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Associated Press of Pakistan
News Summary
08- 06-2002

Pakistan has no aggressive designs but to defend its borders with  all resources: Musharraf

ISLAMABAD, Jun 8 (APP): President, General Pervez Musharraf said Friday Pakistan did not have any aggressive designs but would defend its borders with all its resources and people's power. He said this while talking to members of the Economic Advisory Board (EAB) in a meeting here in which the economic matters in the context of overall situation of the country were discussed. EAB comprises business leaders, leading professionals, social workers, economists and agriculturists. President Musharraf said Pakistan wanted dialogue with India on all issues including Kashmir. The President briefed the meeting of his recent contacts with the international leaders both at home and abroad on the on-going border situation with India. He also informed the meeting that during his visits to China and Japan he found enormous interest in Pakistan in the context of rehabilitation of Afghanistan and the opening up of Central Asia. President Musharraf said there was a need for business community to get prepared for seizing these new business opportunities as soon as the situation in Afghanistan stabilized. He urged the business community to fulfill their obligations both toward paying taxes as well as undertaking investments. The President said it was the policy of the government to provide maximum freedom of investment to the private sector and limit the role of the government in commercial enterprises. This was the main reason behind the privatization efforts where the major public sector assets were sold to the private sector so that these could be better managed, he added. The President said, there must not be situation where government vacates the space that did not get occupied by the private sector. In this regard the President underlined the constitution of the Inter-Ministerial Committee on Deregulation that is charged with the mandate to identity and remove a host of irritants that increased the cost of doing business in Pakistan. President Musharraf also assured the members that appropriate measures are being contemplated to ensure continuity of policies after the general elections. He said the policies adopted by his government were not partisan but based on national consensus and on that very account these were likely to remain in place after the new government assumed office after general elections. The EAB members on the occasion appreciated the policies of the government and assured their full support in realizing the desired outcomes.

They, however, underlined that despite a major improvement at the senior level, implementation of policies remained slow at the lower level. It was emphasized that archaic laws remained on the statute books that enabled junior level officials to harass businesses and create problems for their working. It was also pointed out that access to some of the utilities, such as electricity, still posed numerous problems. Some members were of the view that even when Pakistani products were superior they were discriminated against on account of poor perceptions and as such there was much more that was required to be done on further improving the image of the country than was done at present. The President took note of the suggestions made on the occasion and directed the concerned officials to take remedial measures. Ministers for Finance, Commerce, Communications, Science and Technology, Agriculture, Labour, Privatization and Provincial Finance Ministers of Sindh and Balochistan and other senior officials were also present on the occasion. Earlier, Finance Minister, Shaukat Aziz presided over the 10th meeting of the Economic Advisory Board. In his opening remarks the Finance Minister noted that the year 2001-02 was most challenging from the outset. The global showdown due to oil price shock and bursting of dot-com bubble and persistent drought were posing major problems for economic growth. However, things became more challenging in the aftermath of September 11 incident and the massing of troops on our Eastern border, he added. Yet despite all these challenges and thanks largely to the relentless pursuit of reforms programme, the economy of Pakistan withstood all these shocks and performed satisfactorily, the Finance Minister remarked. He said all major indicators of economic performance, namely growth, inflation, balance of payments, credit to private sector and fiscal deficit were either on target or remained around them. Growth was likely to be 3.5% that compared very favourably with in the region. Inflation at less than 4% was again one of the lowest indicating continued price stability in the country. A detailed presentation was given to the Board on the major trends in the economic variables during the year. This was followed by briefings by Chairman CBR on the reforms of tax administration and heads of the three sub-groups of the Inter-Ministerial Committee on Deregulation on the subjects of labour levies, tax procedures and corporate laws. Chairman CBR informed the Board that tax administration reforms were focused on the autonomy of CBR in setting its human development, budgetary and administrative policies, simplification of tax processes, increased use of technology in assessment, audit and collection and de-lairing of CBR operation. He further said that CBR will introduce the concept of exclusive handling of large taxpayers under one roof through the establishment of Large Taxpayer Unit and a similar pilot for small and medium scale taxpayers. Main features of new Income Tax Ordinance to be effective from July 1, 2002, especially the self assessment scheme, were also highlighted. The Labour Minister briefed the meeting on the entire range of labour issues that are being currently discussed and remedial measures adopted by the Ministry of Law in consultation with provincial labour departments. He said besides consolidation of laws in the form of a new Industrial Relations Ordinance - aimed at improving the overall state of industrial relations in the country - the department had devoted considerable efforts in simplifying the procedures for EOBI assessment and collection. These simplified methods will result in a new self- assessment scheme that will be effective from July 1, 2002, he added. Secretary General Finance informed the Board on the broad outlines of proposals, the sub-group on removing irritants from tax procedures was recommending. In the area of refunds use of internet was being recommended. More branches of NBP were necessary to enable better compliance from the taxpayers. The need for simplification and predictability of audit procedures was also recommended. Minister for Privatization briefed the meeting on his sub- group's recommendations in the area of corporate laws. He pointed out that litigation was a very costly affair and small dispute courts were essential for this purpose. He said many of the government agencies such as boiler inspection, weights and measures, could easily be outsourced that would save a great deal of energies from both the government and the business. The preferential access in insurance business needed reform.  There was also a need to match the benefit employers were contributing for employees with that they were actually receiving from the institutions who were receiving that contribution from businesses. These briefings were followed by an extensive debate in the Board. Members were of the view that reforms agenda was undoubtedly sound but the pace of implementation needed acceleration. They stated that cost of doing business was high and as such the work of the deregulation committee should be expedited and its recommendations be adopted quickly.

