1. Diplomatic efforts to ease tension between Pakistan and India. The US Deputy Secretary of State, Mr Richard Armitage along with Assistant Secretary of State, Ms Christina Rocca visited both India and Pakistan mid-May and expressed cautious optimism with regard to the normalization of relations between the two countries. Mr Armitage held talks with Prime Minister Zafarullah Khan Jamali and Foreign Minister Khurshid Kasuri, ahead of a meeting with President Pervez Musharraf. Discussions centred on a recent thaw in relations between India and Pakistan. Meanwhile, European diplomats in Brussels were preparing to play a more effective, meaningful and active role in persuading the leaders of the two countries to draw up a 'pragmatic road map' to peace. India and Pakistan exchanged ambassadors and announced the restoration of civil aviation links on reciprocal basis followed by rail and bus links. Pakistan has appointed Mr Riaz Ahmed Khan, a high ranking diplomat as Pakistan's Ambassador to New Delhi. The Government of India have nominated Mr Shiv Shanker Menon. Pakistan's Foreign Minister, Mian Khurshid Mahmood Kasuri, visited the US between 13 and 17 May in preparation for the President's official visit to the United States in June 2003.

2. Internal Political Situation: The month of May has been dominated by increased opposition to the Legal Framework Order (LFO) and the situation in the NWFP. A bill introducing Sharia law in the province has been enacted by the NWFP Assembly. Twenty four District Government Nazims (district heads) in NWFP threatened to resign in protest against alleged victimization by the NWFP Government.

a) LFO: The Government formed a bipartisan committee to arrive at a consensus on seven contentious issues in the LFO. The 11-member government-opposition committee, grappling with the Legal Framework Order (LFO) for several weeks, formulated its recommendations on 19 May 2003 with elaborate dissenting notes by the opposition parties differing among themselves and with the government. The major issues were the proposed creation of a National Security Council, the restoration of Article 58-2b empowering the President to sack the Prime Minister and Parliament and a President in Uniform. There has been some apparent understanding on the first two. There is a stand off on the question of General Pervez Musharraf remaining a President in uniform. The major stumbling block appears to be that General Pervez Musharraf insists on retaining his position as Chief of Army staff while he remains President. This is being vehemently opposed, by the opposition. Pakistan received a major setback when the 57-nation Commonwealth refused to restore its membership until differences between government and opposition on the Legal Framework Order are resolved.

b) NWFP: Legislators in Pakistan's North-West Frontier Province have passed a bill introducing Islamic Sharia law. It is the first time the strict code, based upon the teachings of the Koran, has been put into force in Pakistan in the country's history. The bill gives Sharia precedence over secular provincial law and stipulates that every Muslim will be bound by it. The bill still needs the signature of the provincial governor to become law. The planned creation of a Department of Vice and Virtue has prompted concern among some people who recall pictures of the Taleban vice squads dispensing summary justice in Afghanistan. An extremist splinter group from with the MMA (Muttahida Majlis e Amal) ruling party in NWFP destroyed some bill boards featuring female models. The federal Government responded by transferring the Chief Secretary (head provincial bureaucrat) and the Inspector General of Police. The federal government took action without consulting the NWFP government which resulted in tit-for-tat verbal sparring between the federal and NWFP governments.

3. Economic Recovery. The Pakistan Annual Economic Survey 2002-2003 released by the Government records '… an impressive growth in per capita income, both in rupee and dollar terms and national savings reaching new heights - exceeding total investment and suggesting a large surplus in the current account balance'. Between 2001 and 2002 Pakistan's gold and foreign exchange reserves almost doubled in the aftermath of September 11 and Pakistan's support in the war against terrorism. An amount of US $ 11.5 billion has been rescheduled in Pakistan fiscal year 2002-2003. The US Government cancelled a US$ 1.0 billion debt to Pakistan. The Government of Pakistan is expecting a further cancellation of US $ 1.8 billion loan by the US Government. Pakistan's increased emphasis on social sector development is receiving increased donor support. In May 2003 the Asian Development Bank (ADB) announced a 3.4 million dollar grant to Pakistan to boost health services and nutrition levels for poor women and children. In the same month the World Bank announced a US$20 million grant to eradicate polio in Pakistan, one of the few countries in the world where the disease is still prevalent.

