Short Notes of banking for XII

Q.15. Write Short Notes.

PROMISSORY NOTE

The promissory note is one of the simplest forms of the credit instrument. Section 4 of the Act defines a Promissory Note as an instrument in writing not being bank note or a currency note containing an unconditional undertaking signed by the maker to pay a certain sum of money only to or to the orders of a certain person to the bearer of the instrument.

Characteristics of a Promissory Note

The essential characteristics of a promissory note are as follows

i. It is a written document signed as follows.

ii. It contains an unconditional promise to pay.

iii. Besides an acknowledgement a promissory note is an express promise to pay.

iv. Promissory note must always relate to a definite and certain amount of legal money of the country and not to foreign money.

v. It should not be a bank note or currency note.

vi. No particular from is prescribed for it.

vii. A promissory note is not payable to the bearer on demand.

viii. The person to whom the promise is made must be definite person.

DRAFT

A draft is a cheque drawn by one branch of a bank upon another situated at any other place required to pay a fixed / certain amount of money to a specified person or by his order. A bank draft may either by inland or foreign. Drafts are issued by benders after receiving written and signed applications. The person is required to remit the required amount of money along with its commission. The banker hands over the draft to the depositors and sends a credit advice to the branch upon which the draft is drawn.

Draft are a common media of transferring money from one place to another. They are of great importance for financing trade, specially foreign trade. The draft is also known as demand draft.

LETTER OF CREDIT

The letter of credit is a request made by the issuing bank to its correspondent or agent making the request on demand on any draft on the issuing bank up to the amount mentioned in the letter of credit. A letter of credit remains enforced for a fixed date only. They are issued only to the persons who furnish guarantee or securities or make payment of the full amount there in. The L.C’s are of great significance in international trade. Specially the importers and exporters frequently use them. It saves from the trouble of carrying money from place to place with the risk of loss or theft.

Crossing of a Cheque

Q.14. What do you understand by the term Crossing of a Cheque?

CROSSING OF A CHEQUE

A Crossing is a direction to the paying banker that the cheque should be paid only is a specified banker named in crossing. A cheque is said to be crossed when it bears across it is face the transfers lines without any words on them.

Crossing prevents the cheque from being cashed by anyone except the payee. This ensures safety of payment by means of cheques. It affords security and protection to the true corner. Cheques are crossed in order to avoid losses arising from open cheques. However it does not affect the negotiability of a cheque.

Endorsement

Q.13 (A). Define Endorsement.

Q.13 (B). What are the different kinds of Endorsement?

ENDORSEMENT

The word Endorsement has been derive from the Latin word ‘’Indorsum’’ which means ‘’on the back’’. Anything written or printed on the back of a deed or instruments is called endorsement. When the member or holder signs his name on the negotiable instrument for the purpose of negotiation i.e. direction to pay the amount to another person is called Endorsement. Section 15 of the Negotiable Instrument Act 1881 defines Endorsement as

When the maker or holder of a negotiable instrument sign the same, otherwise than as such maker for the purpose of negotiation on the back or face therefore on a slip of paper or so signs for the same purpose a stamp paper intended to be completed as a negotiable instrument he is said to endorse the same and he is called the endorse.

KINDS OF ENDORSEMENT

Different kinds of Endorsement are as follows.

i. Blank or General Endorsement

When the endorser simply put his signature on the back of the instrument without specifying the name of the endorsee, it is said to be general endorsement. The holder can convert it in full endorsement by writing the name of the payee above the signature of the endorsee.

ii. Special or Full Endorsement

It specifies in addition to the signature of the endorser the person to whom or to whose order the instrument is payable.

iii. Restrictive Endorsement

An endorsement which prohibited further negotiation of the instrument is called restrictive endorsement. For instance if a cheque is endorsed saying "Pay Aonly" or "Pay A for A/C of B" the endorsed has no power to transfer his right further.

iv. Partial Endorsement

An endorsement which makes the transfer of the instrument from the endorser to the endorsee after the fulfillment of stated conditions is called Partial Endorsement.

Sans Recourse

When a person wants to exclude his liability to the endorse or any subsequent holder in case of dishonor of the instrument. The Endorser fees himself from his liability on a negotiable instrument by writing the words SANS RECOURSE after the name of the endorsee. He should make it clean that he endorsee or the holder should not look to him for payment in case of the dishonor of the instrument. The endorsee may refuse to take an instrument with such an endorsement.

Dishonor of Cheque

Q.12 (A). What do you mean by Dishonor of a cheque?

Q.12 (B). Under what circumstances a cheque is said to be dishonored.

DISHONOUR OF A CHEQUE

The relation between a banker and his customer is that of a debtor and a creditor. Money deposited will always belong to the customer and the bank will be bound to return its equivalent to the customer or to any person to his order. But in certain cases a banker refuses to honour his customer’s cheque. When the payment of the cheque is refused by the bank, it is said to be dishonored.

REASONS FOR DISHONOUR

A cheque may be dishonored under the following circumstances.

i. When balance to the credit of the customer is insufficient to meet the cheque.

ii. When money deposited cannot be withdrawn on demand in the case of fixed deposit.

iii. When the customer closes the account before the cheque is presented for encashment.

iv. When the cheque is not properly drawn.

v. If the cheque is crossed but presented on counter for the payment.

vi. When the cheque is post dated.

vii. If death information of the A/C holder is received.

viii. If the A/C holder is declared insolvent by the law.

ix. If the A/C holder has stopped the payment.

x. If the signature on the cheque is different with the specimen signature.

xi. If the amount written in figures is different from the amount written in words.

xii. If the cheque is presented for payment at a branch other than the one where the customer has the account.