President to leave for UAE, Saudi Arabia on June 10

ISLAMABAD, Jun 8 (APP): President General Pervez Musharraf will visit United Arab Emirates and Saudi Arabia from June 10 to 12, it was officially announced here Friday. The government and the people of Pakistan attach the highest importance to their close and fraternal ties with Saudi Arabia and the UAE. The relations with UAE and Saudi Arabia are time- tested and demonstrate their abiding interest in each other's security, stability and prosperity. This visit will serve to further strengthen Pakistan's relations with these brotherly countries.

APHC representatives call on President

ISLAMABAD, Jun 8 (APP): President General Pervez Musharraf Friday assured the representatives of All Parties Hurriyat Conference (APHC) of the AJK Chapter, of Pakistan's commitment to a just and negotiated settlement of Kashmir dispute in accordance with UN resolutions and wishes of the Kashmir people. He was talking to the representatives of APHC of the Azad Jammu and Kashmir Chapter who called on him here . The delegation included Muhammad Sadiq Ganani (People' League- Convenor), Altaf Hussain Qadri (Jammu Kashmir Liberation Front- General Secretary), Professor Muhammad Ashraf Saraf (Muslim Conference), Syed Muhammad Yousaf Naseem (Peoples Conference), Ghulam Muhammad Safi (Jammat-e-Islami), Mir Tahir Masood (Ittehad Ul Muslimeen) and Syed Faiz Ahmed Naqshbandi (Awami Action Committee) The President assured them of Pakistan's commitment to the just and negotiated settlement of the Kashmir dispute, which was the core issue and root cause of tension in South Asia. The President reiterated the government's moral, diplomatic and political support to the indigenous struggle of self- determination of the Kashmiri people from Indian occupation forces. The APHC representatives appreciated the steps that had been taken by the President and the Government of Pakistan for drawing world attention to the Kashmir dispute. They welcomed the policy of restraint, which Pakistan had been showing in the face of Indian troops mobilization. They said that the people of Kashmir stood shoulder to shoulder with Pakistan in the advent of any attempt at misadventure by Indian. The representatives of the APHC AJK Chapter called upon the Indian Government not to push South Asia towards destruction by resorting to a senseless confrontation, which was not in the interest to both the people. The APHC leaders expressed their total support to Pakistan's call for a dialogue and the settlement of all outstanding disputes through meaningful negotiations. Fateha was offered for the departed soul of prominent Kashmir leader Abdul Ghani Lone who was assassinated in Indian Held Kashmir recently and whose murderers are still at large.

5 killed, 15 injured in Indian fining across LoC

ISLAMABAD, June 8 (APP): At least five innocent civilians were martyred and fifteen others including three children received injuries due to indiscriminate and unprovoked firing and shelling by Indian troops from across the Line of Control during the last 12 hours. Indian Army targeted civilian population with mortars, medium and field artillery and other automatic weapons. Three civilians embraced shahadat and seven others were injured in Tattapani area. One person was martyred in Nakial sub sector and five others were wounded. Another person embraced shahadat while three others sustained injuries in village Mandol in Hajira sub sector. Meanwhile, Indian Army also targeted civilian population on the outskirts of Kotli - the district headquarters located 15 kilometers inside form the Line of Control. The injured were immediately shifted to the nearby hospitals for medical treatment. Civilian property was also damaged due to intense Indian shelling and firing. Pakistan Army swiftly retaliated and targeted enemy's military installations. According to confirmed reports eighteen Indian soldiers were killed and wounded while six enemy bunkers were damaged. The enemy guns were silenced due to the effective retaliatory action by Pakistan Army.

Unmanned Indian aerial vehicle shot down inside Pak territory: ISPR

ISLAMABAD, June 8 (APP)- An unmanned Indian aerial vehicle was shot down by PAF fighter aircraft near village Raja Jang at 2300 hours on Friday, says an ISPR press release. It said: "The Indian aerial vehicle was on reconnaissance and spying mission when it violated the Pakistan air space close to Lahore." The violation was monitored and the fighter aircraft of the PAF were immediately scrambled. The PAF fighter jets intercepted the unmanned aircraft inside Pakistan's territory and shot it down. The wreckage of the Indian aircraft fell close to town Raja Jang, District Kasur.

