (as is Benazir considered to be a
staunch secularist) should be supported regardless of all shortcomings.
Consequently, Zaire in the late ć70s received nearly half of all aid money
the Carter administration allocated for Black Africa. Was Washington
helping a country develop, or was it merely buying the loyalty of an
autocrat?

The tempo has since changed. Washington deliberately kept the post of
ambassador to Zaire unfilled for a two-year stretch and since 1992, except
for humanitarian aid to private organisations, no US assistance has been
given. However, the recent appointment of an ambassador and the double-
speak uttered by a State Department spokesman clarifies current US policy:
ôMobutu is the chief obstacle to democracy in Zaire, as such he has the key
role to play. We are encouraging him and all the key members there to adopt
the reforms necessary for democracy.ö To which, Zairian Professor Georges
Nzongola-Ntalaga, from the safety of Howard University, sharply reacted:
ôIt does not make any sense to see Mobutu both as an obstacle and a force
of democracy. There can be no move towards democracy with Mobutu in the
way.ö

Inflation soars by the day. It ran at the figure of 370% during 1995 and is
estimated to exceed this figure in 1996. In 1993, a new currency was
introduced. The new Zaire was created which was equal to 3,000,000 old
ZaireĆs and a dollar could be bought for 1,194 ZaireĆs. By December 1994,
the dollar cost 3,275 ZaireĆs, in August 1995 it could be bought for 16,700
ZaireĆs, and in May of 1996, one dollar cost 35,000 ZaireĆs. But then, such
has to be the state of affairs when uneducated selfish leaders rob with a
will and there is no counter-force to check their greed. When nasty old
military dictator Zia fell from the sky in 1988, making way for democracy,
we could buy a dollar for around Rs 20. Now, thanks to the virtues of our
ćfreely and fairly electedĆ democratic leaders, it costs us double that
amount.

Relatively speaking, as colonialists go, the British were fair and square.
They left us with values which we have since lost. Led as we are now, and
surrounded by well meaning friends as we seem to be, what is there to
prevent us from going down the river, the Zairian way? Is the President
Marshal able to further tutor our leaders in the ways of safe investment?
And what can we, the faint-hearted 130 million, say to the famished 44
million that will encourage them to stand up for their rights?

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960727
-------------------------------------------------------------------
Living in limbo
-------------------------------------------------------------------
By Mazdak

WHEN did you last hear of a Pakistani scientist or engineer conceive,
invent or design something new, something that extends the horizons of
human knowledge?

Apart from the officially neglected Dr Abdus Salam ů the only Nobel
laureate for any of the sciences in the Muslim world, Professor Salimuzaman
Siddiqui, Dr Parvez Hoodhboy and Dr Ata-ur- Rehman, I cannot think of a
single innovative and original Pakistani scientist. In fact, we can draw
depressing parallels with the rest of the Islamic world where the same
intellectual inertia exists. How many patents have been issued to Muslim
inventors? How many scientific or mathematical theories have been
propounded by Muslim scientists? Even our so-called nuclear research at
Kahuta is derivative and imitative.

Take even the most mundane research that has immense and immediate
relevance to much of the Islamic world, and we find that it is taking place
in the West. For example, research into alternative sources of energy like
solar power and wind energy could greatly benefit us, and yet what have our
scientists and engineers achieved in this field? Or take desalination of
sea water, or even agriculture in saline or semi-desert areas. We have made
absolutely no progress, waiting instead for European (or Israeli)
scientists to give us solutions on a platter.

Last year, the World Bank suggested a number of economy measures to the
government. One of these proposals was to shut down the Pakistan Council
for Scientific and Industrial Research. When made public, this idea was
greeted in the Press with shock and horror. In fact, it was viewed as a
Western plot to sabotage research in Pakistan. And yet, if objectively
analysed, the output of the PCSIR over the years does not exactly inspire
confidence in the work being done in its laboratories. To a great extent,
this is not the fault of the Council staff: starved of funds, the budget
barely allows for salaries and utilities.

But the problem Pakistan and the entire Muslim world faces goes far deeper
than the mere shortage of funds: in many countries not afflicted with our
atrophy of the creative faculties, most genuine scientists would take their
training and talents to institutions where they are put to good use. Here,
they stay on for the sake of security as well as the fact that they have
few options. Ultimately, they become time-serving careerists who have more
in common with bureaucrats than with scientists.

