division of assets with Pakistan

Issue still festers

Even though 45 years have passed, Pakistan is yet to settle the division of assets with Bangladesh, as successive regimes in Islamabad have ignored the issue. Ironically, at such a juncture, Pakistan’s government has decided to demand PKR 9.21 billion (USD 90 million) as its outstanding dues from Bangladesh. According to claims by Bangladesh, Pakistan is liable to hand over assets worth some USD 4.32 billion due to it. These assets are drawn mainly from the exports of jute during 1947 to 1971, and are reserved at the State Bank of Pakistan. A Pakistani daily, ‘The Express Tribune’, yesterday published a report that says: “The federal government has decided to demand its outstanding amount from India and Bangladesh”. The report said “the State Bank of Pakistan (SBP) has written to all commercial banks and development finance institutions, asking for details of accounts of assets and other dues receivable from the two countries.
The purpose is to compile a final assessment of the amount due against India and Bangladesh.” According to SBP figures, India and Bangladesh have to pay Pakistan PKR 15.25 billion. The value of assets occupied by India was allegedly PKR 6 billion at the end of June 2016 while Bangladesh had to pay, what it claimed, more than PKR 9.21 billion.
A circular issued by the SBP to the heads of banks and financial institutions advised them to provide complete details of the dues that are outstanding against the governments or central banks of India and Bangladesh in terms of land, buildings, furniture and fixtures, office equipment and vehicles, government securities, papers, loans, advances and investments. They were also asked to provide details of any write-offs they have made in respect of assets or dues. According to SBP statistics, India has been Pakistan’s debtor since the time of Partition and the amount of the dues exceeds PKR 6 billion. These include gold reserves, sterling securities, Indian securities, rupee coins and Pakistan’s share in the Indian currency at the time of Partition.
According to the Pakistani daily’s claim, Bangladesh—as East Pakistan—owed Pakistan PKR 9.21 billion by June 30, 2016, in respect of transactions between government offices, loans, advances and papers. The details that will be provided to the SBP are expected to increase the total dues.
Though Pakistan wants to claim PKR 9.21 billion from Bangladesh, the international community actually provided grants worth USD 200 million for the victims of the devastating cyclone in the then East Pakistan in 1970. This amount was kept reserved at the Dhaka branch of the State Bank of Pakistan. But the Pakistan government transferred the amount to the Lahore Brach of the bank during the Liberation War in 1971. Bangladesh is actually the legal owner of USD 200 million as the grant provided by the international community for the Bangalee cyclone victims.
During the regime of Gen. Ziaur Rahman in 1977, it was decided to settle the division of assets between Bangladesh and Pakistan through examination at the foreign secretary level. Both sides were scheduled to hold a meeting on the issue in 1980. Though Bangladesh exerted pressure on Pakistan to hold a meeting on the issue, Pakistan is yet to respond. During the visit by the then Pakistani prime minister, Benazir Bhutto, in 1989, Bangladesh raised the issue and proposed to form a commission similar to the one formed during the Partition of India at the end of British rule. Bangladesh also raised the question of international arbitration of the issue as an alternative. After the visit, a joint statement said both sides had agreed to resolve the issue on the sharing of assets. The issue came into the limelight again when Khaleda Zia, then prime minister of Bangladesh, visited Pakistan in 1992. The premiers of the two countries again agreed to settle the issue.
However, Pakistani foreign secretary Shamshad Ahmad rejected Bangladesh’s demand in 1997, when the then Bangladesh foreign minister Abdus Samad Azad raised the question during his visit to Pakistan. Bangladesh again raised the issue in 2004, when Bangladesh’s foreign minister M Murshed Khan visited Pakistan.
The issue was also raised a number of times by the immediate past foreign minister, Dr Dipu Moni, during her term.
Dr Dipu Moni sought Pakistan’s understanding and recognition of Bangladesh’s position on resolving the outstanding issues including the expression of a formal apology by Pakistan for the genocide and atrocities committed by the Pakistani military in 1971.
Dr Dipu Moni also wanted the issues of division of assets and war reparations settled.

