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Pakistan scrounging for alleged pre-war dues worth $88m

Update : 15 Nov 2016, 08:38 PM

Islamabad has begun the process of asking Dhaka for around $88m that it says are "outstanding dues" that Bangladesh owes Pakistan.

According to a Pakistan Express Tribune report, Pakistan's central bank has written to Pakistani commercial banks and development finance institutions, asking for details of assets and other dues receivable from Bangladesh and India.

No Bangladesh government officials have yet commented on the matter.

The State Bank of Pakistan (SBP) circular says the receivables and assets include land, buildings, furniture and fixtures, office equipment and vehicles, government securities, papers, loans, advances and investments.

According to SBP figures, the value of assets in Bangladesh’s possession is more than 9.21bn Pakistani Rupees, approximately $88m, at the end of June 2016. India is estimated to owe 6bn Pakistani Rupees, roughly $57m.

Pakistani Banks and financial institutions were also asked to provide details of any write-offs they made in respect of assets or dues.


Also Read- Pakistan still owes Bangladesh Tk18,000cr


The Express Tribune report, quoting SBP figures that Bangladesh as the then East Pakistan owed Pakistan's federal exchequer, said the money in question included transactions between government offices, loans, advances and papers.

Details from banks and financial institutions that will be provided to the SBP are expected to increase the estimated outstanding dues.

Pakistan says India has been Pakistan’s debtor since the time of partition. These debts include gold reserves, sterling securities, Indian securities, rupee coins and Pakistan’s share in the Indian currency at the time of partition.

Md Shahidul Haque, secretary of Foreign Affairs Ministry, declined to comment on the matter when contacted by the Dhaka Tribune. The issue came to the fore at a time when a serious discussion kick started in Bangladesh public sphere regarding what Bangladesh is supposed to receive from Pakistan as pre-Liberation War dues. In 2015, Bangladesh Foreign Minister AH Mahmood Ali told the Jatiya Sangsad (Bangladesh Parliament) that Pakistan owes Tk18,000 crore (approx $2.3bn), which includes $2.16bn – half of the wartime reserve of undivided Pakistan – and $200m as the 1970 cyclone relief donated by foreign governments. He also said these financial issues had been raised in all bilateral talks since 1977 but the Pakistan representatives are yet to respond on the matter.
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