Kinds of Cheque

Q.11. Define the different types / kinds of a cheque.

TYPES / KINDS OF A CHEQUE

Cheque may be of different types. Some of them are

Order Cheque

Order Cheque is that which is expressed to be so payable or which is expressed to be payable to a particular person without containing words prohibiting transfer or indicating that it will not be transferable.

Open Cheque

They are payable in cash at the counter of the banks to the bearer of the cheque.

Crossed Cheque

These types of cheques are not in cashed at the counter but which can be collected only by a bank from the drawer bank. But these days an individual can also draw a crossed cheque for the purpose of safety and security in certain cases.

Bearer Cheque

A bearer cheque is that which can be cashed for the bank by the bearer of the cheque. Any person who is in possession of a bearer cheque can cash it without any difficulty.

Cheque

Q.10 (A). Define a Cheque?

Q.10 (B). Name the parties to a cheque.

Q.10 (C). What are the essentials of a cheque?

Q.10 (D). Draw a specimen of a cheque.

CHEQUE

Section B of the Act defines a cheque as, ‘’A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.’’ A cheque is a bill of exchange but a bill of exchange often is not a cheque. A cheque is always payable on demand. The person drawing or making the cheque must be a customer of the bank and must be having the required find as deposit with the bank.

PARTIES TO A CHEQUE

The parties to a cheque are

Drawer He is the maker of the cheque. He must be the holder of the account at the bank and must sign the cheque as per specimen signature.

Drawee He is the banker with whom the A/C is maintained by the drawer of the cheque.

Payee He is a person named in the cheque to whom or to whose order the payment is to be made.

ESSENTIALS OF A CHEQUE

A cheque must have the following features / essentials.

i. It must be in writing but should not be written by a pencil.

ii. It must be an unconditional order to pay. The drawer must not pay any condition for the payment of cheque.

iii. It must be signed by the person giving it.

iv. Cheque must be drawn upon a banker not else.

v. It must be for the payment of a certain sum of money only.

vi. Amount of money must be written in figures and words.

vii. The cheque must be payable on demand.

Credit Instruments

Q.9(A). Define Credit Instruments.

Q.9(B). Define the different kinds of Credit Instruments.

CREDIT INSTRUMENTS

Credit Instruments are the documents describing details of credit and debit. Credit Instruments provide a written means fro future reference describing terms and conditions of any debt and loan. Credit Instruments may be an order for payment of money to a specified person or it may be a promise to pay the loan. Credit Instruments generally in use are cheques, bills of exchanges, bank overdraft etc.

KINDS OF CREDIT INSTRUMENTS

There are two broad kinds of Credit Instruments.

1. Negotiable Instruments

According to the negotiable instruments Act under Section 13-A, A negotiable instrument means a cheque promissory note and a bill of exchange which are payable to the bearer of the instrument or the person to be ordered.

Features of Negotiable Instruments

i. It must be unconditional

ii. It must be in writing

iii. It is payable on demand or the period for the payment which is determined.

2. Non-Negotiable Instruments

Non-Negotiable Instruments can not be transferred or the documents which are restricted to transfer by the issuer e.g. Money Order, Postal Order, Shares Certificate etc. Such documents appears at the name of the beneficiary and the payments are made only to those persons to whom the instruments are made payable.

Central Bank - Credit

Q.3. Show how the Central Bank of a country controls CREDIT?

The modern economy is a credit economy. Credit is the life-blood of modern business. Accordingly control of credit is essential for stability and orderly growth of an economy. There are two types of controls used by the central banks in modern time for regulating bank advances.

i.Quantitive or General Control

ii.Quantitive or Selective Credit Controls

These are discussed below

i. Quantitive or General Control.

The aim of Quantitive Controls is to regulate the amount of bank advances i.e. to make the banks lend more or lend less. Some of the controls are

a. Manipulation of Bank Rate

The bank rate is the rate at which the central bank of a country is willing discounts the first class bills. It is thus the rate of discount of the central bank. If the central bank wants to control credit, it will raise the bank rate. As a result the market rate will go up. Borrowing will consequently be discouraged. Those who hold stocks of commodities with borrowed money will unload their stocks, since as a result of the rise in the interest. They will repay their loans thus the raising of bank rate will lead to a contraction of credit.

b. Open Market Operations

The term open market operations in the wider sense means purchase or sale of any kind of papers in which it deals like government securities or any other trade securities etc. In practice this term is used to identify the purchase and sale of government securities by the central bank. When the central bank sells securities in the open market it receives payments in the form of a cheque on one of the commercial banks. If the purchaser is a bank the cheque is drawn against the purchasing bank. In both cases the result is the same. The cash balance of the bank in question which it keeps with the central bank is to that extent reduced with the reduction of its cash the commercial bank has to reduce its loading. Thus credit contracts.

c. Varying Reserve Ratio

The varying reserve ratio method is comparative a new method of credit control used by central banks in recent times. The minimum balance to be maintained by the member banks with the central banks are fixed by law and the central bank is given statutory power to change these minimum reserves. Variations of reserve requirements affect the liquidity position of the banks and hence their ability to lend. It reduces the excess reserves of member banks for potential credit expansions.

d. Credit Rationing

Credit rationing means restrictions placed by the central bank on demands for accommodation made upon it during times of monetary stringency and declining gold reserves. The credit is rationed by limiting the amount available to each applicant. Further the central bank restricts its discount to bills maturing after short periods.

ii. Quantitive or Selective Controls

In this regard the following methods are used.

i. Varying Margin Requirement

The central bank controls credit by varying margin requirements. While lending money against securities the bank keeps a certain margin. They do not advance money to the full value of the security pledges for the loan. If it is desired to curtail bank advances the central bank may issue directions that a higher margin be kept. The raising of margin requirements is designed to check speculative in the stock market.

ii. Regulation of Consumer Credit

A part from credit for trade and industry a great deal of credit in development countries at any time may be for durable consumer goods like houses, motor cars, refrigerator etc on purchase or installment credit system. Central seek to control such credit in several ways. e.g.