 

division of assets with Pakistan

Issue still festers

Even though 45 years have passed, Pakistan is yet to settle the division of assets with Bangladesh, as successive regimes in Islamabad have ignored the issue. Ironically, at such a juncture, Pakistans government has decided to demand PKR 9.21 billion (USD 90 million) as its outstanding dues from Bangladesh. According to claims by Bangladesh, Pakistan is liable to hand over assets worth some USD 4.32 billion due to it. These assets are drawn mainly from the exports of jute during 1947 to 1971, and are reserved at the State Bank of Pakistan. A Pakistani daily, The Express Tribune, yesterday published a report that says: The federal government has decided to demand its outstanding amount from India and Bangladesh. The report said the State Bank of Pakistan (SBP) has written to all commercial banks and development finance institutions, asking for details of accounts of assets and other dues receivable from the two countries. The purpose is to compile a final assessment of the amount due against India and Bangladesh. According to SBP figures, India and Bangladesh have to pay Pakistan PKR 15.25 billion. The value of assets occupied by India was allegedly PKR 6 billion at the end of June 2016 while Bangladesh had to pay, what it claimed, more than PKR 9.21 billion. A circular issued by the SBP to the heads of banks and financial institutions advised them to provide complete details of the dues that are outstanding against the governments or central banks of India and Bangladesh in terms of land, buildings, furniture and fixtures, office equipment and vehicles, government securities, papers, loans, advances and investments. They were also asked to provide details of any write-offs they have made in respect of assets or dues. According to SBP statistics, India has been Pakistans debtor since the time of Partition and the amount of the dues exceeds PKR 6 billion. These include gold reserves, sterling securities, Indian securities, rupee coins and Pakistans share in the Indian currency at the time of Partition. According to the Pakistani dailys claim, Bangladeshas East Pakistanowed Pakistan PKR 9.21 billion by June 30, 2016, in respect of transactions between government offices, loans, advances and papers. The details that will be provided to the SBP are expected to increase the total dues. Though Pakistan wants to claim PKR 9.21 billion from Bangladesh, the international community actually provided grants worth USD 200 million for the victims of the devastating cyclone in the then East Pakistan in 1970. This amount was kept reserved at the Dhaka branch of the State Bank of Pakistan. But the Pakistan government transferred the amount to the Lahore Brach of the bank during the Liberation War in 1971. Bangladesh is actually the legal owner of USD 200 million as the grant provided by the international community for the Bangalee cyclone victims. During the regime of Gen. Ziaur Rahman in 1977, it was decided to settle the division of assets between Bangladesh and Pakistan through examination at the foreign secretary level. Both sides were scheduled to hold a meeting on the issue in 1980. Though Bangladesh exerted pressure on Pakistan to hold a meeting on the issue, Pakistan is yet to respond. During the visit by the then Pakistani prime minister, Benazir Bhutto, in 1989, Bangladesh raised the issue and proposed to form a commission similar to the one formed during the Partition of India at the end of British rule. Bangladesh also raised the question of international arbitration of the issue as an alternative. After the visit, a joint statement said both sides had agreed to resolve the issue on the sharing of assets. The issue came into the limelight again when Khaleda Zia, then prime minister of Bangladesh, visited Pakistan in 1992. The premiers of the two countries again agreed to settle the issue. However, Pakistani foreign secretary Shamshad Ahmad rejected Bangladeshs demand in 1997, when the then Bangladesh foreign minister Abdus Samad Azad raised the question during his visit to Pakistan. Bangladesh again raised the issue in 2004, when Bangladeshs foreign minister M Murshed Khan visited Pakistan. The issue was also raised a number of times by the immediate past foreign minister, Dr Dipu Moni, during her term. Dr Dipu Moni sought Pakistans understanding and recognition of Bangladeshs position on resolving the outstanding issues including the expression of a formal apology by Pakistan for the genocide and atrocities committed by the Pakistani military in 1971. Dr Dipu Moni also wanted the issues of division of assets and war reparations settled.