The last decade has witnessed a remarkable growth in computer and
communication technology. How many Muslims have been at the cutting edge of
this change? True, one or two Pakistanis have done well abroad in marketing
computers and related products, but to the best of my knowledge, nobody
from this part of the world has made any significant contribution to the
rapid transformation which is changing the way we think and live and work.
Once again, the world is sprinting ahead, leaving the Muslim world far
behind. For centuries now, we have been reduced to the role of users of
technology developed elsewhere: nobody, including ourselves, expects us to
be inventors and innovators.

Clearly, the problem transcends the shortage of resources: several Muslim
countries are raking in ů and squandering ů billions of petrodollars, and
they could easily afford the costliest research equipment. But scientific
breakthroughs first take place in the mind, and it is here that we lag
behind. What we have lost somewhere along the way centuries ago is the
sense of wonder, the burning curiosity that lie at the heart of scientific
inquiry. This quest for pure knowledge for its own sake is driven by a
refusal to take anything for granted, and to question the most fundamental
assumptions.

By separating the state from religion, secular societies have permitted and
encouraged citizens to question, criticise and attack the state and the
social order without in any way involving the belief system. Extended to
the scientific establishment, this translates into young researchers
bending their efforts towards constantly picking holes in officially
endorsed theories without losing their jobs. At a lower level, students
questioning their teachers on everything under the sun without being
threatened with expulsion. To field these queries, professors have to be
well prepared. This constant ferment leads to a dialectic that results in a
restless drive towards exploring the frontiers of knowledge. It can be ů
and has been ů argued that change for its own sake is detrimental to social
stability; indeed, many Eastern societies have stagnated for centuries
because of this very assumption.

Here at home, we are caught in the dichotomy of wishing to make material
progress while at the same time preserving intact our exploitative social
order and decaying traditions. Unable to resolve this fundamental
contradiction, we are trying to prevent the winds of change from blowing
away the cobwebs in our minds while simultaneously paying lip-service to
the need for scientific advancement. This is in no way meant to suggest
that in order to make progress, we must give up our culture. However, we
will have to discard the irrational and unscientific attitudes that
currently dominate the national psyche. The highly successful and
competitive Pacific Rim nations have transformed themselves within a
generation by ensuring education and health care for all their citizens,
and by limiting their population growth to a reasonable and sustainable
rate. At the same time, they are investing heavily in research and
development. We are doing neither, and yet our fatuous leaders never tire
of announcing that we are going to join the ranks of the Asian Tigers any
moment now.

Basically, the rational approach consists in analysing issues objectively
and solving them using the tools of logic we have developed and
internalised. We in much of the Islamic world find this an uncomfortable
attitude towards life as it demands constantly questioning the status quo.
We would rather live in the past, dreaming dreams of past glory. Our
religious luminaries have a vested interest in keeping the masses as
backward as possible so that they can retain their grip on their benighted
intellects. Feudals want to keep progress at bay so that they can maintain
their lock on power. The monarchs and dictators who rule most of the
Islamic world certainly do not want aware and educated citizens to question
their right to govern. With all these interlocking interests striving to
keep their people in the dark, it is little wonder that scientific progress
is virtually non-existent.

Away from complex and expensive laboratories, the scientific approach I am
talking about also includes the schoolboy opening up his alarm clock to see
how it works; the eccentric inventor tinkering in his garage, devoting
years of his life and all his savings in developing a gadget which may have
no practical use; the amateur astronomer examining the stars from his
backyard through his small telescope, dreaming of discovering a heavenly
body which will be named after him. How many of us engage in these time-
consuming tasks just to satisfy our own curiosity?

Until we in the Muslim world regain our sense of wonder and stop taking
things for granted, we are condemned to remain in limbo, inhabiting the
backwaters of human progress.

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960728
-------------------------------------------------------------------
The Marcos syndrome
-------------------------------------------------------------------
Ayaz Amir

WHAT is the source of the anguish eating into the hearts of PakistanĆs
thinking men and women? The short answer to this is that they are worried
not so much by the skyrocketing prices of daily necessities or even by Mr
JafareyĆs budget as they are by the absence of any direction in the
nationĆs affairs.

