Post-Partition: India still owes Pakistan a little over Rs5.6b, says State Bank

[irfan_pak10]

KARACHI: When it comes to Pakistan-India relations, it’s not just the territorial disputes that refuse to fade away even after 67 years of the Partition.

According to the first annual report of the SBP for 1948-49, the two governments mutually agreed to end the RBI’s status of the common monetary authority from July 1, 1948, as Pakistan became “exposed to grave dangers” without the right to control its currency and banking.

The division of assets and liabilities of the Reserve Bank of India (RBI) post-1947 remains incomplete to this day. According to the State Bank of Pakistan (SBP), India still owes it a little over Rs5.6 billion – mainly on account of assets held with the RBI “pending transfer to Pakistan”.

In other words, the country’s central monetary authority believes India has yet to cough up money equivalent to the present-day value of the assets that RBI had refused to surrender to the government of Pakistan, although the latter was entitled to receive them post-Partition.

From the first-ever Statement of Affairs that the SBP issued on its second day of existence – July 2, 1948 – to the latest one released on June 27, 2014, the central bank has listed the unsettled claims on the RBI among its “assets” unfailingly for the last 66 years.

The SBP’s issue department – which deals with currency and the assets that underlie it – shows the outstanding claims on the RBI under two distinct categories of assets.

The bigger chunk, comprising gold coins worth Rs4.1 billion, sterling securities amounting to Rs501.6 million, government of India securities worth Rs240.4 million and Rs4.9 million of rupee coins, appears as assets held with the RBI pending transfer to Pakistan. The smaller chunk consists of “India notes representing assets receivable from the RBI”.

While the first set of so-called assets is self-explanatory, the second claim on the RBI needs detailed explanation.

As per the agreement between political leaderships of the two sides, the RBI was to remain the central monetary authority for both India and Pakistan post-Partition, with Indian notes to stay on as legal tender in Pakistan until September 30, 1948.

As for the Indian notes and coins present in currency chests in Pakistan on June 30, 1948, and the ones encashed during the next fiscal year, Pakistan was supposed to return these to the RBI. Subsequently, the SBP was to claim equivalent assets against these Indian notes and coins from the Reserve Bank of India.

See More: http://tribune.com.pk/story/736390/post-partition-india-still-owes-pakistan-a-little-over-rs5-6b-says-state-bank/

[notlist3d]

If a country wait's 66 years chances of getting paid seem to go down a lot.    If you look at war payments from WW1 and WW2 some are still not paid either.

Getting a huge amount of money from a country is just hard to do. Putting pressure on then is hard, and if you did most likely it would be financial pressure which would make payment even less chance of happening.

[bensam12345]

since if it is Indian national rupee INR = 86 million usd = 5.6b INR
or if it is Pakistani rupee PKR = 53 million usd = 5.6b PKR

made corrections, it is a big money, but each side will have its own story and most likely nothing good will come out of it unless united.

[bryant.coleman]

53 million USD is not a big amount. The net worth of the richest Indian is almost 500 times that amount. That said, any claim on the partition-related remittances has little chance of being accepted. It has been almost 7 decades now. For every claim by Pakistan, India might be having 10 counter-claims. It will be better to put this issue to rest.

[irfan_pak10]

53 million USD is not a big amount. The net worth of the richest Indian is almost 500 times that amount. That said, any claim on the partition-related remittances has little chance of being accepted. It has been almost 7 decades now. For every claim by Pakistan, India might be having 10 counter-claims. It will be better to put this issue to rest.

By the way I'm not going to take the money from any Indian here, in the form of btc  . Its our govt money they will get it, if they want it lol.

[panju1]

Return Pakistan occupied Kashmir, and take the money. 

[erikalui]

LOL The news articles is of the year 2014 

Here is another article which says the opposite: http://www.thehindubusinessline.com/economy/pakistan-owes-rs-300-cr-to-india-since-partition/article4465851.ece

Pakistan owes Rs 300 crore to India since Independence. This is what the Budget document for 2013-14 says.

The Annexure 5 (i) of the Receipts Budget for 2013-14 deals with the ‘Statement of Liabilities of the Central Government’.

It shows the total liabilities at Rs 56,51,784.22 crore for 2013-14. From this, Rs 300 crore is deducted as ‘Amount due from Pakistan on account of share of pre-Partition debt (approx)’. It may be mentioned here that while introducing the Budget for 1948-49 on February 28, 1948, R.K. Shanmukham Chetty, the then Minister for Finance, had put the rate of interest at around three per cent for the Rs 300-crore debt.

“Pakistan’s total debt is to be repaid in Indian rupees in fifty annual equated instalments for principal and interest. As a measure of assistance to the new Dominion in its earlier years it has been agreed that the first repayment should commence only in 1952,” he had said.

Introducing the Budget for 1953-54 on February 27, 1953, C.D. Deshmukh, the then Finance Minister, said: “In the Budget credit had been taken for a recovery of Rs 9 crore from Pakistan as the first instalment of its debt repayment to India but as it has not yet been possible to reach an agreement on the provisional amount of the Partition debt, this payment is likely to be carried forward to the Budget year.”