• By regulating the minimum down payments in specified goods.

• By fixing the coverage of selective consumer goods

• By regulating the maximum maturities on all installments credits.

iii. Direct Action

Direct action implies measures like refusal on the part of the central bank to rediscount for the banks whose credit policy is not in accordance with the wishes of the central bank or whose borrowings are excessive in relation to their capital and reserves.

iv. Moral Suasion

The central bank may request and persuade member banks to refrain from increasing their loans for speculative or non-essential activities.

v. Publicity

The method of publicity is used by issuing of weekly statistics, periodical review of the money market conditions, public finances, trade & industry the issue of weekly statements of assets & liabilities in the form of balance sheets.

BANKER'S BANK

Broadly speaking the central bank acts as a bankers bank in three capacities.

i. As the Custodian of Cash Reserves

In every country its commercial bank keeps a certain percentage of their cash reserves with the central bank. Infact the establishment of central bank makes it possible for the banking system to secure the advantages of centralized cash reserves.

ii. As Lender of the Last Resort

As a lender of the last resort in times of emergencies the central bank gives financial accommodation to commercial banks by rediscounting by bills. The monopoly of note issue and centralization of cash reserves with the central bank increase its capacity of growing credit and thus to rediscount the bills as the lender of last resort.

iii. As a Bank of Central Clearance

The central bank act as a clearing house for member banks. As the central becomes the custodian of cash reserves of commerce was banks it is an easy and logical step for it to act as a settlement bank or clearing house for other banks as the claims of banks against one another are settle by simple transfers from and to other accounts.

CONTROL OF CREDIT

By far the most important of all central banks in modern times is that of controlling credit operations of commercial banks i.e. regulating the volume and direction of bank loan. On the level or volume of credit depends largely the level employment and the level of prices in a country.

Maintenance of Exchange Rates

Another important function of a central bank is to keep stable the foreign value of the home currency. A stable exchange rate is necessary to encourage foreign trade and inflow of foreign investment which is so essential for accelerating the pace of economic growth particularly underdeveloped countries.

Custodian of Cash Reserves

It is the central bank which serves as the custodian of a nation’s reserves of gold and foreign exchange. It is the duty to take appropriate measures to safeguard these reserves.

Functions of a Central Bank

Q.2 Indicate the different functions of a Central Bank.

A Central bank performs many important and essential functions which are described as follows:

MONOPOLY OF NOTE ISSUE

Formerly in certain countries, many banks issued their own notes. This resulted in uncontrolled confusion. Hence, gradually the right of note issue was withdrawn from ordinary banks. Note issue became the sole privilege of the central bank. Today the central bank in every country enjoys the exclusive privilege of bank note issue.

BANK TO THE GOVERNMENT

This function of a central bank may be studied under the following two heads.

As Banker to the Government

As governments’ banker, the central bank keeps the deposits or banking accounts of government departments’ boards and enterprises. It advances short term loans to the government in anticipation of collection of taxes or the raising of loans from the public. It also makes extra-ordinary advances during depression, war or other national emergencies.

As An Agent of the Government

As an agent of the government the central bank is often entrusted with the management of the public debt and issue of new loans and treasury bills on behalf of the government. Moreover the central bank is the fiscal agent to the government and receives taxes and other payments into its account.

Central Bank

Q.6. Define a Central Bank.

CENTRAL BANK

A banking system of a country without a central bank at the top in like a human body without a head. In the words of R.P. Kene ‘’’central bank is an institution charged with the responsibility of managing the entire monitory and banking affairs of the country in the nation’s interest.

The Central bank is generally recognized as a bank which constitutes the apex of its monitory structure, controls, directs and equalities the activities of other banks operating in the economy. A central bank has direct dealings with the governments and other banks. It is a separate branch of banking having distinct functions quite different from other banks. It operates not for profit sake. But with an objective of bring in economic prosperity to the people and ensuring economic stability in the country.

Importance of a Bank

Q.5. Discuss the importance of a bank for a country.

IMPORTANCE OF A BANK

The importance of the banking system is to an economy no emphasis. A well organized banking system provides liquidity and mobility to the financial resources available in the economy. It helps the economy in the following regards.

1. BRING ECONOMIC STABILITY IN THE COUNTRY

The banks play a prominent role in providing stability to a country economically. It helps in getting out of depression or inflation. During depression the banks follow a cheap money policy and generate money income which pushes up the consumption level and the economy gets price support to reactivate production units and the produced level is enhanced which raises the employment level. The investment rises to stimulate saving and to expand which further increases employment opportunities. Similarly the banks specially the central banks take certain measures to control inflation in the economy. The central bank through it is well adjusted monitory policy stabilizes the internal price level and thus facilitates economic & development in the country.

2. CO-ORDINATION AMONG ALL THE UNITS

The banking system maintains coordination among all the units which are engaged in banking functions. It consists of collecting of surplus money from the people and lending them to the entrepreneurs who utilize it for productive purposes.

• Creating a country wide circulation of money through remittance facilities.

• Activating idle money to make them productive

• Provide finance by credit accommodation to different sectors of the economy.

3. ENCOURAGE SAVING

The banks encourage saving by providing safe custody and making it a source of income to the persons who save. The people having surplus money arising out of saving deposit it with the banks. The banks pay them interest and get them relief from burden of safety and other risks.