Where are we headed? What kind of a Republic are we trying to build? What
are our national priorities? To these questions there are simply no answers
because what is being seen on the national stage is a series of plundering
expeditions carried out in the name of democracy and power. Forget about
the clich‰ that this is not what the country was created for. In no country
of the world, not even in a Haiti ruled by the likes of a Duvalier, will it
ever be publicly acknowledged that the purpose of government is the
systematic plundering of national resources. Yet since my generation at
least entered the portals of manhood, this is what we have been seeing:
politics and power being used as instruments for self-enrichment and
personal aggrandisement, there being no exceptions to this rule since
military men and civilian leaders have followed the same path.

Stalin, forget about his other faults, had few personal belongings at his
death: no more than a few suits and a couple of military uniforms. Ho Chi
Minh was a latter-day saint: perhaps too austere for our tastes but for all
that a model of self- denial and self-abnegation. Castro enjoys the good
things of life but the legacy he will leave behind is the Cuba he and his
comrades have created and not any personal possessions.

If these examples be considered as too esoteric in the American-dominated
world of today, consider a few others. Attlee had to write newspaper
columns to supplement his pension when he was no more prime minister.
Wilson during his long illness had to depend upon the daily allowances he
got as member of the House of Lords in order to make both ends meet.
ChurchillĆs estate at his death was not valued at more than a million
pounds. Even the Clintons will have no vast personal fortune to fall back
upon when they leave the White House.

But consider the Marcos or the Mobutu syndrome (Ardeshir Cowasjee having
written on the latter only a few days ago) which is to be found in all its
glory in tinpot dictatorships and Third World basket cases. Where this
affliction stalks any country, power becomes an end in itself: wielded not
for the public good but for lining oneĆs pockets and amassing huge fortunes
abroad. Marcos plundered the Philippines as Mobutu has plundered Zaire and
brought a rich country to the verge of chaos and disintegration. But then
Marcos and Mobutu are only metaphors in this argument. They represent a
tendency which is to be seen in all countries with a wayward destiny.

But even if the gods have a hand in this misfortune, the Marcos syndrome
does not cease to amaze. Power is a great gift because in the right hands
it is the foremost instrument of ordering or re-arranging human affairs.
This aspect of power puts it above even music and poetry. Nowhere in
NapoleonĆs correspondence is there a mention of Beethoven or Goethe who
were his contemporaries. But Beethoven dedicated his Eroica Symphony to
Napoleon (only to erase the dedication when Napoleon crowned himself
emperor) and Goethe speaks with awe of NapoleonĆs almost superhuman energy
in his ćConversations with EckermannĆ. To mention these events is merely to
indicate the position that the man of power has held throughout history.
Another example should serve to clinch this argument. For all the genius of
ancient Greece, the high point of Greek civilisation is still remembered as
the Age of Pericles, after the name of its greatest statesman.

And this precisely is where the matter falls because for power to create an
impact on human existence it must be accompanied by vision and
statesmanship. Consider then our predicament where power has been turned
into a sordid thing, an instrument for amassing wealth that an ordinary
shopkeeper or tradesman would envy. If there is a vision which walks the
halls of power in the Islamic Republic it is not of Pericles or of Akbar
(the very thought touching the heights of absurdity) but that of Duvalier,
Marcos and Mobutu.

That this should be so is a measure of our national tragedy because there
is nothing in PakistanĆs stars which condemns it to be a tinpot land or a
basket case, a Haiti or a Burundi. Judged by the usual standards, it is a
large country with human resources that, given the right prodding, can hold
their own with any other on the face of the earth. South Asians are
considered high achievers in the intensely competitive environment of North
America. There is nothing in their destiny which condemns them to be low
achievers in their own homelands.

Given these circumstances, is it all that far-fetched to say that the gift
of power in our country is a great privilege on whomsoever it is bestowed?
Yet look how this privilege is being exercised: not for the public good as
it should be but for personal pomp and glory. That unappeasable greed is at
work here is obvious. But in the shadows of this greed there also lurks a
terrible sense of insecurity. It is as if power is a watery thing and the
common good a mirage, of meaning only for lost travellers in the desert.
What matters above all, and that which gives significance to power, is to
insure against the future which is best done by grabbing what one can and
by taking commissions on the rest. This in essence is the Marcos or Mobutu
syndrome which has the Islamic Republic in its vice-like grip.

