-------------------------------------------------------------------------------- DAWN Karachi 03 January 1997 Friday 23 Sha'aban 1417 US consulate to grant visa from Karachi ISLAMABAD, Jan 2: The consular section of the United States embassy in Islamabad on Thursday announced that one special category of immigrant visa applicants will be processed by the American consulate general in Karachi. The embassy advised the family members of asylum applicants already in the United States, who wish to apply for "following -to-join" visas should apply at the US consulate general, Karachi. Asylum cases currently pending at the Islamabad embassy have already been sent to Karachi. The announcement would be effective immediately. ---------------------------------------- Top politicians, bureaucrats to be arrested; FIA gets go-ahead ISLAMABAD, Jan 2: The FIA has been given the green signal to arrest some top-ranking leaders of the two main political parties, as well as some bureaucratic heavyweights alleged to have been involved in corruption. The first to have been picked up in this fresh crackdown have been Haji Nawaz Khokhar, a former federal minister, and Rehman Malik, who headed the FIA during the Benazir government. "A decision has been taken to arrest a number of politicians and bureaucrats who were involved in corruption and financial irregularities", said the interior secretary, A. Z. K. Sherdil. He told Dawn on Thursday that the FIA had been directed to arrest politicians and bureaucrats allegedly involved in corruption. Answering a question, he said a decision had been taken by the caretakers to arrest two of the former chief ministers of Punjab, Mian Manzoor Wattoo and Sardar Arif Nakai, on corruption charges. "Orders have also been issued to arrest the former commerce minister, Chauhdry Ahmad Mukhtar, former minister for information Khalid Ahmad Kharal, and Naheed Khan." He said cases against both Mr. Khokar and Mr. Malik had been registered. They were arrested during a break in the hearing of their bail cases. Mr. Malik had been on bail in one of the cases. Asked whether Shahbaz Sharif, Mian Nawaz Sharif's brother, former minister for food and agriculture Yousef Talpur and former minister for finance and ex-chairman of the Privatization Commission Naveed Qamar were among those who were to be arrested, Mr. Sherdil said no orders for their arrest had been received nor for that of former chief minister of NWFP, Aftab Ahmad Sherpao. Informed sources said that the decision to arrest politicians and bureaucrats was taken at a meeting between President Farooq Leghari and the chief of the army staff on Wednesday. Former minister and PML(N) leader Chauhdry Nisar called on the president on Wednesday and was told that there was going to be ruthless accountability and that no corrupt politician or bureaucrat would go unpunished. The sources said all the arrests were now being made on the orders of the Chief Ehtesab Commissioner, Justice Mujaddid Mirza, and the ministry of interior was not issuing such orders. Our Staff Reporter from Lahore adds: Former federal minister Mohammad Nawaz Khokhar was arrested by the Federal Investigation Agency during a short adjournment of Ehtesab proceedings in the Lahore High Court on Thursday. The ex-MNA from Islamabad was on bail granted by a judicial magistrate after the filing of a reference against him on Dec 15 last when no court except the tribunal established under the Ehtesab Ordinance was entitled to regulate his custody. The FIA did not seek renewal of his physical remand and the magistrate instead of releasing him straight-away, enlarged him on bail. The ex-MNA's arrest on Thursday was effected with the prior written approval of the Chief Ehtesab Commissioner as required by the ordinance. His counsel, advocate Raja Mohammad Akram, earlier verbally requested the court for interim bail, informing it that an application was being typed. The bail plea would now come up for hearing on Jan 6. Mr. Khokhar is likely to be detained and produced before a judicial magistrate in Lahore for remand. Meanwhile, the Federal Investigation Agency continued raids to arrest former federal ministers Khalid Ahmad Khan Kharal and Ahmad Mukhtar. According to the agency sources, they were wanted in two different corruption and loan default cases registered against them at the FIA headquarters, Islamabad. Following instructions from Islamabad, a team of FIA headed by an assistant director was reportedly assigned the task of rounding up the former federal ministers. Loan default charges have also been framed against another former federal minister Syed Faisal Saleh Hayat. According to FIA officials, loan default and corruption cases have been finalized against PML leaders Chaudhry Shujaat Husain, Parvez Elahi, PPP leader Jehangir Badar and two former Punjab chief ministers Sardar Arif Nakai and Mian Manzoor Wattoo. ----------------------------------------------------- Bike, car prices up by 17.8%, 10.46% respectively in '96 KARACHI, Jan 2: The prices of two wheelers and cars jumped by at least up to 17.86 per cent and 10.46 per cent respectively during the last one year. The twice rupee devaluation against the dollar (8.5 and 3.65 per cent), rise in the sales tax from 15 to 18 per cent and 10 per cent regulatory duty on imports have been cited as the main reasons for the increase in prices. It may be noted here that Yamaha YB-100 witnessed an increase of Rs 1,000 in the third week of December, despite an increase of Rs 800 already registered in the first week of November. A one year price review shows that Suzuki SR-21 two wheeler posted an increase of 17.86 per cent in its price, from Rs 56,465 in January, 1996, to Rs 66,552 in December, 1996, followed by 17.11 per cent in Shogun, from Rs 50531 to Rs 59,177, and by 16.72 per cent in Samurai, from Rs 48,829 in January, 1996, to Rs 56,994 in December, 1996. The YB-100 Yamaha became costlier by 13.22 per cent, from Rs 55,200 in January, 1996, to Rs 62,500 in December, 1996, A rise of 12.31 per cent and 12.63 per cent was registered in Honda CD-70 and CG-125, from Rs 55,200 and Rs 65,700 to Rs 62,000 and Rs 74,000 respectively. In the categories of cars, Suzuki Khyber (Standard) topped with 10.46 per cent increase from Rs 325,000 in January, 1996, to Rs 359,000 in December, 1996, followed by a rise of 9.86 per cent in its A/C version, from Rs 365,000 to Rs 401,000). Suzuki Margalla (Standard) became costlier by 9.1 per cent during the last one year, from Rs 435,000 to Rs 475,000, while its Glx and A/C versions, which were being sold at Rs 529,000 and Rs 485,000 are now being quoted at Rs 573,000 and Rs 517,000 respectively. The prices of Mehran (Standard and A/C) rose by 8 and 8.96 per cent as both were being sold at Rs 249,000 and Rs 279,000 respectively in January, 1996, as compared to Rs 269,000 and Rs 304,000 in December, 1996. The Bolan and Ravi in January, 1996, were being quoted at Rs 278,000 and Rs 237,000 respectively as compared to in December, 1996, when price was Rs 297,000 and Rs 248,000. The prices of Honda EXI and VTI increased by 8.1 and 7.78 per cent in the last one year, while the prices of Toyota XE, GL and GLI appreciated by 5.8, 5.72 and 6.2 per cent respectively. The Honda EXI and VTI were costing around Rs 748,000 and Rs 848,000 in January, 1996, as compared to December, 1996, when the price was Rs 809,000 and Rs 914,000 respectively. Toyota XE, GL and GLI were now being sold at Rs 634,000, Rs 739,000 and Rs 839,000 as compared to January, 1996, prices of Rs 599,000, Rs 699,000 and Rs 799,000 respectively. ----------------------------------------------- Hakim Zardari remanded in FIA custody KARACHI, Jan 2: Hakim Ali Zardari, ex-MNA and father of Asif, was remanded on Thursday in the custody of the Federal Investigation Agency by judicial magistrate, South, Hamza Khan, till Jan 4. He was arrested by the Commercial Banks Circle of the FIA on Wednesday night from his Clifton residence on the warrant No. BA-1/CEC/97 dated 1-1-97 issued by the Chief Ehtesab Commission. It was the first ever warrant of arrest issued by the Commission under section 16 (2) of the Ehtesab Ordinance. Under this section an accused may be arrested in certain cases "where a holder of public office accused of any offense under this ordinance is produced before a Judicial Magistrate for police custody under section 167 of the Code, such Magistrate, notwithstanding of the provisions of section 167 of the Code, shall not authorize the