B. IMPORTANT DRUG CONTROL AND CRIME-RELATED MATTERS DRUG CONTROL

1. Poppy Eradication. As of 16 May 2003, the Government of Pakistan reported 5,691 hectares of poppy cultivation, approximately forty percent (2,358 hectares) of which was reported to have been eradicated. 3,870 hectares had been planted with opium poppy in the areas of the North-West Frontier Province. Of the 1821 Hectares reported to have been cultivated in Baluchistan Province; the Frontier Corps reported the eradication of about 50 percent (908 hectares) of opium poppy crop. Eighty percent of poppy cultivation in Baluchistan Province was concentrated in the Gulistan area of Pishin District close to the border with Afghanistan. It is noteworthy that this is the first time that cultivation on an important level has been reported from Baluchistan Province. In total, over 95 percent has been cultivated in non-traditional poppy growing areas including over 1800 hectares in Baluchistan Province.

2. CRIME

a. Anti Al Qaeda Operations: US President George W. Bush praised Pakistan for arresting six suspected members of Osama bin Laden's al-Qaeda network in May 2003, calling it a major coup in the global war on terrorism. Mr Bush specifically hailed the detention of Waleed Mohammad bin Attash, alias Khalid, a Yemeni believed to be linked to the October 2000 suicide bombing of the USS Cole. On 3 May 2003, two suspected al-Qaeda operatives were arrested in Balochistan when law enforcement agencies raided a house in Windar. One of the arrested, Jawad al-Bashar (Egyptian) is suspected of being a close companion of Khalid Shaikh Mohammed, a top al-Qaeda.leader. On 15 May 2003, Pakistani and American intelligence officials arrested one suspected al-Qaeda operative, Haffan al-Hashim, of Middle Eastern origin, on a remote stretch of highway north of the port city of Karachi.

b. Terrorist Activities. On 7 May 2003, Islamabad Police arrested four suspects with a big cache of arms. SSP Islamabad ordered high alert of the police in the capital city with deployment of police to all entrances of the city. Four men, Dilawar, Pervez, Azhar and Shahkar Hussain were apprehended with five rocket launchers, two rifles, 30 pistol rounds, 10 magazines and other ammunition. On 15 May 2003, bomb blasts were reported at 11 petrol filling stations in Karachi. A man was injured in the blasts when the devices went off. No loss of life was reported. A group calling itself the 'Muslim United Army' claimed responsibility for the blasts at the Shell and Caltex petrol pumps. They warned the government of bigger attacks in future if acts are continued against 'Mujahideen Islam'. Security measures have since been reinforced at gas filling stations and the foreign enterprises in Karachi. On 23 May 2003, unidentified gunmen shot dead five people and wounded three others outside a courtroom in Lahore. The victims were among a group of people leaving the Session Court in the city centre when the shots were fired. It is suspected that the shooting may be related to a dispute between rival criminal gangs. 2. DRUGS Drug Seizures: 1 to 30 April 2003: Opium 1260.2 kg Heroin 2310.2 kg Hashish 3,878.1 kg Earlier in the year, there was a seizure of some 10,000 tablets at Lahore Airport that were suspected to be amphetamine. Initial results by the Lahore chemical examiner, however, showed a content of only 4.67 mg of amphetamine, a permissible level. There was concern over the result and a five member board constituted by the country's Chief Chemical Examiner re-examined the tablets and overturned the Lahore finding. He declared them to be ecstasy tablets. The tablets were carried by a passenger from London. This is believed to have been a 'free lance' attempt to sell them to the small but privileged youth of Lahore. The Lahore chemical examiner has been suspended pending an investigation. Both the Frontier Corps Baluchistan and Customs Baluchistan reported large seizures. In their monthly statement for April, the Frontier Corps Baluchistan say they seized 2,243 kg of heroin/morphine and 1,559 kg charras (cannabis). There were only 0.77 kg seizures of opium. To add to this, on 18th May the FC Chaghai Militia seized 2.3 tonnes of morphine from an abandoned house in the Afghan refugee border town of Girdi Jungle. Initial laboratory tests suggest that it is very poor quality, but a definitive report is awaited. Customs on 6th May reported the seizure of 1,350 kg heroin from traffickers following a fire fight in an area close to Sulaiman Mountain in Southern Baluchistan. Again initial laboratory results indicate poor quality, but the definitive report is awaited. In Dhaka, Bangladesh, three Pakistani women were arrested in mid-May with 13 kg heroin (one of Bangladesh's largest drug seizures). The three women were routed from Pakistan via Dubai.

