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NEWS HEADLINES

1- THE PRIME MINISTER MR.MOHAMMAD NAWAZ SHARIF HAS SAID THE PAKISTANI NATION IS FULLY CAPABLE OF COMING OUT OF THE CURRENT ECONOMIC CRISIS AS IT HAS THE POTENTIAL TO FACE THE CHALLENGES AND WITHSTAND TRIALS AND TRIBULATIONS.

2- THE PRESIDENT MR.MOHAMMAD RAFIQ TARAR HAS SAID THE PREVALENT NATIONAL SPIRIT WILL HELP OVERCOME THE ECONOMIC HURDLES WHICH ARE TEMPORARY.

3- IN WASHINGTON THE IMF BOARD OF DIRECTORS HAS INFORMALLY DISCUSSED THE 226 MILLION DOLLARS ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRANCHE TO PAKISTAN.

NEWS IN DETAIL

THE PAKISTANI NATION IS FULLY CAPABLE OF COMING OUT OF THE CURRENT ECONOMIC CRISIS AS IT HAS THE INHERENT POTENTIAL TO FACE CHALLENGES AND WITHSTAND TRAILS AND TIBULATIONS. THE OBSERVATION WAS MADE BY PRIME MINISTER MR. MOHAMMAD NAWAZ SHARIF WHILE PRESIDING OVER A HIGH LEVEL MEETING WITH LENDING ECONOMIC EXPERTS, BUSINESSMEN AND BANKERS IN ISLAMABAD TODAY. HE SAID THAT ALL ATTEMPTS TO EXPLOIT POST MAY 28 DEVELOPMENTS BY THE VESTED INTEREST WOULD FAIL AND THE NATION WOULD SOON TIDE OVER ITS DIFFICULTIES. THE PRESENT PHASE IS A TEMPORARY ONE AND SOON BE OVER. 'NOTHING IS MORE PRECIOUS THAN PRESERVATION OF OUR POLITICAL INDEPENDENCE AND TERRITORIAL INTEGRITY', HE ADDED. THE PRIME MINISTER SAID IF ANY ARM-TWISTING TACTIC IS APPLIED TO PAKISTAN, THE COUNTRY WOULD RESIST IT WITH FULL FORCE AND MIGHT. 'WE WILL NEVER SUBMIT TO COERCION OR PRESSURE WHATEVER ITS FORMS OR WHEREVER IT OCCURS', HE SAID. HE EXPRESSED THE OPINION THAT IN THE HISTORY OF NATIONS, PROBLEMS LIKE SANCTIONS SOMETIME PROVE TO BE A BLESSING IN DISGUISE. HE SAID WHAT WE HAD DONE ON MAY 28 WAS NECESSARY TO ENSURE OUR CONTINUED EXISTENCE AS AN INDEPENDENT AND SOVEREIGN NATION. THE PRIME MINISTER MADE IT CLEAR THAT PAKISTAN IS A PEACE LOVING COUNTRY AND IT HAS NO AGGRESSIVE DESIGNS AGAINST ANY COUNTRY. THE ECONOMIC SITUATION WAS REVIEWED DURING THE MEETING IN THE LIGHT OF POST MAY 28 SCENARIO AND A NUMBER OF SUGGESTIONS WERE CONSIDERED TO IMPROVE THE SAME. THE PRIME MINISTER ASKED THE PARTICIPANTS TO MAKE SPECIFIC RECOMMENDATIONS FOR THE UPLIFT OF ECONOMY AND ENHANCING COUNTRY'S FOREIGN EXCHANGE RESERVES. THE PRIME MINISTER URGED THEM TO SUGGEST WAYS AND MEANS FOR PROTECTING THE POOR AND NEEDY FROM THE NEGATIVE FALLOUT OF CONTEMPORARY PRICE HIKE AND INFLATION AND PROVIDE THEM SPECIAL SAFETY NETS. HE SAID THAT LOANS WOULD ALSO BE GIVEN TO AGRICULTURISTS TO DEVELOP AGRICULTURE AND BOOST AGRICULTURAL PRODUCTION. THE COUNTRY IS ALREADY SELF-SUFFICIENT IN ITS FOOD REQUIREMENTS, HE SAID. 'THE PEOPLE OF PAKISTAN ARE BRAVE AND HARD WORKING AND THEY WILL INSHALLAH COME OUT OF THE CRISIS VERY WELL AND THERE IS ABSOLUTELY NOTHING TO WORRY, THE PRIME MINISTER MAINTAINED.