India continues ceasefire violations across LoC & WB, causing civilian casualties: General Rashid

ISLAMABAD, June 8 (APP- The Director General ISPR, Major General Rashid Qureshi late Friday evening said that "despite Pakistan's best efforts to de-escalate, India in complete disregard to international norms, continues ceasefire violations by firing across the Line of Control and the Working Boundary, causing civilian casualties." Talking to APP, Gen. Qureshi said: "India has also violated Pakistani airspace, the proof of which has been the intrusion into Pakistani airspace by an Indian unmanned spy plane." Pakistan, he said has repeatedly conveyed to India that it does not want tensions to increase, "but if Indian aggression is launched, Pakistan will defend itself." "Pakistan's determination to defend every inch of its land and airspace has been proved by downing of India's spy plane," the DG-ISPR stated. Gen. Rashid Qureshi asserted that "Pakistan reiterates that it will not tolerate any aggression." "We hope that India learns a lesson and stops violation of Pakistan's land and airspace," he said, adding: "Humiliation that India must have suffered in losing its aircraft should convey to the Indian leadership that Pakistani Armed Forces have the capability of countering any sort of aggression that India may launch," the DG-ISPR added.

Nisar-Press
Pak success at Almaty 'freezes' border situation: Nisar

LAHORE, Jun 8 (APP): Federal Minister for Information and Media Development Nisar A Memon said on Friday that the diplomatic success achieved by Pakistan at the regional summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) has led to the 'freezing' in deterioration of situation along the Indo-Pakistan border. Speaking to the reporters on his arrival from Karachi this afternoon, the Minister said the success at Almaty has enhanced the stature of Pakistan and the world opinion now realise that the war hysteria has been created by India. "Although the situation is changing fast but it is moving in favour of Pakistan," he said. He said the President's visit to Tajikistan and Kazakhstan has also boosted the bilateral relations between the two countries. Alongwith these countries, China has also 'reaffirmed and reconfirmed' its cordial and friendly relations with Pakistan, he added. The Minister said President Musharraf presented the Pakistan case in a eloquent and forthright manner at the CICA and this was appreciated by the participating leaders. He said Pakistan had sent abroad special envoys to apprise the world community about the situation that has developed due to amassing of the Indian troops on the Pakistan borders and the country's stance in this regard. Nisar Memon urged the national media to play its due role in highlighting Pakistan's diplomatic success at Almaty. The Minister dismissed as "totally wrong" speculations that President Musharraf may meet former Prime ministers Benazir Bhutto and Nawaz Sharif during his June 8-9, visits to Saudi Arabia and the United Arab Emirates. "That is totally wrong - no meetings have been planned with Benazir Bhutto or Nawaz Sharif and neither has there been any direct or indirect contact with any of them," he told the newsmen. During the visits, Nisar said, the President will hold meetings with leaders of Saudi Arabia and Abu Dhabi on bilateral issues and brief them about the current situation vis a vis Indian escalation. Regarding invitation sent to the leaders of All Parties Conference (APC) and Alliance for the Restoration of Democracy (ARD),he said the Government was waiting for their reply to attend consultative meetings with President. He expressed his surprise over the posture of Muttahida Majlis-i-Amal (MMA) which while accepting the invitation has said it would decide on meeting the President once the dates are fixed. The Minister described the stance as 'quite strange' and said if the Majlis has agreed to meet the President then such a condition must not be put up. Responding to a question regarding proposed Defamation Law,he said the stories appearing in the press had been quoted out of the context as the law has yet to be processed. The Minister said the Government would consult CPNE,APNS and PFUJ before finalising the law.

Pakistan enjoying edge over India on diplomatic front: Memon

LAHORE, June 8 (APP): Federal Information Minister Nisar A. Memon Friday said that the Pakistan has now edge over India on diplomatic front. "Now the world powers were asking India to get engaged into dialogue with Pakistan to resolve all the disputes including the one on Kashmir", he said while addressing 44th Nigar Awards at Alhamra here this evening. Federal Culture and Youth Affairs Minister, S.K. Tressler was present on the occasion. He said that Pakistan was in safe hands and added that the government was committed to defend each and every inch of motherland in case of any misadventurism from India. Memon assured that war, if imposed by the enemy, would be fought over the land across the border, not in Pakistan or Azad Kashmir. He said it was the complete preparedness of Pakistani nation and army which had forced India not to indulge in any sort of misadventure. "It (India) could have indulged in any mischievous activity, had there been no preparedness on Pakistani side", he said. Memon said, Pakistan, despite being a smaller country, had enough muscle to protect itself vis-a-vis any threat from enemy. He urged people not to get tense as Pakistan was enjoying a better position on diplomatic front vis-a-vis India. "The situation has changed significantly. Indian Prime Minister, Atal Behari Vajpayee who had been reluctant to talk to Pakistan on any issue, was now ready to have joint patrolling with Pakistan on the Line of Control", he said. He urged the artists to produce only good quality programmes so Pakistanis did not look towards any foreign channel for entertainment. "We have banned the channels beaming anti-Pakistan propaganda", he said. Later, the Minister gave away awards to the artists on their best performance.