C. PROGRAMME/ PROJECT IMPLEMENTATION AND DEVELOPMENT 1. PAK/94/840:

1. 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. The Project Close out and Consolidation proposal approved by UNODC HQ has been discussed with the Government. The government has agreed to the proposal subject to some modifications. The payment of Gratuity to staff has been rejected.

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. Utilization: FoPak 35% UNOPS 17 %. The installation of communication equipment is in progress with Coast Guards, Karachi. The foundations of the masts have been laid all along the coast. A two week basic drug law enforcement training course has been carried out at Coast Guards premises, Karachi. Eighteen participants from Police, Customs and Coast Guards were trained. The Anti Narcotics Force Intelligence Database software is now ready following completion of installation in the Regional Directorate, Rawalpindi and Special Investigation Cell, Islamabad. Data entry is in progress.

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. Percentage Utilization: 33% The Regional Law Enforcement Adviser (LEA) based in Kabul spent some time in Islamabad to monitor the implementation of the Drug Law Enforcement Programme for Pakistan. Whilst on mission in Vienna, LEA also followed-up on the status of draft project document on the establishment of intelligence units.

4. AD/PAK/01/F50: Establishment of a Network of Drug Treatment and Rehabilitation Centres. Project budget: US$ 547,000; allocation advice 2003: US$ 41,000. Utilization: 31%. During the month of May 196 patients received treatment. Eighty three percent were new clients. Sixty four percent of the clients who received treatment were abusing heroin. Fourteen percent of the clients were injectors. Relapse prevention programme was administered to 90% of the clients. Seventy percent of the clients received individual and family counseling. Patients were assessed after 2 weeks (48 %) and 6 weeks (38%) respectively. After 12 weeks 23% were followed up. Fourteen of the clients were street addicts.

5. AD/PAK/01/F51: District Level Drug Abuse Prevention. Project budget: US$ 277,000; allocation advice 2003: US$ 70,900. Utilization: 13%. District Drug Abuse Prevention Committees (DDAPC) have been established in eight districts. Contracts for the support of DDAPC have been awarded. A training workshop for NGOs will be held in the month of June. Support for community based youth activities will be based on the proposals received from the NGOs working in the selected districts.

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. Utilization: 27%. During the month of May 2003 the following services were provided by the two drop-in centres in Karachi: A total of 82 new IDUs were registered, 6,944 syringes were distributed and 16,853 social services were provided to the clients. Referrals: Ten clients were referred for detoxification/rehabilitation, 11 for specialized medical services and 15 for surgical services. Three hundred and eighty one clients received counselling. Thirty two advocacy sessions were carried out with key influential of the area and 658 condoms were distributed.

D. IMPORTANT MEETINGS/ PLANNED UPCOMING EVENTS

The UNODC Country Office for Pakistan plans to conduct the following programme on 26th June, 2003. 1. a) UNODC has translated audio spots, developed by UNODC HQs into Urdu language. Radio FM 100 will air these messages for 3 days from Islamabad, Karachi and Lahore. FM 100 Radio is very popular among the youth. In addition, FM 100 will broadcast a live road show on which youth will talk about hazards of drugs abuse and how to prevent drug abuse. A panel of experts will answer the questions from youth related to drug abuse. b) NGOs and district administrations from 8 selected districts from all over Pakistan will organize various activities in their respective areas to celebrate the day. c) The Officer-in-Charge of the Country Office will participate in a live talk show which will be broadcast on national TV. d) The Ministry of Women and Youth Affairs, Government of Pakistan will organize a one day seminar on the "Effect of Drug Abuse on Women". UNODC will provide technical support.