If there seemed to be some escape from this affliction, thinking men and
women in Pakistan, while suffering the present as best as they can, would
look to the future with hope. PakistanĆs current tragedy is that it has
well nigh exhausted the vast reservoirs of romanticism with which it was
born. Every experiment in the constitutional book has been tried but
stability continues to elude us. Every political choice on offer has been
tried with the only result of all this striving being that over the years
the Marcos syndrome has been buttressed with pillars of iron. Today to no
oneĆs surprise the business of government stands discredited as never
before.

Admittedly, there is much that is vibrant in this country. Step into the
countryside or any small town and you will see the industry and spirit of
enterprise which are keeping the wheels of national life moving. But what
is thwarting the Pakistani people from realising their destiny and carving
out an honourable place for themselves among the nations of the world are
the uses to which the exercise of power has been harnessed.

It is not that Pakistan is waiting for a Pericles. That is a fat hope
indeed. But what can even now turn around its affairs (because, whatever
doomsayers might say, we have still not crossed the point of no return) is
just a modicum of sincere and honest leadership. Not revolution or drastic
surgery ů alternatives which people in drawing rooms are much enamoured of
ů because revolutions do not come from the skies and they have to be worked
for with blood and sacrifice. Just a modicum of honesty and integrity. Yet
consider the Pakistani predicament that even though so little is needed to
bring about a healthy change in the nationĆs affairs, even that little is
not forthcoming. All we seem to be getting instead are variations on the
Marcos syndrome: great greed allied to supreme incompetence.

The budget, the Mirages whose acquisition will surely be the last straw on
the economyĆs back, the growing lawlessness in different parts of the
country, the problems with the judiciary, and the other things which fill
newspaper space are all items in the sum of the nationĆs distress. The
principal problem is one of national direction. Once that is hostage to the
ghost of Marcos and the living example of Mobutu, it becomes a daunting
task to struggle against other infirmities.

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960731
-------------------------------------------------------------------
Terrorism
-------------------------------------------------------------------
Omar Kureishi

THERE is no cause, no passion that is so stupendous in its righteousness
that it can justify terrorism, leave alone venerate it. There is no valour
in killing innocent men, women and children, no honour, no rewards here or
hereafter.

Terrorism is the political name that is given to mass murder but what makes
it different to murder is that it is random and targets the luckless, those
who happen to be in the wrong place at the wrong time. Terrorism is
indiscriminate in its callousness and even worse is cowardly. The man who
planted a bomb in the lounge of the Lahore Airport may himself have been
deranged or programmed for even hired killers are generally not so
barbaric. But since it was a meticulously planned, cold-blooded operation
those who were masters of the deed were professionals, an anonymous group
of men carrying out the murder, or attempted murder of anonymous victims.

Terrorism is the most impersonal of crimes, there is no interaction between
the perpetrators and the casualties, not even a nodding acquaintance
between the killer and the killed. In war, at least, the enemy is clearly
defined and those who fall upon the battle field can be said to have laid
down their lives for their country. No such citation is available for the
mangled bodies and debris from a terrorist bomb.

That there was a security lapse at the Lahore airport is stating the
obvious. Whether an airport can be made wholly safe is something else. An
airport is a public place and cannot be sealed off. Not only does it get
thousands of visitors but hundreds of people work there. This is not to
absolve the agencies concerned of laxness. Indeed, the instant reaction
after the bomb blast was an attempt by the agencies to shift
responsibility, in itself a sign that the security system is riddled with
imperfections.

Any visitor to an airport will be made aware of the overbearing manner of
the security staff but to be over-bearing is not the same as being
vigilant. Purely as an aside, it has not struck the VIPs that their lounges
are the most vulnerable, crowded as they are with a legion of flunkies who
invariably come to receive or see a VIP off. No one dare check them! But
the terrorists know that airports, bus stands, railway stations, markets,
hospitals, mosques, wherever a large number of people are apt to congregate
are soft targets. It is impossible to secure them. Are we then helpless?

IĆm afraid we are, as are people all over the world where the terrorist
wages his mad war. What is possible, however, that these acts of terrorism
should be condemned outrightly and unreservedly, without any ifs and buts
by all sections of the public including political parties irrespective of
their differences. An act of terrorism is an assault on Pakistan itself.
ThatĆs the only way to see the outrage of the bomb blast at Lahore Airport.