4. ACCERATE INVESTMENT

The banks constitute a source of accelerating investment in the economy. The funds collected from the depositors are used for financing development projects in the public and private sectors and for granting loans and advance for raising the production level of the country.

5. CAPITAL FORMATION

In any plan of economic development capital occupies a place of pivotal importance. Without capital nothing can be achieved effectively. Banks obimulatecapital formation in the country. Savings of the people is capitalized through lending by banks.

6. CREATION OF MONEY

Banks create money in the sense that through credit granted to entrepreneurs, whether to the private or government agents they increase supply of money which they manage because of inflow of fund through deposits. The development agencies manage to bridge the gap between the income and expenditure and thus the development work continues undisturbed

7. FACILITATE TRADE

The banks facilitate trade by furnish information regarding financial stability and dealings of the parties in the market to customers. They provide remittance facility to the entrepreneurs and help them in the settlement of transactions even at far places.

ACCEPTANCE OF DEPOSITS

Acceptance of deposits is perhaps the major functions that a commercial bank performs. It accumulates the scattered savings of the individuals and offers them attractive incentives to make deposits in the form of profit. The bank accepts three types of deposits from the public.

Fixed Deposit Account

Money in this account is accepted for a fixed period of time and cannot be withdrawn before the expiry of that period.

Current Account

The deposits can withdraw money from this account whenever he wants to. The banks generally grant no interest on this account. On the other hand it levies certain charges on the customer for the services rendered by it.

Saving / Profit & Loss Sharing Account

All the banks in Pakistan nearly have started accepting deposits only under Profit and Loss Sharing Accounts where the depositors share in profit and loss instead of getting interest (Commonly known as Profit).

ADVANCING LOANS

The second important function of a commercial bank is to advance loans. The banks advance certain types of loans to their customers such as:

Ordinary Loans

Here the banks give a specified sum of money to a person or firm against some collateral security. The loan money is credited to the account of the customer and he can withdraw the money according to his requirements.

NON-COMMERCIAL FUNCTIONS

The non-commercial functions of the commercial banks are as follows.

i. Agency Functions

Commercial banks act as the agents of their customers and perform agency functions as transfer of funds from one place to another. Collecting customer’s funds and crediting the same to their accounts. Sale & Purchase of shares and securities, collecting dividends on the shares of the customers and payments of insurance premium on policies of the customers.

ii. Purchase and Sale of Foreign Exchange

The bank also carries on the business of buying and selling of foreign currencies ordinarily their functions is performed by specialized banks known as Foreign Exchange Banks.

iii. Financing Internal & Foreign Trade

The bank finances internal and foreign trade through discounting of exchange of bills. This discounting business greatly finances the movement of internal and foreign trade.

iv. Creation of Credit

When the bank grants loan to its customers it opens an account in the borrowers name and credits the amount of the loan. Since the deposits of the bank circulate as money the creation of such deposits lead to a net increase in the money stock of the economy. This is known as Creation of Credit

v. Miscellaneous Functions

Bank performs different kinds of various services other than described above such as collect utility of bills on behalf of Government and other authorities. Provide valuable advice to customers about trade and business provide information about sale and purchase of shares and act according to Government policy like deduction of Zakaat and Islamic blessing System etc.

Kinds of Bank

Q.4. Explain some of the kinds of banks?

OR

How many types of banks are there? Briefly explain each of them.

OR

Write a short note on kinds of banks.

KINDS OF BANKS

Some important types of banks are as follows

i. Central Banks.

This bank is of great significance in the banking system of a country. Central Bank is considered as the Bank of government and directly or indirectly controls the activities of all the banks operating in the country. State Bank of Pakistan is the central bank of Pakistan.

ii. Commercial Bank

This is another most important type of the banking system. It is main function is to receive deposits, advance loans and discounting of bills.

iii. Industrial Bank

These types of banks provide loans to industries. Generally these banks advance loans for long periods.

iv. Agricultural Bank

The main functions of these banks are to provide loans for long and short periods to the agriculturists. Long period loans are used for acquisition of and improvement of land while short period loans are used for purchasing seeds manures and for current expenditure.

v. Exchange Bank

These banks deal in foreign currencies in the form of bill of exchange, drafts, telegraphic transfers etc. They buy and sell foreign currencies.

vi. Saving Bank

Saving Banks provide incentives to people of small means to save money. These banks provide monetary facilities to the people.

vii. Land Mortgage Banks

These banks are meant to provide loans to agricultural by mortgaging their lands. An agricultural has to mortgage his land if he wants to take loan from this particular type of a bank.

viii. Co-Operative Bank

Such types of banks are usually run by co-operative societies through its members. These are non-scheduled banks. They are meant for the benefits of the society and its members.

Word "Bank"

Q.3. Briefly state the history of the word “BANK”.

THE WORD “BANK”

The derivation of the World Bank has been differently given by different authors. Same authors think that the word “BANK” has been derived from the Italian word “BANCHI” or “BANCHERII”. The payable used in Italian Business Houses. Some believe that it is derived from the German word “BANCK” meaning heap or mounds. The first public bank of Venice established on 1157 is considered as the first ever Public Bank.

Origin of Banking

Question.2. Trace out the origin of banking.

OR

"Merchants, money lenders and gold smiths are considered to be the ancestors of banks"’’’. Discuss.

