New Delhi: The Independence of India in 1947 was a boon that gave us freedom from British colonial rule, but it also brought with it a curse, that of the Partition. It resulted in one of the largest human displacements in history, with lakhs and lakhs of people leaving their ancestral homes for a place which was new to them, uncertain about their future. The stroke over the map of the erstwhile undivided Indian subcontinent uprooted people and their culture, and traditions and created a ripple whose effects could be felt by subsequent generations. The Partition also led to the division of assets of British India into two new countries, and the focus was especially on the two new nations that needed the economic boost to tackle the impending crisis.
The Partition: Does Pakistan owe money to India?
Reportedly, Pakistan got 17.5 per cent of the assets of British India during the Partition, and it was agreed that both countries would have the same central bank for over a year. However, seldom has anything between India and Pakistan happened smoothly since 1947. While Pakistan’s new central bank got Rs 75 crore including a working balance of Rs 20 crore in advance following its creation, it got the remaining Rs 55 crore after Mahatma Gandhi undertook a fast.
But to date, both countries claim that they owe each other money. As per reports, the Economic Survey of India 2022-2023 stated that Pakistan owes us Rs 300 crore as pre-partition debt. It was pegged as part of India’s net liabilities of Rs 1,09,84,736 crore. Infact, according to an Economic Times article, India’s Economic Survey every year diligently adds a row in the ‘Outstanding Liabilities of the Central Government’ section titled ‘Amount due from Pakistan on account of share of pre-partition debt’.
It must be noted that no government has tried to write it off or consider it as a non-performing asset and also, no interest has been added to the amount or it has not been adjusted with changing economy in any way. In 2022, a PIL was filed in the Delhi High Court seeking recovery of the ‘Rs 1 trillion’ debt owed by Pakistan to India since Partition. However, the court refused to entertain the PIL and said that it was the discretion of the central government.
The counter-claim of Pakistan
Since every coin has an opposite side, there is a counterclaim from Pakistan as well. In 2014, several media reports from Pakistan including an article in The Express Tribune stated that according to the State Bank of Pakistan, which is the country’s central bank, India owes them Rs 560 crore.
It mainly comprised of assets held that RBI, which functioned as Pakistan’s central bank as well after Independence, is allegedly yet to transfer to our neighbouring country. Interestingly, the original amount claimed by Pakistan was Rs 49.8 crore but unlike India, they increased the amount after adjusting inflation and revisions of exchange rate. Interestingly, from the first-ever Statement of Affairs of the SBP in July 1948 to its statement in June 2014, the central bank had listed the unsettled claims every year.
Reportedly, Pakistan got 17.5 per cent of the assets of British India during the Partition. But to date, both countries claim that they owe each other money. How? Read on to find more. knowledge Knowledge News, Photos and Videos on General Knowledge