Unfortunately, the temptation to politicise these bomb blasts is too great
to resist and it has become almost de rigueur, a standard knee-jerk
reaction to score political points even before the dead are buried. It is
sad, as it is infuriating, that instead of uniting the people so that there
is a common resolve to combat terrorism, we begin to stone each other with
agitational platitudes and provocative pieties, blaming each other after
lip-service has been paid to condemning the ôhiddenö hand, I find it
astonishing to read that some opposition members have called for the
resignation of the government, the ostensible reason being its failure to
protect sensitive areas like airports and for good measure, almost as an
after-thought, the lives of poor people. What is the connection? How does
one follow from the other?

It would have made sense had a blue-print of a water-tight security system
been offered or it could have been satisfactorily proved that something
like a bomb blast would not have occurred had they been the government.
Should John Major resign because his government has failed to stop the
IRAĆs campaign of terror? Tony Bair would be laughed out of the Commons
were he to make such a demand. Should Bill Clinton have resigned because a
group belonging to some lunatic-fringe militia blew up a government
building in Oklahoma City or because TWAĆs flight 800 exploded in mid-air
killing 230 people? What about the security at JFK Airport? The Republicans
are not making hay.

There are any number of issues on which the government and the opposition
have different views and perceptions. We are not short of areas of
disagreement and perceptions. In a democracy, it is perfectly legitimate to
take the government to task. But there is a no-go area or should be that
comes in the category of the national interest and it is expected, if not
incumbent on all to make common cause. We are not that strife-torn or so
utterly divided that we cannot close ranks on something as evil as
terrorism.

Why not an All Parties Conference with a single item on the agenda ů
terrorism and how best to combat it. The message to our enemies would be
loud and clear. Sometimes it is possible to raise the level of politics to
the heights of statesmanship. And that is when we accept the geometric fact
that no part is greater than the whole. It does not matter whether the
initiative for such a conference is taken by the government or by the
opposition. It would be welcomed by people from all walks of life,
particularly since the victims of terrorism are likely to come from these
walks of life.

And if these terrorist acts are the work of a hidden hand, it might be a
good idea to start nabbing a few of the culprits. We must not give the
impression that we are clueless, in both senses of the word!

===================================================================
S P O R T S
===================================================================

960726
-------------------------------------------------------------------
No worthwhile moves made By Pakistani attackers
-------------------------------------------------------------------
Anwar Ahmad Khan Former Olympian

Pakistan faces the prospects of missing the semi-final line-up, after the
second successive loss in the Olympic hockey tournament in Atlanta. After
being beaten what should be called by a wide margin by Spain, the green-
shirted Pakistanis have gone down to Germany.

With just a couple of points from three games against their name, Pakistan
now has just an outside chance of reaching the semi-finals.

Yet Pakistan canĆt be written off. It has been a tradition in Pakistan
hockey to come from behind and win the championship against all odds. There
have been numerous occasions when Pakistan has ran away with the top
position, after a rather shaky start. The Pakistanis were planning to pack
up in the inaugural World Cup in Barcelona, Spain, in 1971, when Japan
stunned Holland and Pakistan was allowed to move into the semi-finals.
Pakistan went on to win the first World Cup.

The story was not much different in the 1984 Olympics at Los Angeles. By
restricting Holland, Kenya paved the way for Pakistan to come back into the
reckoning. And Pakistan proceeded to claim the gold medal.

Pakistan once again needs a miracle in Atlanta to take them through to the
victory stand. If Pakistan is destined to win, nobody would be able to stop
them from doing so. Argentina can surprise Germany or even USA can blow a
whistle upon a couple of its fancied rivals to create an opening for
Pakistan. It has happened in the past and thereĆs no reason why it canĆt
happen once again.

At the moment Pakistan is placed fifth in the group, with only hosts USA
behind. Spain, the giant killers, stay on top in Group A with three
successive victories while Argentina is positioned at number two. India and
Germany have three points each from as many games but the former stay ahead
in the points table due to better goal difference.

Pakistan played better against Germany, the defending champions, than they
had done against Spain a couple of days ago. But Pakistan were not good
enough to overcome the win-starved Germany.