ORIGIN OF BANKING

It is very difficult to trace out the exact origin of banks. It is said that the evolution of banking business is as old as the concept of money. Crothers in his book AN OUTLINE OF MONEY says that the present day banker has three ancestors’ merchants, money lenders and gold smiths. A modern bank is something of these. It is believed that goldsmiths and grocers of primitive days started keeping deposits of valuables and jewelries people on the basis of their sound financial position in the community. They charged a certain amount from the depositors for the services rendered in keeping and preserving the valuables in safe custody. But they soon realized that only a small portion of metal and valuable deposited were taken bark by the people even at the expiry of the stipulated period. They therefore began to make profit by lending a part of these deposits. In case of lending, it was not always gold or silver, but issued their receipts which would pass among the people as if they were gold just like cheques in modern banks. The present day banks are performing the same functions as performed by the money lenders and goldsmiths of older days. Therefore it is believed that goldsmiths and moneylenders are the ancestors of banks.

Introduction to Banking

Q.1. Define and explain the term "Banking"?

The term bank or banking is one of those terms that are increasingly being used in business language. With growing importance of the financial sector of a country, Bank is considered to be the major role players.

DEFINITION

A bank is an institution that deals in money. But this definition does not cover all the aspects of banking business as it includes all persons dealing in money, which is not true to be more perfect we can say that ‘’’’’A bank is an organized house which borrows money from the people for the sake of providing loan or services of monetary nature to businessmen or need person.’’’’’

EXPLANATION

An institution that accepts money of the people or organizations in the form of deposits and does its business is called a bank. Banking system of a country refers to the working process followed by the banking institutions. It is identify through the relationship between the apex banks.

Essays for XII

CTBT

As we enter into the new millennium, we find that man has taken great strides on the path of scientific and technological advancements. We have harnessed all the resources of nature and made their maximum utilization for the benefit of human race. God has gifted man with various natural resources but it is up to us whether we use them for the welfare or destruction of mankind. Nuclear energy is one of such things that can lead us to the zenith of success and glory in the service of the suffering humanity or plunge us into the abyss of total annihilation.

In order to stop the horrific destruction caused by the explosions of atom bombs, the UN General Assembly adopted a treaty entitled Comprehensive Test Ban Treaty (CTBT) on 10th September 1996. It is yet to be signed by forty-four states after fives years, which include the seven nuclear capable states. It is indeed amazing to know that the United States and the other Western nuclear powers are bitter opponents of CTBT, while they enforce it on other nations of the world. Having conducted 715 out of 1030 known nuclear tests and exercising nuclear option, Washington was instrumental in having the NPT extended unconditionally and indefinitely all over the world.

Nuclear energy can be put to both constructive and destructive use. As we cast over eyes on the bitter and realistic side of the picture, we cannot help coming to the conclusion that nuclear weapons are monsters of death and destruction. The greatest danger from the misuse of nuclear energy lies in the possible temptation of a nation possessing it to employ it against another that does not. The scale of destruction by a nuclear weapon would make any normal political or governmental control virtually impossible. Looking at the other side, we find that nuclear energy can also be used for peaceful, constructive purposes. Radioactive by-products are used for treatment of various diseases. It can also help in producing electricity, which can be of great assistance in various projects. Hydroelectric power project can also make use of this energy, and thus add to the comfort of mankind. Nuclear energy can convert barren deserts into blooming fields, a stark requirement in these days of food shortages. It can help in banishing disease, taming turbulent rivers and making life more beautiful and happier.

The seven nations that possess nuclear energy must realize that nuclear weapons are not merely deadly weapons but are of a completely new nature. A part from the horrific destruction caused by their explosions, they can contaminate whole areas of the earth by radioactivity, which may last for even thousands of years.

The best solution lies in the fact that the countries possessing nuclear energy use it as a deterrent against war, and at the same time, explore possibilities for using it for the welfare of human race. A meaning full treaty should make linked to global disarmament, irrespective the nature of weapons. The use of nuclear weapons should be prohibited because the only hope of mankind’s survival is to abandon all these utterly destructive weapons for all time.

The Kashmir Problem

It was decided during the campaign of Pakistan, that the Provinces having Muslim majority should be included in Pakistan. The people of Kashmir were willing to join Pakistan but the Hindu Maharaja Gulab Sigh did against the wishes of the people. The entire valley of Jammu and Kashmir with its population of 25 Lac was sold by the British to a Dogra Maharaja for Rs 75 Lac. Pakistan took the matter to U.N.O. The United Nations appointed commission for a peaceful settlement of the Kashmir problem. The commission presented two resolutions on August 13, 1948 and January 5, 1949, which were re-accepted by the Indian and Pakistan governments and approved by the Security Council. The main points agreed upon were:

• Cease-Fire and the Demarcation of the cease-fire line.
• A free and impartial plebiscite in Kashmir under U.N.O.
• Withdrawal of forces of both the countries from Kashmir.

After the cease-fire, the Indian forces refused to withdraw from the Kashmir valley. In 1951, Dr. Graham tried to solve the problem but India rejected in February 1953. The Security Council appointed Gonar Jerring in 1957 but India did not agree to any proposal. At last on August8, 1965, a National Revolutionary Council was formed in occupied Kashmir and the Mujahids stood against Indian forces. India became so desperate and attacked Pakistan. Pakistan Army pushed back the Indian forces in a historical way. In 1971 war, Shimla Agreement was written but India did not agree to liberate Kashmir. Now again the people of Kashmir stood up against Indian forces and they are fighting for their freedom, which India has to accord them today ortomorrow. In the words of Late General Mohammad Ayub Khan, the Ex-President of Pakistan, Kashmir is a “Time Bomb” which would explode at its proper time and that time, we are sure, has come now. Kashmir is a part and parcel of Pakistan and we can never withdraw from this right.