Atta appointed as Chairperson of HEC in addition to existing portfolio

ISLAMABAD, Jun 8 (APP): The government has appointed Dr. Atta-ur-Rahman in addition to his existing portfolio as the Chairperson of the Higher Education Commission (HEC) with immediate effect. He will enjoy the status of a Federal Minister in his capacity as the Chairperson of the Higher Education Commission, said a notification issued here Friday.

Sattar requests for being relieved of his responsibilities on health grounds: Official announcement

ISLAMABAD, Jun 8 (APP)- Official sources Friday confirmed that Foreign Affairs Minister Abdul Sattar has requested the President to relieve him of his responsibilities in the Cabinet on health grounds. Abdul Sattar underwent a major nasal surgery last month which was both long and complicated. "The request is under consideration of the President, who has asked Mr.Abdul Sattar to continue to handle his responsibilities as the Minister for Foreign Affairs until a decision is taken," the official press release added.

Withdrawal of Indian troops from forward position must for real de-escalation: Spokesman

ISLAMABAD, June 8 (APP): Observing slight reduction in Indo-Pak tension, Foreign Office Spokesman, Aziz Ahmed Khan Thursday said real de-escalation will take place only when Indian forces are withdrawn from forward positions. "It appears that there is a very slight reduction in tension but the real de-escalation and reduction in tension will take place only when the Indian forces deployed on forward positions in an offensive posture are withdrawn from the borders", the Spokesman told BBC Television. He said, before that it is very difficult to say that how durable and how long this de-escalation would be. "We are gratified that the international community is paying attention and they are trying to defuse the situation and reduce tension", he said. He said Pakistan has throughout been calling for reduction in tension and for dialogue to settle all outstanding issues with India. On Indian proposal of joint border patrolling, the Spokesman reiterated his stance that in the given conditions, this proposal will not work. Besides, he said the proposal has not properly been sent by the other side rather it is based on media statements. He said if there is a proposal, it should be made formally through the diplomatic channels. The proposals need to be discussed across the table, he said adding "we may have counter proposals, we may have some questions about proposal. All these need to be discussed and answered." He said Pakistan has given assurance that no cross border activity is taking place. If India does not take these words then there should be neutral observers under the UN supervision to monitor the situation on ground. "This is the only way out to put the international monitors to decides who is telling the truth", the Spokesman said. The proposal, he said is not a new thing, rather such proposals have also been in the past and at that time also they were not found workable. Asked will the resignation of Foreign Minister Abdul Sattar affect Pakistan's foreign policy he said, government makes the foreign policy and its is an institutional arrangement. "First of all I don't know exactly when this change will take place. But if at all, I think we will carry on our position regarding reduction of tension, our policy of negotiation and talks and peaceful settlement of dispute. We will continue with that."

International Community must play active role to resolve Kashmir issue: Sultan

ISLAMABAD, Jun 8 (APP): Opposition leader in Azad Kashmir Barrister Sultan Mahmood Chaudhry Friday urged the international community to play effective role in the present tense situation in Kashmir without further delay before it will become more volatile. Addressing a press conference here today, he said, situation on Line of Control (LoC) is very dangerous and volatile and it is becoming more precarious due to concentration of Indian forces at the LoC. Barrister Sultan Mahmood who is also leader of Pakistan Peoples Party, AJK and former Prime Minister of Kashmir said, Indian forces continued shelling and firing across the LoC and it has become their routine. He said, the shelling of Indian forces, damaged Kotli village which is only 25 Km from the LoC which means that the firing has reached near the borders in Kashmir. Barrister Sultan said if the international community did not pay attention in the present tense situation in the Kashmir, the situation could become out of control and war between Indian and Pakistan will be imminent. He said so far 70,000 Kashmiris have laid their lives in the recent indigenous freedom movement which started in 1989 in response to Indian atrocities and belligerence in the region. Replying to a question, he said, 150 Kashmiris lost their lives due to Indian firing and uncalled for shelling while more than 500 injured in last one month only. He said gang rape, torture of men, children and women and violation of human rights in the occupied Kashmir have become a routine matter for the 700,000 Indian forces present in the area. Barrister Sultan Mahmood said, 700,000 Indian forces in occupied Kashmir is the largest concentration for forces in any occupied area in the world. He called upon the international community to put more pressure on India to implement on the resolutions of Security Council on Kashmir to ensure right of self- determination to the kashmiri as demanded by the people of Kashmir. Sultan Mahmood said, people under the occupation of Indian forces, have full right to defence themselves and resist to these inhuman acts. Explaining the background of the current resistance movement in Kashmir, he said, it was started in 1989 after the Indian aggression in the region as it was very peaceful movement till that day. He said it was only due to subjugation of the people of Kashmir by the Indian forces. The Kashmiri leader said it is very encouraging sign that international community has started given some attention to Kashmir issue and it has become focus of international concern. Referring to the tension on the borders, Sultan Mahmood said, due to nuclear capability by both Pakistan and India, there are chances of escalation in the tension on the borders.