Germany was under tremendous pressure, after having claimed just one point
from their first couple of matches. They needed to defeat Pakistan in order
to stay in the hunt for one of the medals. They achieved their objective
by sound planning.

Germany was successful in dominating the game, particularly in the second
half, they gave very little away. In fact they were able to dictate terms
after the break. I believe that the Germans were capable of playing even
better. In my opinion, they played only up to seventy percent of their
potential.

Pakistan made GermanyĆs task easier by not playing up to the mark. The
Pakistan forwards, frustrated by the strict man-to-man marking, failed to
come up with any worthwhile move. They could not initiate combined
movements, which could have tested the German defence.

Pakistan should have changed their strategy, when they were trailing. They
had to attack the Germans in order to upset their gameplan. But as it
turned out, the Pakistanis did not look threatening in their attacks due to
the negligible support of their half-line.

It has always been advisable to exploit the right half or centre-half as
the sixth forward, when the objective is to make inroads into a packed
defence. Since so such effort was made, the Germans were happy in keeping
the possession of the ball.

Centre-half Muhammad Khalid was not found up to the mark. I was expecting
right-half Muhammad Usman, who had performed admirably in the World Cup, to
rise to the occasion but he has been a disappointment so far. Left-half
Irfan Mahmood has also been struggling to make his presence felt in the
field.

I believe that Khwaja Junaid would have still performed the duties of a
half back more skilfully than these guys. Then I have failed to understand
the logic behind the omission of right out Asif Bajwa, who could have
proved an asset for the side. He was trained for this job for three years
but was not chosen for such an important competition.

In the absence of genuine wingers, the Pakistan forwardline had very little
chance of forcing a breakthrough. PakistanĆs spearhead Kamran Ashraf, who
is basically a dasher, did not get the kind of openings he was looking for.
Neither the wingers sent in crosses to him nor the inners fed him properly.

Another strong point of Pakistan in the past has been attacking the
opponents through the right trio. This could not function in the desired
manner.

It was amazing to see a seasoned player like Tahir Zaman missing a penalty
stroke in such an important game. He looked disturbed at having thrown away
the golden chance and it would have been in the interest of the team to
have rested him for ten minutes or so, taking advantage of the rolling
substitution rule.

Shahbaz Ahmed has looked just a shadow of his own self in this particular
tournament. Muhammad Shahbaz has yet to show his top form.

Goalkeeper Mansoor Ahmed, who is also the skipper of the team, did save a
penalty corner against Germany but he will have to perform even better to
inspire his team.

Pakistan has to win both its remaining league matches handsomely to stay in
the tournament. Both India as well as Argentina could prove to be tough
opponents so Pakistan will have to perform exceptionally well to overpower
them.

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960728
-------------------------------------------------------------------
Pakistan played much below expectations
-------------------------------------------------------------------
Anwar Ahmad Khan Former Olympian

Pakistan and India played out a goalless draw in the Atlanta Olympic Games
pool match on Friday. The nature of the result between the two countries
was for the first time in international hockey since the final of the 1958
Tokyo Asian Games. And like the late Pakistan inside-left Nasir Ahmad Bunda
drew out the then Indian goalkeeper Shankar Laxman from his charge, his
subsequent effort from point blank range unluckily went a trifle wide to
keep the slate clean. This time around, IndiaĆs centre-forward Dhanraj
Pillay connected a right winger Mukesh Kumar cross. However, he had to look
up to the heavens in disgust as the ball hit the near post and rebounded
into play for an identical scoreline.

It was the second occasion in Atlanta that Pakistan and India were engaged
in a drawn skirmish. The last time was in the pre-Olympic tournament held
in the month of April when the game ended in a two-all stalemate.

Pakistan had a highly experienced outfit in comparison to IndiaĆs, and as
the reigning world champions, started out as favourites to win the tussle.
But if that was not to be, it was simply because Pakistan played much below
expectations.

To begin with, it seems strange that Pakistan benched its regular left back
Naveed Alam, who also is pretty good in conversion of penalty corners, for
the all-important encounter. He was replaced in that position by Rana
Mujahid Ali, who has over a considerable period of time been playing as a
right back.