While presenting the Budget next year on February 27, 1954, Deshmukh said that he had taken credit for a recovery of Rs 18 crore from Pakistan on account of two instalments due from that country in repayment of the Partition debt.

In the Budget presented on February 28, 1955, he said: “The credit of Rs 9 crore which I had taken in the Budget from repayment of Partition debt by Pakistan has, however, not materialised so far, as, contrary to the hope which I had expressed in my Budget Speech last year, it has not yet been possible, for a variety of reasons, to reach a settlement with Pakistan over the outstanding financial issues between the two countries.”

____________________________________

I don't know who owes whom money but I am only aware of the fact that both India and Pakistan lost billions due to the British rule. First we need to get that money and the Kohinoor diamond as well 

[panju1]

I don't know who owes whom money but I am only aware of the fact that both India and Pakistan lost billions due to the British rule. First we need to get that money and the Kohinoor diamond as well 

That money is not coming back.
It is well and truly ensconced in the British treasury. 

[erikalui]

I don't know who owes whom money but I am only aware of the fact that both India and Pakistan lost billions due to the British rule. First we need to get that money and the Kohinoor diamond as well  

That money is not coming back.
It is well and truly ensconced in the British treasury.  

That money can come back if the Ministers try but nobody seems interested in getting that back. The UK Prime Minister calmly refused to return the Kohinoor diamond when asked to do so and said it would be foolish to return it back.

[umaOuma]

There will be no outcome until india and pakistan are united.Pakistan wants kashmir and thats a tough job for them to get it as it is known as the heaven on the earth. India wont give Kashmir to Pakistan So its better to get united.

[sumantso]

I don't know who owes whom money but I am only aware of the fact that both India and Pakistan lost billions due to the British rule. First we need to get that money and the Kohinoor diamond as well  

That money is not coming back.
It is well and truly ensconced in the British treasury.  

That money can come back if the Ministers try but nobody seems interested in getting that back. The UK Prime Minister calmly refused to return the Kohinoor diamond when asked to do so and said it would be foolish to return it back.

If India puts pressure it can be done. Right now British are like the minnows in world politics, and exist as Uncle Sam's lapdog.

[bryant.coleman]

Return Pakistan occupied Kashmir, and take the money. 

Almost 45% of Kashmir is under the control of India, some 35% being controlled by Pakistan, and the rest 20% is being administered by China (Aksai Chin). Now let's look at the current situation:

Chinese Kashmir: Aksai Chin is very sparsely inhabited. Its inhabitants number in a few thousands, speaking local languages such as Changpa. These people are different from Ladakhi proper and have no intention of accepting Indian sovereignty. They might want to live in an independent Tibet, though.

Pakistani Kashmir: Almost all of the minorities (Hindus and Buddhists) were killed or driven away during the partition. The region is almost 100% Muslim, and almost all of them want to live under Pakistani rule.

Indian Kashmir: Can be divided in to three parts: Ladakh, Jammu and Central Kashmir.

Ladakh: Population is Buddhist, and want to live under Indian rule.
Central Kashmir: The Congress government encouraged militants to drive away the minority Hindus, and therefore the region is almost 100% Muslim now. Hardly any one supports India there. The population either want to join Pakistan, or to have their own country.

Jammu: The population is two-thirds Hindu and one-third Muslim. Almost all of them are pro-India.

Now from this, it is clear that the only ones who want a change in administration are those in the Indian Kashmir. Those in the Pakistani Kashmir will not join India even if they are forced at gun point.

[erikalui]

Return Pakistan occupied Kashmir, and take the money. 

Almost 45% of Kashmir is under the control of India, some 35% being controlled by Pakistan, and the rest 20% is being administered by China (Aksai Chin). Now let's look at the current situation:

Chinese Kashmir: Aksai Chin is very sparsely inhabited. Its inhabitants number in a few thousands, speaking local languages such as Changpa. These people are different from Ladakhi proper and have no intention of accepting Indian sovereignty. They might want to live in an independent Tibet, though.

Pakistani Kashmir: Almost all of the minorities (Hindus and Buddhists) were killed or driven away during the partition. The region is almost 100% Muslim, and almost all of them want to live under Pakistani rule.

Indian Kashmir: Can be divided in to three parts: Ladakh, Jammu and Central Kashmir.

Ladakh: Population is Buddhist, and want to live under Indian rule.
Central Kashmir: The Congress government encouraged militants to drive away the minority Hindus, and therefore the region is almost 100% Muslim now. Hardly any one supports India there. The population either want to join Pakistan, or to have their own country.

Jammu: The population is two-thirds Hindu and one-third Muslim. Almost all of them are pro-India.

Now from this, it is clear that the only ones who want a change in administration are those in the Indian Kashmir. Those in the Pakistani Kashmir will not join India even if they are forced at gun point.