detention of such holder of public office in such custody for a term exceeding fourteen days in the whole". The judicial magistrate in his remand order wrote: "I have perused warrant of arrest of Hakim Ali Zardari issued by the Ehtesab Commissioner and in consequences to that the accused has been arrested and brought before me. Under the circumstances, accused is remanded to police custody up to 4-1-97". The magistrate also directed the investigation officer to submit the case diaries on the expiry of the remand. Sources said an assistant director of the FIA CBC was interrogating Mr. Zardari who were facing corruption charges in a land scam. They said Mr Zardari could be flown to Islamabad in two or so days for investigation into charges against him. The sources said the case against the father of Asif Zardari pertained to the allotment of a plot he had acquired in Rawalpindi for constructing a hotel. --------------------------------------------------- Pir Pagara predicts bout of martial law, not polls LAHORE - Functional Muslim League president Pir Pagara has predicted another bout of martial law in the country and said the elections may not be held on February 3. He said he was not taking part in elections because he did not believe the elections would be held. "That which had happened 18 years ago is about to be repeated," he said making a clear reference to the imposition of martial law. The FML committee adopted a resolution saying that elections held without proper steps to prevent rigging would be nothing but a fraud and a joke with the nation. To prevent rigging, the resolution said, complete accountability of the corrupt which should serve as a deterrent, fresh delimitation of constituencies and census should be held. It said, correct electoral rolls should be prepared and national identity cards issued to all voters. The resolution said that the FML was not opposed to the process of elections. Instead, it said, it was a staunch supporter of elections provided they were held after the steps proposed by it were implemented. The FML has allowed its candidates to take part in the elections in their individual capacity - not from the party platform - and for this purpose they will be free to make adjustments at the local level with any party they like. "There will be no regrets," Pir Pagara said of the party policy. When pointed out that the FML's policy on elections was in conflict with the approach of the CWC resolution,the Pir said he could not halt a process which was already going on. He said he wanted to impart political training to his party workers just like the army trains its troops. The Pir did not know how many candidates of his party were taking part in elections. Replying to a question about the Jamaat-i-Islami's boycott of elections, Pir Pagara said the Jamaat was ready to welcome martial law once again. "They are not boycotting the elections. They have always welcomed martial law and they are ready to welcome it once again''. The Pir said the Pakistan People's Party had approached his party for adjustments in Sindh. However, so far there was no progress in the talks although the two sides were still in contact. When pointed out that he had been branding the PPP as an ideological rival to his party, the Pir said in politics there was nothing called friendship or rivalry. "We are not away from any party to an extent that we can't meet again and we are not close to any party that we can't leave it." However, he made it clear that there was no possibility of cooperation between the FML and Mian Nawaz Sharif because the latter was not a trustworthy leader. The FML president said it was wrong to assume that the nation supported Mr Sharif who, he alleged, was the creation of the generals who were responsible for the ruination of the country. Asked whether he was satisfied with the arrangements made so far by the interim government to hold free and fair elections, the Pir said: "We are not satisfied with the caretakers. How can we be satisfied with their measures (withregard to elections)." Regarding the PPP claim that free and fair elections were not possible unless President Farooq Leghari stepped down, the Pir said the PPP would then have to accept Senate Chairman Wasim Sajjad as acting president. He saw no role for the Mohajir Qaumi Movement or Tehrik-i-Insaaf convenor Imran Khan In politics. However, he said there was nothing wrong in the Jewish lobby pumping in its money in Pakistan. He predicted a bleak future for those elected in the elections. "They will be elected only to be dismismed," he said. -------------------------------------------------------------------------------- Jan 4, 1997 Ghinva slams Benazir Islamabad - Ghinva Bhutto, chairperson of the breakaway Pakistan People's Party faction (PPP-SB), yesterday said that Benazir Bhutto betrayed the people confidence. Addressing her maiden public meeting at Jinnah Park, Ghiva lamented that the former premier deviated from the ideology of her late father, Zulfiqar Ali Bhutto, and dishonoured constitutional obligations. Moreover, she joined hands with the enemies of her father for the sake of power and wealth, the Lebanese-born Ghinva added. She said Pakistan was left totally isolated on the external front due to flawed foreign policies of the previous government. She added that the country's economy was about to collapse during the PPP rule. She vowed to bring back the era of prosperity and progress if PPP-SB was brought to power. She said, if voted to power, PPP-SB would establish a society based on justice, ensuring rights to all people. She asked the people to be aware of those elements who wanted to divide the masses on the basis of sects, religion and caste. She appealed to the masses to get united against such elements so in order to safeguard the country's interest. She pledged to make PPP-SB a party of the oppressed. -------------------------------------------------------------- Steps being taken to help MQM, says Meraj KARACHI, Jan 3: The caretaker Prime Minister, Malik Meraj Khalid, said that measure were being taken to provide relief to the MQM to enable it to contest the forthcoming elections. He said this during a brief conversation with the newsmen after addressing the Vlll council session of the Afro-Asian Peoples Solidarity Organisation. When his attention was drawn towards the grievances of the MQM in this regard, he said his government was doing everything it could and was of the view that the MQM would take part in the general elections. The prime minister dealt at length on the importance of moral and human values which had galvanised the Pakistan Movement and said owing to the erosion of those values the country was fragmenting from within. He said ethnic, sectarian, religious and other prejudices, which were anti-thesis of the Pakistan Movement, had divided the 130 million people of this country into "killer groups." "We are facing this ordeal because we have forgotten the universal message of Allah who has taught us to treat all human beings with respect irrespective of their cast, creed and religion," said the prime minister. He said the people should not blame external forces (Yehood-o-hunood) for their problems because their prejudices had encouraged corruption, lawlessness, terrorism, and price hike. He called for waging a crusade against the status quo powers who had thrived on these contradictions. At a time when attempts were being made to keep Pakistan subservient to the multi-nationals and international financial institutions, there was an imperative need for reviewing domestic affairs, he said. He was of the view that India too was passing through degradation of moral values especially in view of its track record of human rights abuses in the occupied Kashmir. India's persecution of Kashmiris as well as of the Muslim minorities spoke volumes about the lack of its respect for human rights, he said and added that peace for over 100 crore people of the subcontinent would remain a dream unless the basic difference between Pakistan and India were resolved. He was of the view that despite differences, SAARC was inevitable as it attempted to narrow down differences. In the written text of his speech circulated by the organisers, which he did not read, the caretaker prime minister had said that despite frequent changes in the political set-up, policy regarding nuclear disarmament along with a gradual disarmament in the field of conventional weaponry had been most consistent. "It