If one man who stood out in the entire Pakistan defence it was young right
back Danish Kalim. He was workmanlike in his approach and had an
outstanding game. Besides, his two penalty corner strikes of the four
Pakistan were awarded in both sessions, found the target but were
disallowed for not hitting the 18-inch board.

The Pakistan half-line comprising Mohammad Usman, Mohammad Khalid and Irfan
Mahmood were as usual listless and did not go up in support of their
forwards. But if there was one silver lining, it was the grand spoiling
role feigned by left half Irfan Mahmood who completely bottled up IndiaĆs
right winger Mukesh Kumar.

Coming to the Pakistan forwardline, the two new wingers Mohammad Sarwar and
Aleem Raza looked completely out of their depths at this level and are in
dire need of plenty of international exposure to come up to the required
standard. In a way, I expected a great deal from Mohammad Shahbaz, who was
inducted as the playing inside-left for the first time, but I am sad to say
he did not live up to the billing of former coach Manzoorul Hassan, who is
on record, having said: We have found another Shahbaz Ahmad.ö

Inside-right Tahir Zaman was altogether off-colour and when he was
substituted by Rahim Khan, the Pakistanis found some rhythm in their
attacks. A few chances were created but were muffed by Kamran Ashraf,
Mohammad Shahbaz and Shahbaz Ahmad. In crunch matches such missing is
simply unpardonable.

Reverting to IndiaĆs game, it more or less assumed the same pattern as
PakistanĆs. The defence was rock solid and held the Pakistan forwards at
bay for most part of the proceedings.

Nevertheless, India can feel proud of the fact that they have a splendid
left half in the making in Ramandeep Singh. He has a classic feeding style
and is also good in busting up a onslaughts in its bud.

IndiaĆs reliance on centre-forward Dhanraj Pillay to deliver the goods
faltered as he did not play in his position but kept inter-changing on
either flank. To add to that, he is not in the same class like former
Indian greats. Right winger Mukesh Kumar was the other man whom India
largely counted upon. But only one flick pass to Dhanraj had the stamp of
authority written all over it.

Although, there was a light shower in the first half the weather was very
pleasant for hockey.

Even though, both Pakistan and India played with the traditional Asian
flair with fluency of movement and without man-to-man marking, but lacking
were the thrilling moves witnessed in a number of epic past Pakistan-India
ties.

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960731
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PakistanĆs dramatic win in LordĆs Test
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Qamar Ahmed

LONDON, July 30: Waqar Younis and Mushtaq Ahmed, PakistanĆs formidable pair
of pace and spin attack, cut to smithereens EnglandĆs batting line-up to
give Pakistan a 164-run triumph on the last day of the first Test on Monday
at LordĆs.

The England overnight batsmen, Mike Atherton and Alec Stewart, resisted
firmly and with assurance up to the lunch time. However, after resumption
Mushtaq struck twice to dismiss both captain Atherton and Stewart with the
help of substitute fielders, who took excellent catches. Then the
procession started and the writing was lurid on the wall. EnglandĆs
inevitable defeat came shortly after tea time.

Pakistan have gone one up in the series with captain Wasim Akram
confidently claiming that Pakistan would clinch the series in the second
Test at Headingley, starting on Aug 8.

Once the second wicket stand of 154 between Atherton and Alec Stewart was
ended after lunch, England defences fell into bits as wickets fell and
their batting succumbed.

The last nine wickets fell for the addition of only 75 runs and that too
because of a 35-run desperate last-wicket stand between Ian Salisbury and
Simon Brown.

England having resumed the last day at 74 for one were well in control at
168, 20 minutes after lunch.

Mushtaq Ahmed, having conceded only 35 runs in his 25 overs without taking
a wicket despite some close calls for both Atherton and Stewart, then
struck while bowling round the wicket. From the rough the ball spun taking
the edge of AthertonĆs bat in the slip where Asif Mujtaba substituting for
Aamir Sohail took a fine catch. There was no stopping after that dismissal.
Later Stewart could not get his bat away from a delivery which rared off
his pad to the bat and in the hands of silly point Moin Khan fielding for
Inzamam-ul-Haq.

Their exit in quick succession, after Atherton had made 64 and Stewart 89,
was what Pakistan looked for. There was no stopping them as the rest
collapsed like a pack of cards and Pakistan clinched a well earned win just
before a delayed tea break.