The Duties of Women

Women play a very vital role in human progress and have a significant place in the society. They are not at all inferior to men. They are capable of sharing all the responsibilities of life. Man and woman have been rightly compared to the wheels of the same carriage. Islam has accorded an equal position to women in the society. Islam realized the importance of women and granted them a very dignified position equal to man.

The main responsibility of a woman is to preserve the human race. As a mother, her position is unique. She brings up the children with extreme care. The first school of a child is the lap of his mother. It is quite true that great man had great mothers. Napoleon said:

“Give me good mothers and I will give you a good nation.”

The progress of nation depends upon the way the mothers bring up their children. If the mothers are educated, the whole society will progress. Women have always played an important role in the progress of a nation. In the early days of Islam, women worked side by side with men. In the battlefield, they nursed the injured, kept up the supplies and in certain cases even fought bravely. Florence Nightingale was the woman, who led a very successful campaign for the reforms of hospitals and nursing profession. Women had been great saints, scholars, poets, writers, reformers and administrators.

Women should be given proper education and training. They should known what life is and how it should be lived. Educated women can do much to reform the society. Many disturbances in the society is created by those anti-social persons, who were brought up by wrong hands. In modern age, women are going very well in all the fields of progress. They are demonstrating their talents in best. They are serving as teachers, doctors, Engineers, Administrators and even head of the states. The literacy rate among the women so in Pakistan is very low. The need is to increase this ratio. More education among the women means the more progress of the society.

The Responsibilities of an Ideal Student

The purpose of education is to produce ideal persons to face the responsibilities of the future. This aim can be achieved only when the students are sincere and they acquire the education in the real sense. Just copying a few questions and passing the examination is not an education. A student can never be educated until and unless he does not put his heart and should to the cause of education. A student is a person, who devotes himself to the pursuits of knowledge and learning. It is therefore, the first and foremost duty of an ideal student to seek knowledge. The pursuit of knowledge demands hard work and full devotion. Unfortunately, the students do not realize their duties. They have confined the education. Their greatest purpose is to get good grade in the examination by hook or by crook. They adopt all the foul means to get through the examinations. The ideal student enriches himself with knowledge. In practical life only those students come out with best colors, who had acquired knowledge.

An ideal student enjoys learning. He goes deep and deep in search of the knowledge. He is not a bookworm. He knows that a healthy body is necessary for healthy mind. He takes interest in all the activities that promote his physical health. He goes to the play ground with the same pleasure and enthusiasm with which he studies in the library. An ideal student is not unsocial. He loves his fellow students and takes part in all the collective activities.

The ideal student respects and honours his teachers. He knows the place of teachers, who are opening the gate of glories for him. He is humble and obedient. The more he learns from his teachers, the more grateful he is to them. The more knowledge he gets, the more humble he becomes. An ideal student is not a frog in a well but a person with greater visions and ideals. He is regular and punctual. He does not participate in adverse and negative activities. He confines himself to his studies and task. He does not waste his time in useless deeds. He does not keep association with such elements whose purpose is to damage the cause of education. He believes in simple and plain living. He is kind and generous.

My Aim in Life

Aimless life is certainly a sin. Many people have no definite aim in life. They are like the travelers going a head without any destination. Such people lead an aimless life and what they do in life, is largely a matter of chance, determined by the circumstances in which they happen to be placed. Aimless people do not achieve any thing in life. They just live because they have to live. One should have a definite purpose of life. The people who want success in life, first of all, determine their target. They keep before them their circumstances, their virtuous, their qualities, their talents and their ability to work. They select some definite target of their life and remain successful.

Different people have different aims in life. Some aim at wealth, some at power, some at fame, some at business and some at education and knowledge. My aim is neither wealth nor fame. I wish to serve by country with best of my talent. I love Pakistan and I really believe that every body should think to make it a really great country. I want to become a doctor. It is a noble profession. In medical line, there is much more scope of service. This is my personal choice. My parents have compelled me to select it. I wish to become a very successful doctor in future. So I am studying hard to achieve my target. I have keen interest in medical line, so I do not feel any trouble in studying at all. After obtaining the medical degree, I plan to work in rural areas where there is much shortage of doctors. My father is well off man and I do not have any financial problem. I do not have the lust of money. I will go to the rural areas and shall help the poor people. I would be best sort of service. This will give me extreme satisfaction and that is the aim of my life.

I know, my profession is very dignified and it will help me to get peace and satisfaction in life. It provides you best chances of service. Sympathy to human being is the sympathy to one own self.

A Cricket Match

Cricket is one of the most popular and exciting out door sports. Some of us get the opportunity to play first class cricket, but there are millions who enjoy seeing it being played. It gives us moments of leisure and pleasure and fills us with a competitive spirit. I witnessed the demonstration of the greatest excitement and determination at National Stadium, Karachi.

It was a fine day. A large number of people including men, women and children from all walks of life gathered there to enjoy the match between Pakistan and New Zealand. To be a good sports team, one has to be aggressive and this was shown in the final between the tw3o teams. New Zealand won the toss and invited Pakistan to bat first. This was a big blunder that their captain had made. Shahid Afridi and Saeed Anwar were sent as openers. It was a right decision by the captain, because Shahid Afridi slammed the ball over the field. It was due to his hard hitting that Pakistan achieved a good start. Saeed Anwar was very careful and most of the time simply obstructed. The bowling was quite strong, due to which Saeed Anwar was not able to score a single run for the first fifteen minutes. But as time passed, he grasped the strategy of the bowlers and began to fully support Afridi. He completed his half-century by playing keen and beautiful shots. When he was at a score of 88, the first slip caught him smartly. In this way, the first wicket of Pakistan fell at a total of 130. After him, Shahid Afridi could not steadily face the bowlers and proceeded towards the pavilion in a short time.

