The State Bank of Pakistan has decided to call in debts owed by India and Bangladesh.

SBP wrote to all commercial banks and financial institutions requesting any details on receivables and assets owed to Pakistan from the two countries. This is to make a final assessment for the amount owed by India and Bangladesh.

Pakistan is reportedly owed Rs. 15.25 billion from the two countries according to SBP’s estimates.

Level of Debt Owed to Pakistan

India owes Rs. 6 billion while Bangladesh owes Rs. 9.25 billion to Pakistan. The letter by SBP asks the heads of the banks and financial institutions to give them details on everything owed by the governments or the central banks of the two countries.

Anything and everything owed is demanded, including land, building, furniture, papers, loans, advances, investment, office equipment, vehicles and government securities.

Any write-offs made on these debts are also demanded by the State Bank. According to the bank, India has owed Pakistan since 1947 and the total amount is higher than Rs. 6 billion.

Gold reserves, sterling securities, Indian securities, Rupee coins and Pakistan’s share in the Indian currency at the time of partition is included in the owed amount.

Historical Perspective

At the time of partition, Pakistan paid India for printing of currency notes. The notes were never given by India and the money paid for printing them wasn’t returned either. Not even a dime was paid by India since that time. India is liable to pay us Rs. 40 million for the currency printing alone.

Bangladesh owed Pakistan Rs. 9.21 billion by June 30th of this year. This amount includes transactions between government offices, loans, advances and papers.