AthertonĆs 278 minutes vigil at the crease in which he had managed eight
fours at one time appeared to have done the trick but trouble was in store
soon after his demise.

Nothing really can be taken away from Pakistan from their third Test
victory at LordĆs in the last four Tests since 1982. It was a team effort
in which everyone played his part.

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960728
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Pakistan fail to reach semi-finals
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Sydney Friskin

ATLANTA, July 27: Nearly 15,000 spectators gathered at the Morris Brown
College Stadium to witness the Olympic hockey match between Pakistan and
India and went away disappointed that no goals were scored.

There were those who appreciated the scientific possibilities of the game;
others thought it was all so pointless, statisticians were busy looking up
their records, attempting to find out when an Olympic hockey match between
these two great countries had ended goalless.

In short it was a match that promised much and achieved little. The upshot
is that neither Pakistan nor India will qualify for the semi-finals in
which Spain, after their 7-1 victory over the United States later in the
night, made sure of their place in the last four from Pool A. Germany seem
likely to accompany them.

India more than Pakistan needed the two points at stake. Had they won they
would have had a total of five with one more match to play against Spain
they would have been in with a fighting chance with a total of seven
points.

If Pakistan had won they could at most have finished their engagements with
a total of six points which would not have been enough. They could not pick
themselves off the floor after defeats by Spain and Germany.

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960801
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Botham, Lamb lose libel case against Imran
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Athar Ali

LONDON, July 31: By an overwhelming majority the jury in the High Court
libel action brought by two former England Test cricketers, Ian Botham and
Allan Lamb, against Imran khan gave its verdict in favour of the defendant.

The jury rejected claims for damages made by the two plaintiffs who alleged
that the former Pakistan captain in the media interviews cast serious
aspersions on them by calling them both racists and questioning their
upbringing. Botham also failed to convince the jury that Imran Khan had
accused him of ball-tempering and of cheating. The plaintiffs will have to
bear not only their own legal costs but also pay the cost incurred by the
defendant with some adjustments made for the withdrawal of the `plea of
justificationĆ made by Imran on the basis of two television clips from the
1982 Tests which sowed Botham handling the ball.

Botham and Lamb will have to pay an estimated 500,000 pounds in total
costs.

It took the seven men, five women jury more than four hours to reach their
verdict. When they returned to the court room, filled to capacity, the jury
foreman told the judge, Mr Justice French, that they had reached a verdict.
The court clerk asked the foreman whether on the action brought by Ian
Botham and Allan Lamb together that in an India Today interview Imran Khan
had accused them of racism and questioned their class and upbringing they
were for the plaintiffs or the defendant. ôFor the defendantö came the
reply in a hushed court room. The jury foreman was then asked if they had
reached a verdict for the plaintiff, Ian Botham, or the defendant in the
separate libel action brought by the England cricketer accusing Imran Khan
that he indirectly accused him of ball-tampering which under the laws of
the game amounts to cheating.

A sigh of relief was breathed by Imran who for a few moments was unable to
grasp what the jury foreman had said. His wife, Jemima, who sat next to him
on the front bench in the court room, wearing a maroon-coloured maxi, did
realise the importance of the moment and drew close to her husband. When it
became clear that the verdict had gone for the defendant, Imran looked
towards the courtroom ceiling with eyes almost full of tears of boy. He
hugged his wife and a broad smile appeared on his face, and the pale
complexion that he was wearing for the last two days due to tension soon
disappeared.

Outside the Royal Courts of Justice, where hundreds of people stood inside
the railing set up by the police in the expectation of verdict in the case
of the three cricket stars which had entered the 13th day today. Imran Khan
said he had been vindicated. He thanked God almighty for it.

The four-year-old ball-tampering controversy and the tabloid accusations
made against Pakistani cricketers in 1992 of cheating were revived as
witness after witness spoke about the ball-tampering controversy. Botham
was accused of an obsession with Pakistan.. Imran with passion defended his
position. He said he did not call anyone a cheat nor a racist. He was only
trying to bring into the open the ball-tampering controversy. He found
support from big names in the cricket world who said this has gone in for
as long as cricket began and is now an accepted practice. The controversy
will rage until resolved, as Imran said after and during the trial, but his
thirteen day ordeal in court in full public gaze and the worry of the last
two years when the libel action against him was brought has finally ended.