India, Bangladesh owe Pakistan Rs15.25 billion

SBP instructs banks to provide details of dues against both countries

KARACHI: The federal government has decided to demand its outstanding amount from India and Bangladesh.

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 Rs15.25 billion. The value of assets occupied by India was Rs6 billion at the end of June 2016 while Bangladesh had to pay more than Rs9.21 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, building, furniture and fixtures, office equipment and vehicles, government securities, papers, loans, advances and investment.



They were also asked to provide details of any write-offs they made in respect of assets or dues.

According to statistics of the SBP, India has been Pakistan’s debtor since the time of partition and the amount due exceeds Rs6 billion. These include gold reserves, sterling securities, Indian securities, rupee coins and Pakistan’s share in the Indian currency at the time of partition.

Pakistan had paid India for printing of currency notes but they were never provided, additionally India also did not return the money paid for the printing even after seven decades. The amount due in this respect is Rs40 million.



Similarly, Bangladesh as East Pakistan owed Pakistan Rs9.21 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 of the dues.

Published in The Express Tribune, November 15^th, 2016.

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