THE PRESIDENT MR.MOHAMMAD RAFIQ TARAR HAS SAID THE PRESENT ECONOMIC DIFFICULTIES ARE TEMPORARY AND THE PREVALENT NATIONAL SPIRIT WILL HELP OVERCOME THESE HURDLES. THE PRESIDENT WAS ADDRESSING A DELEGATION OF SILK-RIYON MILLS ASSOCIATION WHO CALLED ON HIM IN ISLAMABAD TODAY. THE DELEGATION WAS LED BY ITS CHAIRMAN MR. KHALID AMIN. THE PRESIDENT SAID WE WERE FULLY COGNISANT OF THE FACT THAT SANCTIONS WOULD BE IMPOSED ON US AND WE WOULD CONFRONT ECONOMIC DIFFICULTIES. BUT THE PRESENT SITUATION COULD NOT DAMPEN THE NATIONAL SPIRIT HE ADDED. REFERRING TO INDIA'S NUCLEAR TESTS AND ITS AGGRESSIVE DESIGNS THE PRESIDENT REMARKED PAKISTAN HAD TWO OPTIONS - IT HAD EITHER TO ACCEPT BILLIONS OF DOLLARS IN FOREIGN AID AND LEAD AN IGNOMINIOUS WAY OF LIFE OR TO REPRESENT THE NATIONAL ASPIRATIONS BY GOING FOR AN HONOURABLE WAY OF LIFE. HE LAUDED PATRIOTISM OF BUSINESSMEN AND INDUSTRIALISTS AND URGED THEM NOT ONLY TO PAY THEIR TAXES IN THIS HOUR OF TRIAL BUT ALSO CONTRIBUTE TO THE PRIME MINISTER'S SELF RELIANCE FUND IN A BIG WAY.

THE BOARD OF DIRECTORS OF THE INTERNATIONAL MONETARY FUND WHICH IS TO RELEASE THE 226 MILLION DOLLARS ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRANCHE TO PAKISTAN HAS INFORMALLY DISCUSSED THE ISSUE IN WASHINGTON. THE BOARD OF DIRECTORS TOOK STOCK OF THE REPORT SUBMITTED BY MR. PAUL CHABRIER, DIRECTOR FOR MIDDLE EAST REGION WHO RECENTLY VISITED PAKISTAN. PTV CORRESPONDENT QUOTING A SOURCE IN WASHINGTON SAYS THAT CHABRIER REPORT FAVOURS PAKISTAN AND RECOMMENDED RELEASE OF THE TRANCHE IN ESAF ARRANGEMENT AMOUNTING TO 1.6 BILLION DOLLARS. THE IMF BOARD IS MEETING AGAIN TOMORROW TO DISCUSS THE RELEASE OF THE ESAF LOAN THAT IS INTEREST FREE FOR TEN YEARS. AN APP REPORT SAYS THAT THE INDICATION TILL NOW SUGGEST THAT PERHAPS THE ASSISTANCE TO PAKISTAN BE APPROVED BECAUSE IMF DIRECTOR HAD HIMSELF GIVEN POSITIVE INDICATION AT A PRESS CONFERENCE IN PAKISTAN. AND U.S. SECRETARY OF STATE MADELEINE ALBRIGHT HAD GIVEN GOODWILL GESTURE ABOUT PAKISTAN IN THE AMERICAN SENATE AND STATED THAT THE RESPONSIBILITY OF THE ENTIRE NUCLEAR ISSUE LIES ON INDIA AND NOT PAKISTAN, BBC REPORTED TODAY.