is therefore particularly disturbing for us to live under the threat of an ever-increasing massive arms build-up around us, both conventional as well as nuclear. The Afro-Asian Solidarity Movement, he said, during its long struggle had tried to transform this tendency. In Pakistan also the movement provided a platform to work for promoting the cause of humanity. The prime minister said the Afro-Asian Solidarity organisation was the best forum in this regard. He paid tributes to S.M. Inam, president of Sindh section of the organisation and said in his person the Solidarity movement was bound to make great strides. The prime minister, who had been associated with the movement for over 36 years, suggested that fresh blood should be injected into it to provide energetic and honest relationship. Earlier in his welcome address, Mr Inam said the recent developments, specially those taking place since the holding of the VII Afro-Asian Solidarity Conference in 1988, had proved beyond doubt that economic development and independence of the countries was a sine qua non of the political development. ------------------------------------------------------- CM defends idea of shifting Sindh capital SANGHAR, Jan 3: The caretaker Chief Minister of Sindh, Mumtaz Ali Bhutto, has said that the country was on the brink of collapse when the government of PPP was dismissed. He told newsmen and the workers of his party, Sindh National Front, at the Irrigation Rest House on Friday that the PPP government was incompetent and corrupt. He accused the ousted prime minister Benazir Bhutto, her spouse Asif Zardari (MNA) and their cabinet colleagues of plundering the national exchequer and doing very little for the poor. He appealed to the people to vote for right persons and added that it would be a disaster for the country and the nation if the looters returned to rule through Feb. 3 elections. He invited the Urdu speaking people supporting MQM to forge unity with other communities in the province and launch a joint struggle for the betterment of Sindh and Pakistan. Mr Bhutto reaffirmed his pledge to shift Sindh capital from Karachi to Sehwan as done before in the case of Karachi and Islamabad as the country's capital. He observed the corruption had entered into the veins of the officials from the top to the bottom. So far, he added, 60 officials had been punished and more cases were being prepared to be sent to Ehtesab Commission. "Corruption is rampant in every department," he noted. Mr Bhutto said that every department, which underwent an screening, showed misappropriations amounting to million of rupees. Earlier, the chief minister had a meeting with divisional and district officials and was briefed on development projects. Abdul Hafeez Shaikh, Chief Engineer Sukkur Barrage told to the CM that Nara remodelling scheme would be completed in two phases. In first phase, he said, Rs150 million would be spend while the rest in the next phase. He said the name of Nara Canal will be changed to Bakhtawar Canal. DEMONSTRATION: The Mallah Tanzeem staged a demonstration against contract system here on Friday. However, the protesters were not allowed by district administration to see the chief minister. APP ADDS: Mumtaz Ali Bhutto has reiterated that all those living both in urban and rural areas of the province are Sindhis and they must forge unity among their ranks and jointly struggle for the welfare and development of Sindh as well as the country. He dispelled the impression that by establishing Sehwan Town as the capital of Sindh, Karachi was being handed over to others. He said such a move, if materialised, would not affect the importance of Karachi or the people living there. The administrative affairs of Karachi division, he said, could be run on same pattern being adopted for other divisions of the province. It would be an administrative policy in terms of defence and there was no political interest in this regard. Replying to a question about the election alliance with PPP(SB), he said that efforts in this regard were underway and some results would emerge soon. He said that it was his opinion that all political parties must get united and make a firm decision and unanimously support to those candidates who could have won the elections. About the ban imposed on recruitment's, the CM stated that he had relaxed it on essential vacancies which could be filled up by the respective deputy commissioners. He informed the newsmen that all out efforts were being made to provide adequate funds for all the ongoing schemes, which were pending due to shortage of funds during the previous government. He said that in future a comprehensive plan will be prepared for development schemes with arrangements to reserve funds so that these schemes could not be stopped on this ground. No new schemes would be prepared till the completion of all pending and ongoing development projects in Sindh province, he added. --------------------------------------------------- Move to cover up $25 million scam ISLAMABAD, Jan 3: The caretaker ministry of petroleum and the new bosses at the OGDC are allegedly attempting to hush up a 25 million dollar scam relating to the award of a contract for constructing a sulphuric acid separation plant at the Uch gas field. According to details, a 25 million dollar contract was awarded in the last quarter of 1995 by the OGDC to a company in Houston, the US, for a sulphuric acid removal plant to be located at the Uch gas field. Investigations have revealed that the Houston company sub-contracted the order to a Pakistani- owned private Singapore based firm which is a registered as an OGDC supplier of plant and equipment of many years' standing. This company has further subcontracted the order to another Houston- based firm which is reportedly negotiating with Dow Jones for purification chemicals; because , while this Houston company has the expertise to build the plant , it does not have the chemicals that are needed for separating sulphuric acid from the Uch gas. According to the latest issue of the international Oil and Gas Journal(September 30, 1996- page 79), this second Houston company is building the plant for Advantech of Balochistan. Inquiries have shown that no such company exists in Balochistan. The order, in fact, is for OGDC but sub-subcontracted to this second Houston company by the Singapore company which had received the job as a sub- contract from the first Houston firm. Oil and gas sources said that unless there was more than 100 percent margin in the original contract award, it would not have been possible for the original order to change three hands. When Dawn requested the federal petroleum secretary , Dr Gulfraz, for an explanation, he expressed his inability to recall the matter and held out an assurance that he would put us in contact with some senior officers in the OGDC for the purpose. He did not keep his promise. After waiting for more than a week , attempts were made to contact the caretaker minister of petroleum , Javed Jabbar, by telephone, but somebody on his behalf told Dawn that the minister was busy and that he would ring back as soon he could. So far he has not. So far the second Houston company is also said to have failed to convince Dow Jones to sell the chemicals to it because, according to informed sources, this company had allegedly asked Dow Jones to enter into a 25- year contract for the supply of the chemicals without any lid on the price it could negotiate with the final consumer. Smelling a rat, Dow Jones is said to have refused to supply the chemicals. Uch power project sources said that if the sulphuric acid removal plant was not ready within the next couple of months the commissioning of the power plant itself would be delayed by a year, costing the country immensely in lost power. The nearly 100-million dollar contract for the Uch gas field development project( Engineering, procurement and construction of Uch production of surface facilities) was also allegedly awarded under dubious circumstances. Tenders for the job were invited through a newspaper advertisement (published on May 4, 1995) within three weeks. Such tenders normally give at least 12 weeks for bidders to send in their bids as many of them have to consult their foreign principals and suppliers. The tender documents, spread over 3,000 foolscap pages, had also invited consolidated bids for the sulphuric acid removal plant along with the main bid. However, all those who purchased the tender documents