Answering a question, he said, if there will be a war, it will not be confined to Kashmir or one area.  He said any small incident can escalate the tension across LoC. On Indian proposal for joint military patrolling on LoC, he said, "We always suggest to increase the strength of United Nations Military Observer Group for India and Pakistan (UNMOGIP) to monitor the situation at LoC. He said India has always rejected this proposal. Sultan Mahmood Chaudhry said India has never accepted the proposal for bilateral negotiations between India and Pakistan and even saying no to third party mediation on Kashmir issue. He emphasised the need that there should be third party mediation and negotiations on Kashmir should be held between Pakistan, India and Kashmiri people. Sultan Mahmood said Pakistan has already shown its commitment to resolve Kashmir issue, now it is the time for India to show their commitment to it. He also suggested that the Kashmiris representing both, Azad Kashmir and occupied Kashmir should be allowed to meet at LoC or any other place. Regarding the wish of India to become permanent member of the Security Council, he said, there has been no moral justification as India has not implemented the resolution of SC of the UN on Kashmir and committing human violation. Answering a question about the Kashmir struggle, Sultan Mahmood clarified that it is purely indigenous as it was started after 1989 in response to Indian atrocities in the region. He said after the resolution of Kashmir issue both India and Pakistan do not need nuclear arms and both the countries can use their economic resources for the welfare of the people instead of spending on the defence. In case of any war, he said, entire nation is united and armed forces have full support and backing from the people within Pakistan and Kashmir. He said Kashmiris will defend AJK at any cost in case of war. About Almaty conference, he said, it has helped in putting more pressure on India to start negotiations to resolve Kashmir issue. Barrister Sultan Mahmood categorically stated that Pakistan is only providing diplomatic, moral and political support to Kashmiris in their struggle for independence. He said there is no involvement of Pakistani forces in the indigenous struggle of Kashimiris in occupied Kashmir. He said there were 1500 graves of those who lost their lives in the Kashmir movement and none of them is from Pakistan. Sultan Mahmood expressed concern on the statement of Foreign Secretary of UK Jack Straw, and said that he will discuss this statement with the Kashmiris living in UK during his forthcoming this month. He said he is starting special visits to various areas of Kashmir especially along the LoC.

China commits over dollar 1.5 billion economic assistance to Pakistan

BEIJING, June 8 (APP)-China has committed over $1.5 billion in economic assistance, credits and investments to Pakistan over the last two years. The cost of projects currently underway is estimated to more than $700 million while those in pipeline are worth 800 million dollars, official sources told APP here Friday. Two coal mine projects worth nearly $1 billion are currently under process on which an understanding has almost been reached.  The projects are expected to be completed in almost 8-10 years, after successful completion of their feasibility studies. The sources, however, said the Chinese companies, particularly in the oil and gas sector, were seriously considering the possibilities of involvement in the privatization and development of the oil and gas sector in Pakistan. China has also provided $500 million to Pakistan as temporary balance of payment support through a recently rolled over cash deposit with the National Bank of Pakistan for three years ending 2005. The leadership of the two countries at their recent meetings has decided to establish a comprehensive partnership in all fields of mutual interest, particularly in the economic field. The economic cooperation, between the two countries received special attention during the last two years, especially after the visit of Premier Zhu Rongji to Pakistan and later President Pervez Musharraf's visit to China. According to the sources, China's entry into WTO has opened new opportunities for Sino-Pak collaboration improving their economic ties. The sources suggested that the way, China is growing up as a major growing economic power, Pakistan is required to set up a Separate full-fledged Division to evaluate and re-determine the priority sectors of bilateral cooperation, and to ensure proper implementation of the projects already agreed upon between two sides in various sectors. This will help, the two most trusted friends in the region to proceed ahead in a well-organized and coordinated manner for achieving desired targets. The sources said maximum number of Pakistani businessmen needs to visit China to explore the growing opportunities in the Chinese market. Finance Minister Shaukat Aziz in an interview during his recent visit to Shanghai pledged to take further steps strengthening and expanding the administrative network to further enhance their economic collaboration. He referred to China's support in the development of Karakurm Highway, Gwadar deep-sea port, Saindek copper project, thar-coal field, Ghazi Barotha dam and many other such projects, which he said are monument of the sincere friendship. The government of President Pervez Musharraf, he said attaches high importance to its relations with China, particularly to further promote interaction among the business community. In order the facilitate the traders and the investors, he said the government of Pakistan will soon establish its liaison or consulate-general offices in Shanghai and Guangzhou, which are hub of the economic activities. In the recent years, the Chinese businessmen have shown keen interest to invest in Pakistan's industrial sectors, particularly in the fields of silk and textile. "They are seeking for the establishment of an industrial estate namely silk-park in Pakistan to promote this industry. The current level of Pakistan's exports to China and Hong Kong is to the tune of over $ 800 million (2000-2001). It is hoped the new initiatives will help to cross it to dollar one billion in the near future.  Pakistan has rich potential to increase its export to China, both of traditional and non-traditional items. Under bilateral agreement between the two countries, China will start supply of railway coaches and locomotives to Pakistan from this year to help implementing railways modernization plan. The Exim Bank of China has already committed to extend financial help of dollar 200 million to Pakistan for improving the overall quality of rail network. Pakistan, being close friend of China will need to take its due share in the Chinese growing market. China's foreign trade is expected to grow about six percent to 540 billion U.S. dollars in 2002, according to a report released in Beijing by the Chinese Academy of International Trade and Economic Cooperation (CAITEC). The sources predicted that China's exports would rise five percent while imports would increase seven percent in 2002. They assured that Chinese businessmen will give priority to their Pakistani friends to undertake joint ventures in various fields for mutual benefit, improving socio-economic life of their people.

