1. India calls for decisive and conclusive dialogue with Pakistan on Kashmir. On 18 April, in a surprise move, the Indian Prime Minister, Mr Vajpayee, said in Srinagar that dialogue is the only way to end decades of hostility between his country and Pakistan. He reiterated this announcement two weeks later in Delhi stating that he wanted to start “decisive and conclusive dialogue” with the Pakistani leadership. Pakistan was quick to respond, welcoming Mr Vajpayee’s statement and proposing a summit in Islamabad. This was followed by confidence building measures including restoration of ambassador level relations, sports, road and rail links. Air links may also be resumed later in the year. An early top-level summit in Islamabad, however, would seem unlikely. Earlier during the month, tension between India and Pakistan was on a high note as India continued to accuse Pakistan of cross border infiltration by terrorists. Moreover, the US Government strongly rejected the Indian statement that ‘India has a much better case to go for preemptive strikes against Pakistan than the US has in Iraq’ saying that the US is striving for peaceful settlement of differences between the two countries.

2. Economic Recovery. ‘Buoyed by continued macroeconomic stability, Pakistan's economy is expected to grow 4.5% in the fiscal year 2003 and 5% in 2004, according to an Asian Development Bank (ADB) report released on 28 April 2002.The positive outlook is subject to such risks as the possibility of renewed tensions on the border with India, political uncertainties that may unfold given that coalition governments are in place in the center and three provinces, and global economic uncertainties.’ The improved macro economic stability is, in part, due to increased donor and IFI support in return for Pakistan’s strong support in the war against terror. Pakistan has received substantial international financial support, including the rescheduling of its $12.5 billion foreign debt through the Paris Club of bilateral donors. Even though Pakistan’s key nuclear weapons development facility is currently under US trade sanctions the two countries signed a formal agreement on 5 April to write off US$1.0 billion debt. The US has also committed an additional US $ 47 million for counter terrorism, finger printing and improvement of the civil armed forces. In addition the US Government is, reportedly, preparing a special economic package for Pakistan for the year 2004. The areas to be included are debt relief, budgetary support and cooperation in the fields of defense, law & order, social services and border security.

3. Political Crisis. In October 2002, after three years of General Pervez Musharraf’s government, power was restored to an elected parliament and Prime Minister under an ‘amended’ constitution. The political opposition in the National Assembly, however, is now strongly rejecting the inclusion of a Legal Framework Order (LFO) that contains some 29 presidential amendments in the constitution and which provide for sweeping powers to the President for a period of five years. A committee has been appointed with representation from both sides of the house to come-up with a compromise formula. This formula, if accepted by the heads of all political parties, will be voted into law by parliament.

4. UN downgrades Security Phases in Pakistan. In view of the improved security situation, security levels in Pakistan have been downgraded by UNSECCORD as follows: Islamabad from phase 2 to phase 1; Punjab from phase 3 to phase 2; Peshawar from phase 3 to phase 2 and Interior Sindh from phase 3 to phase

B. IMPORTANT DRUG CONTROL AND CRIME-RELATED MATTERS

1. DRUG CONTROL

1. Poppy Eradication. Poppy cultivation in Pakistan has reached levels not seen since the mid-90’s. The very high prices for opium for the past two years and other factors have contributed to the massive resurgence in cultivation. The Government has made a sincere effort in the eradication of opium poppy including forced eradication resulting in a number of casualties. A total of 2000 Frontier Corps troops were deployed in NWFP. One wing of the Frontier Corps, an artillery battery and two APCs have been deployed in Dir for forced eradication as of 20th April 2003. One para military soldier and two farmers died when the government used force to overcome resistance.

In Baluchistan eradication of poppy encountered strong resistance. During a shoot-out with tribesmen a member of the Frontier Corps was killed. Seven others including three soldiers received bullet injuries during a shootout in Gulistan, which forms part of the semi-autonomous tribal region bordering Afghanistan.

NWFP: In NWFP poppy has been reported covering an area of 3,210 hectares of which 973 hectares are reported to have been eradicated by 5th May 2003. These figures do not include reported cultivation/eradication in Kala Dhaka and Kohistan as there are no firm estimates available for these areas. Of the 3210 Hectares cultivated in the NWFP only 237 Hectares were cultivated (178 Hectares eradicated by 5 May 2003) in the traditional poppy growing areas of Dir, Mohmand and Bajaur which have benefited from donor funded Alternative Development projects over the last 15 years. The bulk of the eradication still to be carried out (over 2,500 hectares) is in Khyber and Kurram tribal agencies and the District of Kohistan. At this stage it appears unlikely that the remaining poppy in Khyber Agency and the District of Kohistan (over 1600 Hectares) will be eradicated in time.Kohistan is an area where poppy has been cultivated for the first time. The area is very remote with no access roads making even an assessment of the extent of cultivation difficult.