were told verbally later (except one) to ignore the invitation to bid for the sulphuric acid plant. The one which was not instructed otherwise, bid for both jobs and was awarded a consolidated contract. The petroleum ministry objected to the violation of instructions as , perhaps, those in the ministry were not in the know of any under- the-table arrangement with the winning bidder and cancelled the part of contract which pertained to the sulphuric separation plant. The contractors went to court and got the entire contract restored, on the plea that, under the terms of the tenders, they had won both the contracts legally. In defence they quoted the following points( 32.1) of the notification of the award: Prior to the expiration of the period of bid, validity prescribed by the corporation, OGDC will notify the successful bidder by cable, confirmed in writing by registered letter, that his bid has been accepted. This letter ( hereinafter and in the conditions of contract called" letter of acceptance") shall name the sum which OGDC will pay to the contractor in consideration of the execution, completion and maintenance of the works by the contractor as prescribed by the contract( hereinafter and in the conditions of contract called " the contract price"). Notification of award will constitute the formation of the contract. Further inquiries have revealed that the company which won this consolidated contract was too little known in Houston itself to deserve the award of such a complicated and costly job. -------------------------------------------------------------------------------- 05 January 1997 Sunday 25 Sha'aban 1417 Meraj fears country's division in 20 years LAHORE, Jan 4: Caretaker Prime Minister Malik Meraj Khalid has said that Pakistan does no longer exists ideologically and warned that it was in danger of suffering fragmentation in next 20 years. Referring to a recent UN report which, according to him, stated that Pakistan would break into pieces in two decades, the caretaker prime minister prayed for a leadership to emerge that should infuse among the people a spirit to put Pakistan back on course visualized by its founding fathers. Malik Meraj Khalid was addressing a ceremony at which the book of Punjab law minister Syed Afzal Haider on "Vilayat-i-Faqih Imam Khomeini and the Revolution of Iran" was launched on Saturday. The caretaker prime minister said the way the ruling classes deprived the people of their rights to perpetuate their vested interests and reduced human beings to mere serfs, one was led to believe that "we have lost Pakistan in ideological terms despite its geographical existence". He said a recent UN report has led to a "horrible future of our country" fearing that Pakistan would be fragmented in next 20 years or so. As for the process of accountability, Mr. Meraj Khalid said some of the corrupt had been nabbed under electoral laws and many more would be arrested. "I don't want to mention here the limitations of the accountability process, but we certainly want that all the corrupt elements are prevented from being returned to assemblies". More important in the present day context, said the prime minister was that 130 million people of the country should to rise in a rebellion against those who usurped their rights. "This rebellion will be their (the people's) right in the words of Mao Tsetung as they stand deprived of socio-economic justice and a society has come into being in Pakistan where permanent values like truth, humanity and piety have lost their meaning". Comparing the systems in Iran and Pakistan, he said both the countries had Islamic ideology as their base but they were poles apart in implementing the divine message. In Pakistan the successive rulers negated the eternal commandments resulting in a sharp conflict between the words and deeds resulting in a society where people had been divided on the basis of ethnicity, communities, cast and creed. It was a complete deviation from Islamic teachings which give freedom to human beings to lead their lives according to their beliefs. The prejudices gave birth to sectarian hatred which had gripped the country so forcefully that human beings were being killed in the name of Islam. The minorities were so scared that they did not feel the courage of airing their grievances. Praising the Iranian revolution, the prime minister said it was one of the greatest rebellions of the common man against the imperialist forces and their local agents in the recent history. Its message was so loud and clear that people from all walks of life got united under the dynamic leadership of Imam Khomeini to retrieve their rights from usurpers and also punish those guilty of subjecting them to exploitation. The revolution was complete in the sense that its leaders gave an alternative system with all details which were necessary to transform the hearts of the people. Punjab law minister Syed Afzal Haider, author of the book, said the main objective of his effort was to make the world believe that Khomeini's revolution was neither an Iranian revolution nor a Shia revolution but it was a genuine Islamic revolution. ----------------------------------------------------- Foreign loans linked to Feb 3 polls, says Meraj HYDERABAD, Jan 4: The caretaker Prime Minister, Malik Meraj Khalid has painted a very gloomy picture of Pakistan and said that due to the destruction of all human and moral values, lack of commitment and sincerity of purpose, the country had reached at on verge of destruction. He was speaking as chief guest at the Pakistan Agriculture Conference, jointly organized by Sindh Abadgar Board (SAB) and Pakistan Kisan Board (PKB), at a local hotel here on Saturday. The PM said that all the institutions had been destroyed, the ideology of Pakistan and Islamic values had been discarded and justice had become a misnomer. About foreign loans, the prime minister said such loans had become the hallmark of every government over the past few decades and added that things had reached such a stage that the entire national income was hardly enough to pay back the interest on these loans. He said the caretaker government had also been obliged to borrow money because it had only two options - to save the country from utter bankruptcy or to burden the people. He disclosed that one of the conditions of these loans was that the elections should be held on schedule. He said that during the last 60 days, he had seen only darkness in all the departments. He said no wonder a UN expert had declared that during the next 20 years Pakistan would be divided into 20 different ethnic, sectarian and racial groups. This was in spite of the fact that 13 million people of the country were a great power and were imbued with immense creative capabilities and the country had abundance of resources, he added. The premier regretted that much smaller countries, like Cuba, were more prosperous than Pakistan. He observed that Pakistan was among the nine countries declared a 'security risk' to world peace if the percentage of literacy was not improved. He said while the other eight countries had improved their educational system, Pakistan was lagging far behind. He called upon the people to think deeply why the president of Pakistan had been compelled to dismiss the government of his own personal friend and former party leader. Malik Meraj remarked that the caretaker government could not bring about miracles within 90 days and cleanse the dirt of the last 50 years. He reiterated that despite speculations, general elections will be held on Feb 3, come what may. He said there was only one reason for the country's predicament and that was deterioration in all human values. He claimed that what the caretaker government had achieved in 60 days, no other government could achieve it in five years. The prime minister said that all the financial institutions were looted and had become sources of luxuries. He said the system evolved by the caretaker government to save these institutions was foolproof and only a "Satan" could convert these institutions to his own personal use. He said his government had appointed 14 task forces to set all departments including Education, Industry and Judiciary on the right course. He severely criticized the 'killer groups', who had created hatred among the people on the basis of color, caste, creed, religion and language. The prime minister said that no department or institution in the past was free from pressure including