10 February 2005	Thursday	30 Zilhaj 1425

ISLAMABAD, Feb 9: Foreign Minister Khurshid Kasuri on Wednesday informed the Senate about details of Pakistan's objections on Baglihar Dam and expressed apprehension that India was likely to complete Phase-1 of the controversial project by year-end in violation of the Indus Water Treaty.

Foreign Minister Kasuri said Prime Minister Shaukat Aziz had raised the issue with his Indian counterpart during his visit to New Delhi. Both the leaders had agreed that a final effort would be made to resolve the issue by convening a meeting of water secretaries and Indus commissioners of both countries, he said.

In a written response to a question by Senator Hidayatullah Shah, the foreign minister said that after a delay of five months, the Indian government gave a response to Pakistan's objections on the Baglihar project on Dec 15, 2004.

"The data were analysed by us, which further strengthened our belief that the design of the dam is in violation of the provisions of the Indus Water Treaty," said Mr Kasuri.

Mr Kasuri said the final meeting to resolve the contentious issues had been held from Jan 4-7 in New Delhi and the Pakistani delegation proposed a focussed discussion on five issues of paramount concern to Islamabad.

Mr Kasuri told the Senate that during the meeting, Pakistan had argued that the Indus Water Treaty permitted construction of a "run of the river plant" on River Chenab and not a high dam of 475 feet. He said Pakistan had underlined that construction of such a magnitude would interfere in the flow of water to Pakistan and was not consistent with the treaty provisions.

Mr Kasuri said the treaty spelled out in detail the methodology for calculation of "firm power" and "pondage". He said the basis given by India for the calculation was violating the treaty provisions.

Mr Kasuri said after the inconclusive talks, the Indian side had proposed for more discussions after a few days, but Pakistan had made it clear that no further talks could be held unless India gave commitment for stopping all construction work at the project side pending the amicable settlement of all issues of concern to Islamabad. Mr Kasuri said India had refused to accede to Pakistan's demands.

Mr Kasuri said the Indian side had failed to respond to the objections raised by Pakistan.

SUGAR CRISIS: The opposition accused the government of creating sugar crisis and causing its price to reach Rs28 per kilogramme at a time when crushing season was at its peak in the country.

The matter came up under discussion during the question hour when Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Bosan was responding to queries about sugar put by a treasury member, Chaudhry Anwar Bhinder.

Former finance minister Senator Ishaq Dar said in 1998-99 the government had surplus sugar but now due to the faulty government policies the country was in the grip of severe sugar crisis.

PPP Senator Abdullah Riar termed Mr Bosan a spokesman for 'sugar mills mafia'.

In reply to a question, Mr Bosan said the mills had sold the sugar to the Trading Corporation of Pakistan (TCP) at Rs16.49 per kilogramme (Rs16,490 per metric ton).

When asked for comments regarding the amount of the premium payable by each sugar mill to the growers in each year since 2001 and the amount of premium paid to the growers each year during that period, the minister maintained that the issue was currently sub judice as it had been challenged by the millers in courts in Punjab and Sindh.

In 2003-04, the government had fixed Rs40, 41 and 42 per 40 kilograms as buying price of sugarcane in Punjab, Sindh and the NWFP, respectively, for the millers.

In 2002-03, he said, the same price had been fixed in Punjab and the NWFP but in Sindh the millers had to pay Rs43 per 40 kilograms sugarcane to the growers. This means that in 2003-04, growers in Sindh were getting Rs2 per 40 kilograms less than what they received in 2002-03 and there had been no increase in the price of sugarcane for the benefit of the growers since then.