Ejaz Ahmed began his batting when the Pakistani team was playing at 135. Along with Inzamam ul Haq, he pulled up the score to 170. The next four men were dismissed very quickly – two bowled one caught and one out leg before wickets. However Moin Khan made a stand and was able to increase the score to 218. At this moment, 10 overs remained Moin bowled and three wickets in hand. Wasim Akram played a beautiful inning and Pakistani team snatched a total of 269 for 8.

This terrifying score marked down the morals of the New Zealand Team. They made a poor start, as their first wicket fell when the score was only ten. However, their middle order batsmen made a great effort and cheered the Kiwi Team. Inzamam ul Haq was the person who caught the second middle order batsman at 70. The following batsmen also played quite well and rose up the score to 220 for 5. This situation was exciting and pointed out to the defeat if Pakistan. However, when Wasim Akram came to bowl, the hopes of Pakistanis revived. He bowled extraordinary well and just after 5 overs, the New Zealand team had reached to 260 for 7. The rival needed barely 10 runs to win in 1 over. The down order batsmen shook up well. Score kept on increasing gradually and they reached to 266. It was the last ball; New Zealand requiring 4 runs to win and Waqar Younis was on the other side of the wicket. As soon as he bowled, the wickets were slammed and Pakistan was granted another exciting victory over New Zealand. The crowd went in mad uproar, congratulating their national champions for the great success.

Life in a Big City

Karachi is the biggest city in Pakistan and also one of the most thickly populated cities in the world. Its population has increased rapidly and accordingly has given rise to many social problems. People of this metropolis are becoming more and more concerned about solving these serious problems, some of which are discussed below.

The ever-increasing rush of heavy traffic on the roads is resulting in heavy loss of human life. One day or the other, people suffer form accidents due to reckless driving. Some lose their vehicles and some go to the police. This is due to lack of civic sense in the citizens and violation of traffic rules. Traffic jams, road quarrels, untidiness and damage of public property is also a result of this problem. The government has not done any planning to control this situation in the past two decades.

In the same manner, the government has never emphasized upon population distribution. As a result, slum areas are rapidly being built, where poor labour lives. The disordered development of small houses is spoiling the outlook of the city, as well as creating problems of illegal electric connections, water supply and pollution. The authorities have failed to reclaim the locations from these people.

The academic career of children in Karachi is unpredictable due to lack of good schools and institutions. The need of recreational institutions, parks and play grounds is also felt at times and most of all joblessness creates problems for poor people.

Another problem faced by the citizens of the city is the frequent power breakdowns. Every other day, K.E.S.C cuts down the electric supply without notice. This becomes a great hurdle for industries and professional that use electric machinery for their work. Disturbance and shortage of water supply is also a cause of discomfort among the citizens. Sometimes, the dirty and unfiltered water becomes a major factor in food poisoning, which usually takes place on festive occasions, when demand of water in the city increases. Any measure to improve the supply of filtered water has also not been adopted by the government. Problems due to improper drainage system are also becoming a matter of concern among the people. The alarming in crease in the disorderliness of drainage lines is posing serious threats for people, especially in poor areas. Filth and dirt runs down a channel by the footpath and children play over it. We have malaria, cholera and dysentery still destroying our children because such things exist.

The attitude of beggars in Karachi is the most irritating problem. They are worthless idlers robbing good-natural people. It has become their regular practice to crowd public spots and cheat people. The adverse effects of begging problem are noticeable in sum areas.

There are too many dirty and ownerless dogs roaming about in the streets of Karachi. They spread many diseases and sometime become a danger by injuring people.

Lack of environmental care among people and drivers of public service vehicles is giving rise to pollution problems. Dust fills the air in most of the roads all the time. Improper turned cars fill the atmosphere with deadly smoke at hours of rush, which causes disease among the policemen and common public. The blowing of pressure horns is always there, deafening the ears.

Karachi is also often subjected to terrorist activities. Bomb blasts and firings at public spots are resulting in great loss of human life. The terrorists deserve no less than capital punishment. It is the duty of the police to intensify their investigation to stop such activities.

For the well to do class, life in Karachi may be fascinating, but for other citizens it is a center of drawbacks. It is only through the concentrated efforts of each and every person, including the members of law-enforcing and administrative agencies, can we overcome these serious problems of the metropolis.

Merits and Demerits of Science

As we turn over the pages of history, we come across the development made by man in different walks of life over the centuries. From the primitive Stone Age to the modern computerized era, every step of man has proved to be the milestone in the history of civilization. Modern science has evolved over a long period, and has now reached the peak of success. It has worked wonders in our life, but it cannot be said that it is altogether a blessing. When we look at the other side of the picture, we are filled with a sense of horror. The fear of war and destruction hangs over our heads all the time. In order to understand the creative and destructive aspects of modern science, we stand in need of an analysis that will help us differentiate between the good and the bad.

As we look over the brighter side of the achievements of science, we come to realize that there is hardly any sphere of life that has not been enhanced by the creative abilities of man. In the field of medical science, knowledge and research has gone to such an extent that almost all the ailments have found a cure. The threatening clouds of death no longer haunt the patients who were otherwise filled with despair. Epidemics have been wiped out, nutritional standards have been improved, drug therapy has been recognized and hygienic conditions are being created so that the new generation may enjoy a longer and better life.

In the realm of communication, modern scientific inventions have helped a lot. The far-flung corners of the world have been linked together with a wide spread air network. Distances have lost their meaning and thousands of miles can be covered within hours. Travelling today is not only swift, but also full of pleasure and luxury.