judiciary, Press, legislature and the administration. He said bureaucracy was the heart and soul of administration but it had been rendered absolutely ineffective through harassment. He said: "Pakistanis will have to take back their Pakistan by infusing the spirit of the Pakistan movement." Referring to the points raised in the memorandum by the president of the Sindh Abadgar Board Syed Ali Mir Shah, Malik Meraj Khalid said that he was well aware of these problems as he himself was the owner of six acres of land. He said a fully autonomous Agriculture Task Force has been appointed to look into and resolve the problems of the farming community. Speaking on the occasion, the federal minister for Food and Agriculture Senator Shafqat Mehmood said that the agriculture sector contributed 50 percent of GDP (gross domestic product) yet this sector had been neglected. He said it was an irony that an agricultural country like Pakistan had to import 2.4 million tons of wheat due to wrong policies. He said revolutionary steps will have to be taken in this important sector for our survival. He said a comprehensive national drainage plan had been chalked out to combat the menace of water-logging and salinity and added that this plan would be accomplished within the next few years. The senator said that the caretaker government had also chalked out a program under which 10,000 channels, instead of 2,000 to 4,000, would be lined per year. He said the laser technology will also be improved. The record of rights should not be the exclusive monopoly of patwaris, he said while stressing the need for community participation in this important field. He agreed with the president of Sindh Abadgar Board that the prices of all the other agricultural products, except for cotton, were not judicious and said that in order to give a boost to wheat production, the price of DAP should be brought down and of wheat should be increased. Mr. Shafqat said that unfortunately the budget deficit had reached such a height that the caretakers were confronted with financial constraints. He sarcastically said that the caretaker government could not resort to printing of more notes which had made the country all but bankrupt. The president of the Pakistan Kisan Board, Chaudhry Imdad Ali and the president of the Sindh Balochistan Rice Mills and Traders Association, Gadda Hussain Mahesar also spoke on the occasion. In his 12 page lengthy address of welcome, the president of SAB and the convener of the Agriculture Conference Ali Mir Shah underlined the problems of the Abadgars which included the menace of water logging and salinity, lining of water courses, precision leveling of lands, use of mechanized farming and low prices of crops. A large number of agriculturists including President of the Sindh Chamber of Agriculture, Syed Qamaruzzaman Shah, Raees Abdul Majeed Nizamani, Mir Ejaz Ali Khan Talpur, Mir Rafiq Talpur, Shahabuddin Shah Hussainy, Maulana Jan Mohammad Abbasi and officials of Agriculture department attended the conference. The prime minister was presented traditional Sindhi Ajrak and cap by Mir Ejaz Ali Khan Talpur of Hyderabad. ----------------------------------------------------- Nominations of Babar, Imran challenged KARACHI, Jan 4: The two-member election tribunal for Sindh has summoned Gen. Naseerullah Babar and Imran Khan, two of the candidates from NA-184, Karachi West, for appearance on Monday on a petition filed by their rival, Mian Ejaz Shafi. The appeal has been filed by the candidate saying that his rival candidates from the constituency have misdeclared their assets and that their nominations ought not to have been accepted by the returning officer of the constituency. The tribunal, comprising Justice Kamal Mansur Alam and Justice Ali Mohammad Baloch, has fixed the appeal for Monday and summoned both the candidates, Maj-General Naseerullah Babar and Imran Ahmed Khan Niazi, and also the returning officer of the constituency, who is an additional district and sessions judge, Karachi West. Both the appeals have been filed on behalf of Mian Ejaz Shafi by his counsel, Raja Qureshi. In one appeal against the former interior minister, it has been stated that he misdeclared his assets and has evaded the payment of wealth tax on his own showing. Secondly, the retired major-general has declared owning a Mercedes car of 1988 model valued at Rs 1.6 million and he has applied for an exemption certificate not to pay duties for the car. This car, according to the appellant, was smuggled into Pakistan from Afghanistan and the CBR had initially refused to issue an exemption certificate to him, but later on, due to political pressure, the chairman of CBR had allowed the issuance of an exemption certificate while orders are noted by the officer concerned in the file maintained by the CBR, for which a separate application has been moved before the election tribunal, summoning the record of the CBR. The third point which the appellant has raised is that the former minister is known to be a collector of antiques which could be sold or exported with the permission of the competent authority and he has not disclosed the value of those items. About Imran Khan, the appellant has submitted that he has concealed his foreign assets such as an apartment at Knight Bridge, London, and an apartment in Manhattan, New York. Further, he has not declared the assets held by his "esteemed" wife, who is the daughter of world's richest man, and reliance was also placed on the birth of his daughter which is verifiable through the medical process of DNA testing, and, therefore, his conduct doesn't fall within the parameters defined under Article 62 of the Constitution. Therefore, Mian Ejaz Shafi has contended that his nomination papers ought to have been rejected. ---------------------------------------------------- Pakistan move to end discretionary powers of officials ISLAMABAD - The caretaker government of Pakistan has decided to do away with the discretionary powers of government leaders and officials, including the president and the prime minister. Official sources said here yesterday a law had been drafted to remove these and other such powers vested under the provision of "in relaxation of rules" in the president, the prime minister and others. A high-level meeting has been convened for today at the Ministry of Law here to approve the draft law, which seeks to eliminate powers ranging from allotting plots to giving funds to people. "We hope to forge a consensus on the draft, after which it will be sent to the cabinet for approval," said an official. The president might issue an ordinance in this behalf shortly afterwards, he added. The sources said the draft law also sought to remove the discretionary powers of the governors, chief ministers and provincial ministers. It also called for scrapping the limited powers enjoyed by the local government through which the lower level elected people (chairmen and members of district and union councils) operate. The discretionary powers, he said, had been grossly misused, resulting increased corruption and destroying financial discipline. "The president has already surrendered his discretionary powers, and now is the time that such powers exercised by the prime minister, ministers and high government officials must be withdrawn," he said. The sources said the caretaker Prime Minister, Malik Mairaj Khalid, had instructed officials of the Ministry of Law that all his powers aimed at benefiting individuals must go and that nobody should be allowed to misuse these powers under the garb of "in relaxation of rules". The draft law also provided as to who would enjoy such powers and under what circumstances. Primarily such powers were proposed to be totally eliminated but in certain cases they may exist for which there would be a committee. "It would be specifically defined in the new law as to who would have such limited powers to deal with highly deserving cases," said an official dealing with the draft, which has been prepared on the instructions of the caretaker prime minister. The prime minister's adviser on finance, planning and economic affairs, Shahid Javed Burki, who has fully supported this draft law, is said to have requested the president and the prime minister to ensure that the proposed ordinance was converted into law by a future government. -------------------------------------------------------------- Imran annoyed at Sita White's threat Islamabad - Suddenly it looks like elections for the