Indonesian President urges Pakistan, India to enter into dialogue

ISLAMABAD, Jun 8 (APP): Indonesian President Megawati Soekarnoputri has urged leadership of Pakistan and India to exercise restraint and initiate a dialogue to defuse tension in the South Asian region. She emphasized Indonesia's concern about the situation in South Asia while talking to President Musharraf's Special Envoy Najamuddin A. Shaikh who called on her in Jakarta, says a message received here Friday. President Soekarnoputri said Indonesia would urge the leadership on both sides to exercise restrain and to enter in to a dialogue. The absence of dialogue could only worsen the situation, she added. The President said, Indonesia would do what it could to assist in this regard. The Special Envoy briefed the President about Pakistan's position on the current stand-off with India as a result of amassing of huge deployment of the Indian forces on the border and along the LoC. He also delivered a letter of President Musharraf regarding the current critical situation in South Asia and provided a detailed briefing on the situation that had been created by India's massive build-up of its arms forces on Pakistan's border, and its continued refusal to de-escalate the tension, and resume dialogue with Pakistan for all settlement including the problem of Kashmir. The Special Envoy also briefed President Megawati Soekarnoputri on the measures President Musharraf have taken to curb extremism within Pakistan and emphasized the sincerity of the Presidents commitment of not allowing the use of Pakistan territory for terrorists activities anywhere in the world. He referred in this context to the Presidents speech of 27th May, which he said contains an important reiteration of this commitment. Addressing recent developments, the Special Envoy stated that Pakistan had reservations about Indian proposal of joint patrolling along the Line of Control Jammu & Kashmir. Indian Defence analysts and the Indian Defence Minister also seem to regard the proposal as unworkable. He said, the Indian proposal appeared designed to divert attention from the growing international support for Pakistan's proposal to station impartial monitor on both sides of the Line of Control to verify Indian allegations. Pakistan had nevertheless stated that the proposal should be formally presented and be discussed along with counter proposals by Pakistan. The Special Envoy also conveyed President Musharraf's greetings to the Indonesian President and reiterated, on his behalf, the invitation extended to President Soekarnoputri to visit Pakistan. President Megawati thanked the Special Envoy for the briefing and asked him to convey her regards and her invitation to President Musharraf to visit Indonesia at a convenient date. Earlier the Special Envoy  was given a warm reception by Amien Rais, Speaker of the Peoples Consultative Assembly when he called on him at the Parliament Building. In response to the Special Envoy's briefing, Amien Rais recalled the bonds of friendship between Indonesia and Pakistan, the pride that the Indonesian people took on Pakistan's technological achievements and the concern they felt about the current situation in South Asia. He said that he would counsel the government to use its good offices to help in defusing the crisis and securing a resumption of dialogue between India and Pakistan. The Special Envoy will be meeting other members of the Cabinet, opinion makers and representatives of media during the remaining period of his stay in Indonesia.