Your talking on the basis of religion and Muslims should stay in Pak and Pak hindus should stay in India. Because of this, many people fear to even enter J & K as they don't know when they will be attacked. It's only a piece of land and so many people have lost their lives because of this fight.

Am not supporting either countries as both have been attacked by terrorists and so in that respect, both the countries aren't safe to live in.

[bryant.coleman]

Your talking on the basis of religion and Muslims should stay in Pak and Pak hindus should stay in India. Because of this, many people fear to even enter J & K as they don't know when they will be attacked. It's only a piece of land and so many people have lost their lives because of this fight.

It s not that simple. For example, Muslims in Indian (Central) Kashmir and those in Indian Jammu are not in good terms with each other. The former are mostly pro-Pakistan, while the latter are mostly pro-India. Here it is more to do with the ethnic divisions, rather than the religious ones. But religion does contribute in a significant way.

[erikalui]

It s not that simple. For example, Muslims in Indian (Central) Kashmir and those in Indian Jammu are not in good terms with each other. The former are mostly pro-Pakistan, while the latter are mostly pro-India. Here it is more to do with the ethnic divisions, rather than the religious ones. But religion does contribute in a significant way.

But that's still a generalization. I haven't seen their interviews or read about this happening where people are unhappy about living in India or Pakistan but have seen that mainly Pak is only interested in having Muslims from Kashmir and they start blaming India when a Muslim is blamed for anything. Similarly, it is in the case of India where Hindus in Pak are not leading a good life and this matter never ends. Within India itself, people go on the basis of religion where Maharashtrians should live in Maharashtra, Catholics in Goa, Biharis in Bihar and so on.

People who want to live in India and Pak are free to migrate and I don't think anyone is stopping them. But here the fight is about the land and not the people.

[sumantso]

Am not supporting either countries as both have been attacked by terrorists and so in that respect, both the countries aren't safe to live in.

You are a quality moron if you think an entire country of 1.2 billion population is unsafe because of a terrorist attack once in a blue moon.

Stop trying to increase your post count with stuff you are ignorant about. Take your tripe elsewhere.

[panju1]

Your talking on the basis of religion and Muslims should stay in Pak and Pak hindus should stay in India. Because of this, many people fear to even enter J & K as they don't know when they will be attacked. It's only a piece of land and so many people have lost their lives because of this fight.

It s not that simple. For example, Muslims in Indian (Central) Kashmir and those in Indian Jammu are not in good terms with each other. The former are mostly pro-Pakistan, while the latter are mostly pro-India. Here it is more to do with the ethnic divisions, rather than the religious ones. But religion does contribute in a significant way.

Since Jammu is a hindu-majority region, you will not be able to (freely) gauge the opinions of muslims in that region. Even in Kashmir, the ones with the pro-Pakistan voices are the loudest and act as if they are the sole representatives of the people of Kashmir.

[erikalui]

Am not supporting either countries as both have been attacked by terrorists and so in that respect, both the countries aren't safe to live in.

You are a quality moron if you think an entire country of 1.2 billion population is unsafe because of a terrorist attack once in a blue moon.

Stop trying to increase your post count with stuff you are ignorant about. Take your tripe elsewhere.

Yes, I am a moron to think that terrorists don't exist like you. FYI, my city has been under the attack as well many times   Once in a blue moon, yeah. My friend who lost her father in the train bomb blast never travels in the train till today as she finds the country very safe.


I was talking about Kashmir (you dint bother to read it). Kashmir is under the continuous attack and if you find it safe, it's your wish not mine. You may find even Iraq and Iran very safe.



I don't care about talking to people like you who just want to insult others so don't quote me.

[bryant.coleman]

Since Jammu is a hindu-majority region, you will not be able to (freely) gauge the opinions of muslims in that region. Even in Kashmir, the ones with the pro-Pakistan voices are the loudest and act as if they are the sole representatives of the people of Kashmir.

I have personally met Muslims from both the Indian Central Kashmir and Indian Jammu. Both speak different languages, and hardly mingle with each other. While the former rarely assimilate with the remaining Indians, I found the latter group more friendly and less radical in their political views. That said, every single Muslim from the Central Kashmir region (whom I met) were anti-India. I have also spoken to a few Hindus from Central Kashmir. This group is very unique. Most of them have migrated to other parts of India, and many of them are afraid to return to Kashmir. They have told me that it is impossible to cohabit with the Kashmiri Muslims.

[panju1]

I have also spoken to a few Hindus from Central Kashmir. This group is very unique. Most of them have migrated to other parts of India, and many of them are afraid to return to Kashmir. They have told me that it is impossible to cohabit with the Kashmiri Muslims.

Nice to hear an independent opinion.
It is unfortunate that the Kashmiri Pandits were made to leave Kashmir. The current central government would do what it takes to ensure their smooth return to Kashmir. Hopefully, the security situation improves to an extent that they feel comfortable living with Kashmiri Muslims.