Modern science has opened new vistas of entertainment. All the new electronic gadgets have filled our lives with recreational variety. From the small pocket sized transistor to the big screen television and VCR, we are provided entertainment at home and we owe it all to science. Readers are provided illustrated, colorful books due to the blessing of modern science in the form of latest printing machines and techniques. Such means of entertainment have brought about a change in our habits and hobbies.

The advantages of science are not restricted to the urban population. In the fields of agriculture, forestry and fishery, science has provided the rural population with the latest implements and know-how. The new methods of agriculture have boosted the production of farms and fields. With the use of different kind pesticides, the crops remain undamaged and the tillers of the soil get better return of the labour. This increase in output not only improves the condition of the toiling masses, but also brings about a healthy change in the economy of the country. This keeps on moving the nations on the path of progress and prosperity.

As we cast our eyes on the other side of the picture, we cannot help coming to the conclusion that science is also the monster of death and destruction. Man is selfish and pugnacious by nature. To fulfill his jingoist designs, he stands in need of the most destructive weapons, which could bring about the annihilation of his rivals. Man has gained knowledge in the field of science, but due to lack of wisdom, he is misusing this knowledge. All big nations are thinking of fulfilling the dream of becoming the super power. The wars of today are not limited to the battlefield. It brings about epidemic killing of the civilian population. The knowledge of this domain has added immeasurable danger to war. All the leading powers posses fatal weapons, and it seems that the weaker countries are their mercy. These big nations talk a lot about reduction in arms and they hold disarmament conferences. However, their practice is quite contrary to their preaching.

Science, no doubt provides, new ways of entertainment, but these very means of amusement are bringing a sharp decline in the moral values of the young generation and equally sharp increase in the number of crimes. The TV and video provide entertainment but they quite often become the channels of vulgarity and obscenity. Moreover, new ways of crime are shown to younger people, who adopt the path of getting easy money.

Looking at the two aspects of modern science, we conclude that science by itself is neither good nor bad. It is the will and intentions of man, which makes him, put it to constructive use or take it to the path of devil.

Memorable Day in My Life

It was the 27th day of July and the last day of competition I had participated in the All Pakistan Software competition. I read the advertisement in the newspaper three months ago, in which software programmers were invited to send in their software for the competition. I worked hard for about one month and made the software, which was then selected by the panel of judges and I was invited to participate in the event. Now, after three restless days, the event was coming to an end. But, there was a closing ceremony to come, in which the best programmers were to be awarded prizes.

I had been waiting for the day with anxiety and curiosity. I got up early in the morning and prayed to God to grant me success. I was rather uneasy and restless. My mind was swinging between expectation and apprehension. It was an inexplicable situation of uneasiness and anticipation. I was not sure about what to expect. My parents and friends had high expectations of me. At one moment, I though that I would win but again I feared if I do not. I knew that there is always an element of chance, how good one may be. I was in a very disturbed state of mind.

The closing ceremony was yet to commence. The sand of time was running out. I was getting more and more restless. At last, I reached the exhibition hall and found my seat amidst the participants. The ceremony started with the speech of the organizing committee and then that of the chief guest. They all emphasized on the importance of software development in the country and measures for its promotions. Finally, the judges were invited to the dais to announce the best programmers of the competition. At once, absolute silence covered the audience. At the moment, I still remember that my legs were trembling and heart throbbing. In less than a minute, the judge announced the name of the person who had won First Prize in the big event – and that was me! I was filled with a feeling of greatest joy and excitement. I thanked God and ran to the stage with every body congratulating me. The chief Guest handed me the winning shield. I was requested to express a few words about my success. That was a speechless moment. Filled with emotions and in high spirits, I thanked God, my parents and all my friends who had helped me in my achievement.

When I reached home, my parents were exhilarated with delight and joy as I gave them the good news. My siblings rejoiced my remarkable attainment. When I informed my friends and relatives them came to congratulate me. Tea and sweets were served to all. Every body was in a jolly and happy mood. My mother prepared pleasant edibles for lunch and we dined altogether. Never before was I so happy.

In the evening, many other relatives and friends came to congratulate me. My father welcomed them cordially and thanked them for their kind visits. We passed the whole day cheerfully. In fact, it was the happiest day of my life, which I shall remember for many years to come.

Patriotism

Patriotism means love and regard for the country. It is a natural instinct that men loves the place where he gets birth and where he is brought up. It is one of the noblest passions of human nature. The love of country is natural and essential for every one. Man is a social animal. He cannot live alone. He needs the assistance of other human beings. So the people belonging to one country are brothers and they work for the collective interest of the country. They struggle to flourish their country. The man, who works against the interest of his country, is traitor and he does not deserve any sympathy.

The only way to serve Pakistan is that we must be sincere with out country. We must keep our personal interest behind and we must give supreme importance to the demands of our freedom. Country is not just a piece of land. It is not only the collection of mountains, rivers and valleys. It is the heritage of our dreams, aspirations, culture, traditions and our great religion. We love Pakistan because it is the centre of our hopes and future dreams. It is the land of our following generation. We must try to make it strong and undefeatable castle of Islam.

Patriotism is an active virtue. The real love urges man to do every thing in his power for the welfare of his country. It makes him perform his duties honestly and devotedly. Patriotism makes him a good citizen, who is always ready to serve his nation with best of his talents. A good citizen is always ready to give sacrifices for his nation. Patriotism is a sacred passion, which makes the nation really strong and honorable. It is our duty to keep this passion alive in our hearts.

The great wars of the world were won only because of the extreme sense of Patriotism. Only those nations in the world survive and distinguish themselves, whose citizens keep a high and a very positive sense of Patriotism. Pakistan can become a really strong country, when the people of Pakistan are patriots in the real sense of the world. Give you love to your country and it will give you all the blessings.