SCO leaders call for resumption of dialogue between India and Pakistan

BEIJING, June 8 (APP): Leaders of Shanghai Cooperation Organization (SCO) at their meeting held at St. Petersburg called on India and Pakistan to resume political dialogue, so as to defuse tension between the two countries. Chinese sources told APP here tonight that the SCO leaders also expressed deep concern over the continued conflict in Middle East, saying that the situation in the region has affected the regional and global security and stability. On relations with Iraq, the declaration says the SCO members will continue political and diplomatic efforts along with other parts of the international community to ensure comprehensive implementation of all the U.N. Security Council resolutions concerning the issue of Iraq. They also agreed to establish a nuclear weapons free zone in Central Asia. The observance of the international nuclear non-proliferation regime is one of the most important factors in safeguarding peace and security in Asia and the whole world, says the Declaration of the SCO, which Leaders signed at the second summit of the SCO. The six countries, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, called on countries that have not signed or ratified the Treaty on the Non-proliferation of Nuclear Weapons or the Comprehensive Nuclear-Test-Ban Treaty to enter international framework as early as possible, which will be conducive to the strengthening of strategic stability at all levels. The declaration says the SCO supports the establishment of nuclear weapons free zones, including Uzbekistan's initiative to establish a nuclear weapons free zone in Central Asia. The SCO stresses that Mongolia's nuclear free status be respected and supported. The SCO welcomes the new treaty signed between Russia and the United States on further reducing their offensive strategic weapons sharply, which it considers as a positive contribution to promoting nuclear disarmament. The declaration calls for the start of multilateral negotiations at an early date to work out a comprehensive agreement on not deploying weapons in the outer space, nor using weapons directed toward the outer space. The presidents of the six member nations also signed an agreement on setting up a permanent regional anti-terrorism agency and strengthening cooperation among the member countries in the field of security. China called for greater efforts to institutionalize the SCO and make it more effective in regional security cooperation. Addressing leaders from the member countries of the SCO, Chinese President Jiang Zemin said that for now, the top priority task for the SCO was to gear up efforts to institutionalize the organization. Established on the basis of the former "Shanghai Five," a regional forum on security and economic cooperation among China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan, the SCO is comprised of the five former members plus Uzbekistan. The adoption of the SCO Charter at Friday's one-day summit was an important step in the course of institutionalization, and additional efforts should be made to work out other relevant documents, and to prepare for setting up a SCO secretariat and a regional anti-terrorism agency, the Chinese president urged. Jiang also said that it was of key importance for the member countries to close their ranks and step up their coordination in the future development of the SCO.

However, he stressed that to strengthen the unity and coordination among the SCO member nations does not mean to make the SCO a regional body exclusive to other countries and other organizations. China has always maintained that the SCO would uphold the principle of non-alignment, not targeting a third country or other regions, and being open to the outside world, he said. The SCO would actively seek dialogue, exchange and cooperation with other countries and international organizations, in the interest of regional stability and development, he added.

Indo-Pak conflict on Kashmir dominates SCO's proceedings

BEIJING, June 8 (APP) The leaders of China, Russia and four Central Asian countries met in Saint Petersburg Friday to discuss regional security, with their minds focused on the Kashmir feud between nuclear rivals India and Pakistan. The crisis over Kashmir between India and Pakistan was likely to give a sharp focus to SCO fears of a nuclear conflict in Asia and proliferation of weapons of mass destruction on the continent, analysts said, according to the Chinese's media reports "SCO could evolve into an organization trying to stave off a nuclear threat in Asia," said Viktor Kremenyuk, an international relations analyst with the Moscow-based USA-Canada Institute. The Shanghai Cooperation Organization, which comprises China, Russia Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, has voiced alarm at the escalating tension between New Delhi and Islamabad. President Jiang Zemin held two hours of talks with his Russian counterpart President Vladimir Putin and others heads of countries in the Shanghai Cooperation Organization (SCO) in the lavish 18th-century Petrodvorets palace outside Saint Petersburg. A Russian foreign ministry spokesman said Friday that both Moscow and Beijing "want stability in the region" of South and Central Asia. "Nuclear proliferation and the risk of a nuclear conflict are going to be the main problems in the future and nuclear powers such as China and Russia, both SCO members, have a role to play to prevent these threats," agreed Alexei Malashenko of the Carnegie Center for Peace Endowment in Moscow. In addition to Jiang and Putin, Kazakhstan's President Nursultan Nazarbayev, Uzbekistan's Islam Karimov, Tajikistan's Emomali Rakhmonov and Kyrgyzstan's Askar Akayev attended the summit, which was set to end with the signature of a charter boosting the SCO's status. The six presidents were also expected to set up a regional structure to cooperate in the fight against terrorism. Putin recently told Chinese reporters he hoped the summit would allow the SCO to "radically increase its role in insuring regional peace and stability".