British House of Commons are being fought in Pakistan. The appearance of Sita White, daughter of Lord White, at the centre stage of the Pakistani election drama, shows once again how far the voters have a raw nerve on matters of, love-children like Sita's daughter, Tyrian, allegedly the result of an affair with Imran Khan. It has added considerably to the already Byzantinian ways of the local politics. Stories are pouring in from London, Los Angeles, New York, Paris and wherever the jetset haunts and homes are. Imran Khan is visibly annoyed with Sita White because of her reported threat to land in Pakistan with her daughter and confront the cricket-hero-turned politician at a news conference. He is annoyed with the political opponents for speaking about the affair in their public rallies. He is irked by the press which have started playing it big on page one - some newspapers giving more than one story a page-one treatment. "My alleged scandal with Sita White is a brainchild of Nawaz Sharif and his disciples," he said of former prime minister of Pakistan against whom Imran Khan is contesting the parliamentary elections in his home constituency of Lahore - the city where fate of future prime minister of Pakistan is decided. Khan said, "I have never been involved in any affair of any sort with the British lady." Khan's newly-formed Tehrik-e-Insaaf (movement for justice) party is contesting the parliamentary polls for the first time. He and his party candidates are opposing both Sharif and former prime minister Benazir Bhutto and their Pakistan Muslim League (PML-N) and Pakistan People's Party (PPP) candidates respectively. He describes both Sharif and Benazir as "looters of Pakistan's wealth" and of large scale corruption during their tenures as prime ministers. Sharif and Benazir strongly deny such allegations. Both Sharif and Benazir, themselves bitter foes in the election, describe Imran Khan as an electoral light-weight and no serious threat to their vote banks. But given the ways of Pakistani politics, you never know. Especially because of Khan's curiosity value in politics and what he can - or cannot - do to improve the lot of the poor. Many question his claim to fame in politics, or even criticise him for running for the parliament without as much as having a genuine election programme or a plausible manifesto. Pakistanis heard of Sita White for the first time in 1995 on the eve of Imran Khan's betrothal to Jemima Goldsmith, daughter of British tycoon Sir James Goldsmith. Allegations are now being made at public rallies and in the press regarding Sir James injecting u50 million into his son-in-law's election campaign. Imran Khan and Sir James strongly contradict them. The politicians and newspapers are hungry for news about Sir James, his personal lifestyle, his weddings, loves and politics. "The scandal-mongers are afraid of my popularity among the masses and have started a character assassination campaign against me. The overwhelming response of the public to my leadership has badly disturbed my antagonists. That is why they are making frantic efforts to check my party's victory in the coming general elections." -------------------------------------------------------- Ruthless action planned Lahore - Pakistani authorities have approved a plan for starting a ruthless accountability process by arresting corrupt politicians and bureaucrats in order to recover government dues and and bank loans before the February 3 elections. A comprehensive strategy in this respect was evolved at a meeting held at the governor's house in Lahore with President Farooq Ahmed Leghari in the chair. Caretaker Prime Minister Malik Meraj Khalid also attended the meeting and gave various proposals for completing the process of accountability before the elections. Top officials of the military and civil intelligence agencies conducted a briefing on the latest law and order situation. They also apprised President Leghari of the global situation. Authorities are apprehending major acts of sabotage before the polls. Official sources told Gulf News that Leghari has issued directives to ensure peace before and after the polls. Meraj Khalid is not happy with the pace of the accountability and he has suggested to Leghari to issue new ordinances to ensure corrupt politicians' arrest before the polls. Khalid's wife yesterday told Gulf News that she has suggested to her husband to quit because "people are not happy with the performance of the caretaker government". Sacked prime minister Benazir Bhutto yesterday told her close aides that Leghari had evolved a plan to provide an hung parliament to the nation. "Leghari wants to get himself elected for another term," Benazir told her party leaders adding that she will not spare Leghari. A spokesman of the Pakistan People's Party (PPP) yesterday said that Benazir would contest the elections and during the campaign she would mainly target Leghari to force him quit before the polls. However, sources close to Leghari are of the view that the president will not resign on the demand of Benazir. Meanwhile, Benazir has approached Nawaz Sharif's Pakistan Muslim League (PML-N) to evolve a joint course of action because she is expecting her reinstatement by the Supreme Court. ------------------------------------------------------------------- Nawaz's warning Karachi - Pakistan Muslim League (PML-N) leader Nawaz Sharif, expecting victory at the polls, sounded a note of warning here last night that putting off elections would mean a grim tragedy for the country. He kicked off his election campaign in Sindh, the country's southern province which has been his rival's stronghold for more than two decades. Nawaz avoided being arrogant, but did foresee a fair chance for his PML-N in the elections. In Sindh also, he said, the Pakistan People's Party (PPP) which had been his main challenger, would not be able to muster the same kind of support which it did in previous three elections of 1988, 1990 and 1993. Nawaz addressed a huge rally at the Lyari colony in Karachi from where the PPP had been winning elections in the past. He told the audience that PPP chief Benazir Bhutto and others had done little for the people. They should therefore vote for PML-N. In meetings with newsmen earlier in the day, the PML-N leader expressed ignorance about a proposed council for national security in which the army will have a role. -------------------------------------------------------------------------------- 10 January 1997 Friday 30 Sha'aban 1417 Loans worth Rs9.7bn written off in 11 years LAHORE, Jan 9: Huge bank loans amounting to Rs 9.782 billion were got written-off by as many as 1,418 companies and individuals during an 11-year period between Jan 1, 1986 and Dec. 1, 1996. The list was issued by the election tribunal on Wednesday which was provided by the State Bank of Pakistan for releasing to the press. The loans were obtained by influential people, mostly in the names of their business firms, from 28 national and foreign banks as well as development financial institutions (DFIs). The beneficiaries include political people, industrialists, some retired officers of the three services, retired bureaucrats, some hotel management's, newspaper proprietors, four journalists and a retired Supreme Court judge. The WAPDA, Sindh Road Transport Corporation and governments of the NWFP, Balochistan and Azad Kashmir, the Rice Export Corporation of Pakistan and the Lahore Development Authority also got loans written-off. The Army Welfare Trust and the Bahria Foundation are also among the beneficiaries. The names of these firms and individuals are contained in a voluminous list provided to the Election Tribunal by the State Bank Of Pakistan on Wednesday under a directive. The biggest loan written-off during the period is Rs826.45 million obtained from five banks by Shafaq Lamp Corporation, Karachi. Mr Salim Asghar Ali and Mr Abdus Sami have been shown as directors in the list. Their loans were written-off during a period between December 28, 1995 to November 18, 1996. Prominent political leaders who got their loans written-off include Hakim Ali Zardari and Asif Ali Zardari, Gohar Ayub and his wife, Byram D Avari, the late Sardar Shaukat Hayat, the late Jam Sadiq Ali, the late Sardar Ashiq Mazari, the late Khan Habibullah Khan, the late Noor Hayat Noon, Allama Abbas Haider Abidi, Sardar Khizer Hayat Tiwana, Syed Iftikhar Ali Bokhari, Begum Afifa Mamdot, Nawab Zulfiqar Ali Mamdot and Haji Jam