BD to demand $4.52bn pre-1971 assets from Pakistan today: report

DHAKA: Bangladesh is preparing to formally raise its demand for $4.52 billion in financial claims from Pakistan, comprising its fair share of undivided Pakistan’s pre-1971 assets, including aid money, provident funds, and savings instruments, reports a Bangladeshi news platform.

The issue will be formally raised during the foreign secretary-level talks slated for April 17 (today) in Dhaka, the first such meeting between the two countries in 15 years. According to foreign ministry officials, one of the most significant claims involves $200 million in foreign aid sent to the then-East Pakistan after the devastating 1970 Bhola cyclone. The amount, deposited with the Dhaka branch of the State Bank of Pakistan, was shifted during the Liberation War to the bank’s Lahore branch, the news outlet quoted the officials as saying.

Similarly, many Bangladeshi government employees who had been stationed in West Pakistan returned home after independence, only to find that the provident fund balances and savings instruments they had accrued were never refunded by Pakistan. These, too, are part of the broader $4.52 billion claim.

The foreign ministry has compiled detailed evidence from the Bangladesh Bank to substantiate its case, identifying the various components of the outstanding amount.

According to foreign ministry records, Bangladesh was entitled to 56pc of those assets. If contributions to foreign exchange earnings are considered, the share stands at 54pc, and by any parity principle, Bangladesh should be entitled to at least 50pc.

A post-war assessment prepared by the Planning Commission on 16 December 1971 estimated that West Pakistan had withheld Tk90 lakh in provident fund deposits belonging to East Pakistani civil servants. Similarly, Tk1.57 crore held in Rupali Bank’s Karachi branch during the war was never returned. Bangladesh’s attempts to repatriate the funds by selling the shares were also unsuccessful.