Armitage discusses modalities of monitoring LoC with India

NEW DELHI, June 8 (APP): US Deputy Secretary of State Richard Armitage Friday said he had held discussions with both India and Pakistan on the "possibilities and modalities" of monitoring the Line of Control (LoC) in Kashmir but no decision has been taken as yet. After a 35-minute meeting with Prime Minister Atal Bihari Vajpayee, Armitage told newspersons that he felt tension is "a bit down on both sides". He said "I did have discussions both here and in Islamabad about the possibilities and modalities of monitoring the LoC, but no decision has been taken as yet as per my knowledge." "President Musharraf has made it clear to me that he intends to do everything he can to avoid a war consistent with the honour and dignity of Pakistan, Armitage, who arrived here this morning after holding talks in Islamabad, said. Stating that he has briefed the Indian leadership about the "tone, tenor and full content" of his discussions with President Musharraf. Musharraf "spent his time to explain his desire to avoid a war but consistent with honour and dignity of Pakistan. I didn't say he had promised anything," Armitage said in reply to a question. Describing his discussions with Vajpayee and other Indian leaders as "very good", Armitage said India also intends to avoid a war. Armitage said there are "people of goodwill" in both countries who want to bring down tension which is also the desire of the international community. To a question that there is a feeling that Washington is not doing enough, Armitage said "if that is the feeling then I am sorry.  But I think I found universal appreciation with the activities of the US and the United Kingdom in seeking to lessen (Indo-Pak) tension". About foreign media reports regarding deployment of helicopters to monitor the border, he said "these speculations seem to be far-fetched" as the high altitudes of the Himalayas cannot be patrolled.

Monitoring of LOC by UK-US troops is good proposal: High Commissioner

LONDON June 8 (APP): Pakistan High Commissioner to the United Kingdom Abdel Kader Jaffer on Friday welcomed the proposal of joint-monitoring of the Line of Control by  British and American troops. The idea was floated by UK Defence Secretary Geoff Hoon following meeting of NATO Defence Ministers in Brussels on Thursday. He said this option was being considered and according to press reports it had been put before the two countries for their consideration. "If Britian and American wish to send their troops to monitor the Line of Control, I think it is a very good idea. I think it is a very good proposal," he told APP while commenting on Hoon's statement that the option of sending Britain -American troops was under discussion. The High Commissioner said the forces of  UN Military Observer Group on India and Pakistan(UNMOGIP) were already monitoring both sides of the Line of Control. " British and American troops can become part of the UN observer group which was already there," said the High Commissioner. He said this would enable the world to see for itself that "Pakistan was not sending any infiltrators across the borders".

CUSTOMS (AMENDMENT) ORDINANCE, 2002 PROMULGATED

ISALAMABAD, June 8 (APP): President of the Islamic Republic of Pakistan Friday promulgated the Customs (Amendment) Ordinance, 2002 which shall come into force at once.

Following is the text of the Ordinance:

ORDINANCE NO.XXIV OF 2002
AN ORDINANCE

further to amend the Customs Act, 1969

WHEREAS it is expedient further to amend the Customs Act, 1969 (IV of 1969), for the purposes hereinafter appearing;

AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action;

NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No.1 of 1999 read with the Provisional Constitution (Amendment)

Order No.9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance:- Short title and commencement.- (1) This Ordinance may be called the Customs (Amendment) Ordinance, 2002. (2) It shall come into force at once. Amendment of section 19, Act IV of 1969.- In the Customs Act, 1969 (IV of 1969), in section 19, after sub-section (2), the following new sub-section shall be added and shall be deemed to have always been so added, namely:-

(3)   Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms Act, 1992 ((XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court, no person shall, in the absence of a notification by the Federal Government published in the official Gazette expressly granting and affirming exemption from customs duty, be entitled to or have any right to any such exemption from or refund of customs duty on the basis of the doctrine of promissory estoppel or on account of any correspondence or admission or promise or commitment or concessionary order made or understanding given whether in writing or otherwise, by any government department or authority."

President promulgates Sales Tax (Amendment) Ordinance 2002

ISLAMABAD, Jun 8 (APP): President, General Pervez Musharraf on Friday promulgated the Sales Tax (Amendment) Ordinance 2002, further amending the Sales Tax Act, 1990. The Ordinance will come into force at once. Following is the text of the Ordinance:-

ORDINANCE NO. XXV OF 2002.
AN
ORDINANCE

further to amend the Sales tax Act, 1990.

WHEREAS it is expedient further to amend the Sales Tax Act, 1990, for the purposes hereinafter appearing;

AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action.

NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the Fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance:-

1.         Short title and commencement.- (1) This Ordinance may be called the Sales Tax (Amendment) Ordinance, 2002. (2)  It shall come into force at once.

2.            Amendment of section 6, Sales Tax Act, 1990.- In the Sales Tax Act, 1990, in section 6, after sub-section (I), the following new sub-section shall be inserted and shall be deemed to have always been so inserted, namely:-

"(1A) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms Act, 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court whether passed, before or after the promulgation of the Finance Act, 1998 (III of 1998), the provisions of section 31-A of the Customs Act, 1969 (IV of 1969), referred to in sub-section (1) shall be incorporated in and shall be deemed to have always been so incorporated in this Act and no person shall be entitled to any exemption from or adjustment of or refund of tax on account of the absence of such a provision in this Act, or in consequence of any decision or judgment of any forum, authority or court passed on that ground or on the basis of the doctrine of promissory estoppel or on account of any promise or commitment made or understanding given whether in writing or otherwise, by any government department or authority."

GENERAL PERVEZ MUSHARRAF
PRESIDENT