Qasim. Interestingly, Gohar Ayub, who obtained a loan of Rs5.1 million for Rehana Woollen Mills, was written off during the Benazir Bhutto government on August, 8, 1996. The Zardaris obtained a loan of Rs10.07 million which they never paid back. Bankers Mohammad Mansha and Mian Tajammal Husain also got their loans written-off and so is the late Brig Mohammad Aslam Khan, a brother of Air Marshal (retd) Asghar Khan. A former DIG Syed Nawazish Ali and a retired federal secretary T. Z. Farooqi are also among beneficiaries. Mian Aftab Ahmad of Shehryar Textile Mills, Mr Farooq A. Sheikh of the United Export Corporation, the Zuberis of the ASLO industries, Col (retd) Shamas-ul-Haq of the Lahore Mini Bus Service and Justice (retd) Abdul Qadir Sheikh are included in the State Bank list. Prominent companies which got big bank loans written-off include The Hydri Group, Hyesons Sugar Mills, Kohat Textile Mills, Koh-i-Noor Industries, Lakhani Textile Mills, Larkana Woollen Mills, Noon Sugar Mills, Sahiwal Textile Mills, Sargodha Spinning Mills, Sarhad Bricks, Seafood Freezers, Shifa Medicos, United Export Corporation, Valika Woollen Mills, Afsar Textile Mills, Charsada Sugar Mills and the Consolidated Group. GOVERNMENTS: The loans were written-off by five governments during the period, starting with the first Benazir Bhutto government in 1988. The present caretaker government also allowed a loan amounting to Rs730,000 to be written off. It had been obtained from the UBL by a local firm. The first Benazir Government got Rs52.47 written-off and during the second three-year government it allowed 712 compnaies and individuals to get Rs3.438 billion written-off. During the Nawaz Sharif government bank loans amounting to Rs2.674 billion were written-off in 177 cases. The caretaker Mueen Qureshi government allowed 57 companies to get Rs228.7 written-off during its three-month tenure. The caretaker government of Mir Balakh Sher Mazari, which was in power for only one month, got Rs65.231 written-off in 11 cases. BANKS: The Emirates Bank is on top of the list of banks which got a loan of Rs1.515 billion written-off from 102 loanees. The next is the Habib Bank which got written off Rs1.16 billion obtained by 194 people and companies. The UBL permitted 131 cases involving an amount of Rs461 million, the NBP Rs513.6 million in 98 cases, the MCB Rs327.3 million in 92 cases and the ABL Rs321.8 million in 83 cases. The IDBP was made to write-off Rs348 million obtained by 68 industrialists, the ICP Mutual Fund Rs46.7 in 11 cases, the NSDFC Rs391.7 million in 17 cases, Al-Mashreq Bank Rs430.3 million in 33 cases, ANZ Grindlays Bank Rs91.3 million in 10 cases, Pak- Libya Holding Company Rs154.3 million in 16 cases, the Bnnque Indo-Suez Rs55.65 in 10 cases and the Habib Credit and Exchange Rs23.8 million in eight cases. The Pak-Libya Holding Company had got written off Rs154.3 million of the loan obtained by 16, Atlas Investment Rs5.33 million in five cases, Bank of Punjab and Doha Bank Rs6.81 and Rs107 million in seven cases each, Faisal Islamic Bank and Bank of Hong Kong wrote-off Rs45.77 million and Rs28 million in five cases each, Bankers Equity Rs78 million in three cases, PICIC Rs2.43 in two cases, Pak-Kuwait Bank Rs67.51 million and ABN-AMRO Rs13.07 million in six cases each. The Standard and Charterted Bank had written off Rs3.54 million in two cases and Bolan bank and Fidelity Investment Rs 1.11 million and Rs3 million on one case each. ----------------------------------------- Babar says CDNS attempt to pre-empt SC decision KARACHI, Jan 9: The former interior minister and PPP candidate for Karachi's NA-184 constituency, Gen Naseerullah Babar, has said here that the formation of the Council for Defence and National Security (CDNS) is an attempt by the caretaker government to pre-empt the Supreme Court decision on the appeal filed by dismissed Prime Minister Benazir Bhutto. Talking to Dawn, he termed the formation of the CDNS very wrong and "apparently extra-constitutional" and said the caretaker government was supposed to carry out only day to day matters. "If there is any such need, only an elected government can take such a decision", he remarked. He said the decision to create the council had changed the Rules of Business, 1973, and that was not the job of a caretaker government. Mr Babar said the formation of the Council was not within the constitutional framework as it was formed in the circumvention of the Constitution. "Such decisions are normally taken by the chief executive of the country, who is the prime minister", he said. He said the defence committee of the cabinet was there and there was no need to form the CDNS. When asked if the PPP would challenge the formation of the CDNS in the court, Mr Babar said he was not yet aware of the party leadership's decision on the matter. To a question the general said the electioneering was not getting the tempo because the caretaker government was itself creating doubts on the holding of the election. He referred to the caretaker government of Moeen Qureshi and said it had focused its attention to the holding of election right from the first day. As for his candidature for the national assembly seat in Karachi, he said since he played a role in restoring the peace to the city, he was requested by different sections to contest the election from the constituency. Responding to a question, Mr Babar said he would not be afraid for his personal safety at the time of campaigning in Karachi. "It is in God's hands". Mr Babar said his constituency comprised a population of different communities including the Urdu-speaking people. "I am sure the Mohajirs will also vote for me as we rid them of being held hostage at the hands of Altaf Group", he added. Mr Babar said he always distinguished between the Mohajirs and the "Altaf Group" people. "Mohajirs have laid down immense sacrifices for Pakistan and they are patriotic people", he added. Answering a question, he said Imran Khan, chief of the Tehrik-i-Insaaf, who is also contesting from the NA-184, did not pose any challenge to him. "You can't have a person parachuting here and expect to win a seat and become a leader," Mr Babar said. He also came down heavily on the caretaker government for the price-hike and said there was no improvement in the country's economy. ---------------------------------------- 1,900 candidates in Sindh to contest for NA, PA seats KARACHI, Jan 9: Around 1,900 candidates are still in the field for 46 National Assembly seats from Sindh and 109 Sindh Assembly seats for the Feb. 3 general election. A total of 577 candidates have withdrawn their candidatures throughout the province. Initially there were 2,553 candidates u 685 for the 46 National Assembly seats and 1,868 for the 100 Muslim seats in the Sindh Assembly. Of the total 577 candidates who withdrew their candidatures, 168 pulled out of the 46 National Assembly seats in Sindh; 386 dissociated themselves from contesting against the 100 Muslim seats in Sindh Assembly, and the remaining 23 withdrew their candidatures against the nine non-Muslim seats. KARACHI: As far as the city's 13 National Assembly seats and 28 Sindh Assembly seats are concerned, there will be about 500 candidates in the run. Though initially a total of 732 nomination papers were filed from the city (220 for 13 National Assembly seats and 512 for 28 Sindh Assembly seats), 33 nomination papers were rejected during the scrutiny while a total of 193 candidates (63 for the National Assembly and 130 for the Sindh Assembly) withdrew their candidatures till Jan 8, the last date for withdrawing the candidatures. However, the final lists of the contestants will be officially released in a couple of days after the PEC receives Form-V from all returning officers in Sindh. Though under Section 16 of the Representation of the People Act, 1976, which pertains to the withdrawal of candidature, a returning officer on the withdrawal date (which was Jan 8 in connection with Feb. 3 elections) was required to prepare and publish in the prescribed manner a list of contesting candidates which would, if there are more than one contesting candidates, indicate their respective symbols and supply a copy to each of them. In most cases, the ROs neither supplied the final lists of candidates to the contestants nor to the PEC by Jan 9. MINORITY SEATS: From 134 candidates who had filed nomination papers against the nine minority seats reserved for non-Muslim in Sindh Assembly, 23 have withdrawn their