IN LAHORE, FOREIGN MINISTER MR. GOHAR AYUB KHAN HAS EXPRESSED THE HOPE OF THE OUTCOME OF THE IMF BOARD OF DIRECTORS DELIBERATIONS IN WASHINGTON WILL BE POSITIVE. HE WAS OPTIMISM ABOUT THE ECONOMIC SITUATION OF THE COUNTRY. HE SAID THE PRIME MINISTER HAS SENT DIFFERENT MISSIONS TO DIFFERENT FRIENDLY COUNTRIES TO SEEK THEIR HELP AT A SUCH CRUCIAL JUNCTURE AND HOPE DEEP EFFORTS WOULD BEAR THROUGH. TO A QUESTION ON THE SIGNING OF THE COMPREHENSIVE TEST BAN TREATY, MR. GOHAR AYUB KHAN SAID PAKISTAN HAS CHANGED ITS CONDITIONS. NOW IF INDIA SIGN CTBT IT WAS NOT NECESSARY THAT PAKISTAN WILL FOLLOW THE SUIT. WE HAVE OUR OWN CONCERNS AS WE HAVE TO BE VERY CAREFUL IN MAKING ANY SUCH MOVE, THE FOREIGN MINISTER ADDED.

THE IRANIAN PRESIDENT, SYED MOHAMMAD KHATAMI HAS UNDERSCORED THE MANY LINKAGES THAT EXISTED BETWEEN PAKISTAN AND IRAN AND STRESSED THE NEED FOR FURTHER CONSOLIDATION OF THE BILATERAL RELATIONSHIP. THE IRANIAN PRESIDENT WAS TALKING TO THE FEDERAL MINISTER FOR RELIGIOUS AFFAIRS RAJA MOHAMMAD ZAFARUL HAQ WHO CALLED ON THE IRANIAN PRESIDENT IN TEHRAN THIS MORNING. THE FEDERAL MINISTER DELIVERED TO THE IRANIAN PRESIDENT A LETTER FROM THE PRIME MINISTER MR. MOHAMMAD NAWAZ SHARIF. HE ALSO CONVEYED TO HIM THE GREETINGS AND BEST WISHES OF THE PRESIDENT AND THE PRIME MINISTER.RAJA MOHAMMAD ZAFARUL HAQ ALSO RECALLED INVITATION THAT HAD BEEN EXTENDED TO THE IRANIAN PRESIDENT BY THE PRIME MINISTER TO VISIT PAKISTAN AND SAID THAT THE GOVERNMENT AND PEOPLE OF PAKISTAN WERE EAGERLY LOOKING FORWARD TO AN EARLY VISIT BY THE IRANIAN PRESIDENT. RAJA MOHAMMAD ZAFARUL HAQ ALSO BRIEFED PRESIDENT SYED MOHAMMAD KHATAMI ON THE LATEST DEVELOPMENT IN THE REGION.

IN OCCUPIED KASHMIR AS MANY AS EIGHT INDIAN SOLDIERS HAVE BEEN KILLED IN MUJAHIDEEN-TROOPS CLASHES IN BANIHAAL AND BANDIPURA AREAS. THE TROOPS TORTURED A YOUNG MAN TO DEATH IN QAZIGUND. A NUMBER OF YOUTH AND WOMEN HARASSED DURING CRACKDOWN IN ANANTNAG-ISLAMABAD. A MILITARY OFFICER WARNED THE PEOPLE DURING CRACKDOWN THAT THEY WOULD NOT BE ALLOWED TO PERFORM PRAYERS IN MOSQUES UNLESS THEY COOPERAGE WITH THE ARMED FORCES. MORE THAN THIRTY EIGHT INNOCENT YOUTH WERE REPORTED ARRESTED IN GANDERBAL, SOPORE AND ISLAMABAD AREAS. ARRESTS WERE ALSO CARRIED OUT IN PATTAN, IN BARAMULA AREA. LARGE SCALE SIEGE AND SEARCH OPERATION IS UNDERWAY IN SURANKOT AREA WHERE A NUMBER OF INDIAN TROOPS WERE KILLED BY THE MUJAHIDEEN. REPORTS SAID ALTHOUGH FRESH REINFORCEMENT HAS BEEN DESPATCHED TO THE AREA YET THE TROOPS HAVE FAILED TO CONTROL THE SITUATION.

WEATHER

MORE RAIN WITH THUNDERSTORM IS EXPECTED AT SCATTERED PLACES OF PUNJAB AND KASHMIR.