Baluchistan: The Frontier Corps Baluchistan reported eradication of poppy cultivation of over 2000 hectares mainly in the Gulistan area near the border with Afghanista

1. CRIME

1. Anti Terrorist Activities. On 2nd April, Multan police arrested a leader of the outlawed Lashkar-i-Jhangvi a militant group, which is linked to the killings of Westerners and Pakistani minorities. On 3rd April, Pakistani security agencies arrested two suspected al-Qaeda operatives. The pair were arrested during a raid on a house in Peshawar. The suspects were believed to be linked to the murder, early March, of an official of Pakistan's military intelligence agency Inter Services Intelligence. Two gas pipeline were blasted near Sadiqabad, 30 kilometers off Kashmore, causing suspension of gas supply in Punjab and NWFP provinces. The attack disrupted supplies to almost half the country's industrial consumers. Rockets blew up two main pipelines bringing gas from the southern Sui and Qadirpur gas fields. A Pakistani court convicted four men over last year's car bomb attack outside the US consulate in Karachi, sentencing two of them to death. The men were found guilty of masterminding the bombing last June, in which 12 Pakistani were killed outside the US consulate. A fifth man was acquitted. The accused were all members of a radical offshoot of the Harkat-ul-Mujahideen militant group. A lawyer was shot dead inside a Pakistani courtroom in Karachi on 15 April when an assailant fired at a murder suspect but missed the target. Lawyer Ashraf Ali, involved in a separate case, was observing a bail hearing in the Sindh provincial High Court when an intruder barged in and fired at the defendant. The lawyer was hit by two bullets in his head and chest and he died on the way to hospital. The murder suspect, Matook Ali, survived unscathed. Two men were captured. The people, standing in the outskirt of the court, caught the murderers and handed over them to the police. The assailants were identified as Police Sub-Inspector Pir Bux Junejo and Behram. An Anti Terrorism Court (ATC) framed charges against five accused for hatching conspiracy to kill President Musharraf in Karachi. Five other accused in the case are absconders. ATC Judge Aal-e-Maqbool Rizvi in hearing the case at the Central Jail framed charges against accused al-Mujahideen-e-Aalimi activists Mohammed Imran, Mohammed Hanif, Sharib, Ashraf Khan and the Rangers Inspector Waseem Akhtar. All of them denied charges against them.

2. DRUGS Drug Seizures:

1 to 31 March 2003:

Opium	202.2 kg
Heroin	546.6 kg
Hashish	3,361.1 kg

C. PROGRAMME/ PROJECT IMPLEMENTATION AND DEVELOPMENT

1. PAK/94/840: Dir District Development Project (1994-2002). Project budget: US $ 14,291,600. (Project operationally closed in September 2002). The 2002 NEX audit has been completed and a draft report received.

2. PAK/99/D86: Drug Law Enforcement Programme for Pakistan (1999-2002). Programme budget: US$ 5,252,364; allocation advice for 2003: US$ 466,000. The installation of communications equipment is in progress at Coast Guards, Karachi. The foundations of the masts have been laid in designated areas along the coast. Expert technicians from Danimax are expected to arrive in May for the installation of the VHF and HF Radios. A two weeks basic drug law enforcement training has been carried out at Rangers HQ, Lahore. Sixteen participants from Police, Customs and Rangers were trained. As part of the regional precursor control project managed by UNODC New Delhi, a precursor control training was arranged for Pakistani drug law enforcement officers in Peshawar, Karachi and Lahore.

3. RAS/98/D18: Support to Drug Law Enforcement Programmes in SW, South and Central Asia, from within Regional Office SW Asia. (1998-2003). Project budget: US$ 215,000; allocation advice 2003: US$ 25,800. The Regional Law Enforcement Adviser (LEA) based in Kabul spent time in Islamabad to monitor the implementation of the Drug Law Enforcement Programme for Pakistan.

4. AD/PAK/01/F50: Establishment of a Network of Drug Treatment and Rehabilitation Centres. Project budget: US$ 547,000; allocation advice 2003: US$ 241,000. Fourteen out of a total of 16 treatment centers have been included in the network: four in NWFP, five in Punjab, three in Sindh and two in Baluchistan province. A total of 165 patients were treated in April 124 patients received family counseling and relapse prevention. A two weeks evaluation was carried out for 106 patients and 103 patients were evaluated after 6 weeks.

5. AD/PAK/01/F51:District Level Drug Abuse Prevention. Project budget: US$ 277,000; allocation advice 2003: US$ 70,900. District Drug Abuse Prevention Committees (DDAPC) have been established in 7 districts. Contracts for the support of DDAPC will be awarded in the month of May. A training workshop for focal points of NGOs has also been scheduled in May.

6. AD/PAK/01/F91: HIV/AIDS Prevention among Intravenous Drug Users in Karachi - a Pilot Project. Project budget: US$ 200,000; allocation advice 2003 US$ 76,700. The following services were provided by the two UNODC supported drop-in centers in Karachi in April: 55 new IDUs were registered, 5,476 syringes were distributed, 15,003 social services were provided to the clients, 6 clients were referred for detoxification, 7 for specialized medical services and 6 for surgical services. A total of 232 clients received counseling, and 48 advocacy initiatives were carried out with influential personalities in the area. 626 condoms were distributed.

Programme Development Comments were received from HQs on the draft Memorandum of Understanding between UNODC and the National Accountability Bureau. The proposed amendments were shared with NAB for the preparation of a final draft which then will need to be approved by the Prime Ministers Office.

D. IMPORTANT MEETINGS/ PLANNED UPCOMING EVENTS

The Officer in-Charge held meetings with representatives from the UK embassy in Islamabad, Andrew Smith from the UK Drugs and International Crime Department, and a representative from the Swedish embassy on the drug control situation in Pakistan. In addition, he attended a preparatory meeting chaired by the UK Deputy High Commissioner on the forthcoming Islamabad Dublin Group Meeting and the Annual General Meeting of FANC.