candidatures. Sixteen candidates withdrew their candidatures from the seats reserved against Hindus and scheduled castes; three withdrew from the Christians' seats; two withdrew from the Qadianis' seats and two from the Parsi, Sikh and Buddhist communities seats. Of the total nine seats reserved for non-Muslims in the Sindh Assembly, five seats are reserved for the Hindus and scheduled castes; two seats for the Christians; one seat for the Sikh, Buddhist, Parsi communities and other non-Muslims while one seat for the Quadiani or Lahori group (who call themselves Ahmadis). -------------------------------------- Phone exchange makers hit hard by smuggling KARACHI, Jan 9: Local manufacturers of EPABXs commonly known as internal telephone exchanges are in a fix over the growing smuggling of different systems of these exchanges. Dawn inquiries reveal that local companies engaged in EPABX manufacturing that kept thriving during 1985-1995 now find it difficult to continue their business. "Many of us may close down their business because smuggling of EPABXs are on the rise and that too under the guise of official manufacturing licences," said a Karachi-based EPABX maker. He said some foreign companies having such are not at all manufacturing telecommunication devices and are simply engaged in selling these products. The No Objection Certificates issued by the PTA (formerly PTC) requires the companies seeking NOCs to manufacture Telecom devices in Pakistan and not just import them and sell them in the local market. More than two dozen companies including multinationals have the NOCs for EPABX manufacturing but hardly half of them fulfil this requirement. "The rest of them only sell the finished products whether the same are smuggled or imported." Telecom industry sources said about a dozen genuine makers of EPABX produce around 3000 sets of telephone exchanges worth at least Rs 100 million every year. They say the industry employs about 3000 Telecom engineers and technicians. But the plight of the industry is that the smuggling of EPABX has grown to alarming proportions forcing the local manufacturers out of the market. Some foreign companies that are only represented by their Pakistani agents and do not have any production facility in Pakistan are openly selling their finished products. "This is a clear violation of the NOCs issued to them but who cares?" complained the chief executive of a local company. A casual scanning of the list of the foreign companies that have NOCs for manufacturing Telecom products shows that at least one of them has no production facility at all. But it manages to sell its products through its sales offices in Pakistan. Two other foreign companies that have their production base in the country quite often assemble their products here and do not manufacture. "This is equally true in case of some local companies whose job is to smuggle finished products and sell them," said the representative of a foreign company having a licence for APABX making. "This is the job of the Authority that issues the licences to see whether the conditions they contain are met," he added. A PTA official who declined to be quoted said: "We issue the NOCs after a complete investigation and physical demonstration of the proposed products at Central Telecommunication Research Laboratory." "Besides we also keep a vigil on the activities of the companies having these licences and occasionally take actions against them." Apart from smuggling and misuse of the NOCs issued for manufacturing Telecom devices the rising cost of production of EPABXs is also hurting the industry. The makers of telephone exchanges and telephone sets have to pay 5% of the total cost of production of their products as royalty to the PTA. Besides, they have to pay 18 % sales tax and 2.5 % turn-over tax plus 3.5% advance income tax on the supplies of their products. "These taxes coupled with the ever-increasing utility charges and haulage keep increasing our cost of production," said the chief executive of a EPABX making company. "But we cannot pass it on to the consumers because that can knock us out of the market." The manufacturing of EPBAXs and telephone sets started in mid 80s in Pakistan and since then the industry continued growing until 1995. The extent of the growth could be gauged from the fact that the number of companies rose from one to more than two dozen during this while. According to rough estimates, the private sector has so far installed at least 40,000 EPBAXs of varying capacity across the country. ----------------------------------------- ABAD's plea to review irregular cases KARACHI, Jan 9: The Association of Builders and Developers (ABAD) has appealed the caretaker government to review the cases of 270 irregular buildings, presently lying sealed. In a memorandum to minister for housing and town planning Maqbool Rahimtoola, the ABAD chairman, Abdul Karim Tai, however, made it clear that the association did not support illegal construction of buildings or upheld any act of violation by ABAD members or non-members, and added that it was pleading their case purely on humanitarian grounds. According to an assessment of ABAD, the impact of the sealing of 270 buildings has affected 35,000 allottees and rendered at least 100,000 people jobless mainly those who were attached to industries like cement, steel, aluminium, paints, timber, electrical conduiting and wiring, sand and crush, marble, sanitary wares, tiling etc. Present situation indicates that an investment in the housing projects, amounting to about Rs 14 billion, invested by the builders and the allottees alike, was at stake i.e. the allottees investment was on the high side, indicating an average investment of Rs 13 billion of the allottees mainly from lower and lower middle class and of over Rs one billion by the builders. With the passage of time, it was argued that the inflation in the cost of building materials and labour force, was also adding to the cost of construction unless some concrete steps are taken immediately in the larger interest of thousands of allottees and also to save the construction industry from a collapse which provided employment to thousand of families directly or indirectly. Mr Tai pointed out that as a fate accompli the irregular buildings had been constructed in violation of the approved building plans, including some exceeding the constructed area; yet, it is difficult to pinpoint the causes of these violations, he added. The chairman ABAD maintained that the present situation did not crop up overnight but was decade-old. Hence, a long-term policy is required to find a solution otherwise the same situation will continue to persist unabated. He cited some causes which led to such a situation: Obsolete and outdated building bylaws; abrupt changes in government policy; arbitrary cancellation of NOCs; freezing of plots; use of discretionary powers; fragmentation of KBCA; banning of regularisation discreetly (no wide publicity was given) when the Ordinance was amended in Nov 1994. Besides, ABAD chairman requested the caretaker minister Maqbool Rahimtoola to consider sympathetically the cases of all the sealed buildings after categorising the nature of violations. He suggested five categories to sort out the problem: Category-A: buildings with minor violations such as change of column position, insertion or extension of balconies and projects sealed due to freeze on plots with no violations; category-B: violations of compulsory open space; category-C: additional floors over and above approved plan; category-D: buildings constructed without approved plan etc; category-E: buildings constructed without any plan in contravention of building bylaws. Mr Tai suggested that categories A to C may be examined on the basis of prevailing conditions locality wise and on basis of precedence whereas category D and E should be examined on case to case basis. Summing up, Mr Tai urged government to issue special orders, extending cut-off date for the implementation of the amended Sindh Building Control Ordinance which debars regularisation i.e. the cut-off date may be some where from October to December 1996 for regularisation of violations as per laid down procedure to be followed with composition fee structure as practised by the KBCA and in the meantime, the existing outdated building bylaws may be updated and upgraded to check such violations in the future. --------------------------------------------------------------------------------