Research Report on Off the Job Training of Newly Inducted Officers (of All Cadres) in Nbp
1.1 NBP - HISTORICAL BACKGROUND
The story of NBP is part of our struggle for economic independence. When we won political independence, our economy was controlled by Non-Pakistanis, mostly Hindus. East Pakistan was spared from massive migration but its economy was also, being dependent on Calcutta, badly hurt. Most bankers and business experts left Pakistan and the economic life was brought to a standstill, these mostly branches of Imperial Bank of India were only in partial operation with skeleton staff.
It was decided that Reserve Bank of India would act as the common monetary authority of both countries up to September, 1948. But this arrangement did not prove well. In August 1947, we were given a first installment of Rs.200 million (20 crore) as our share, leaving a balance of Rs.550 million (55 crore) but it was not paid when asked for.
In October 1947 there was fighting in Kashmir, when India refused to give us the amount of Rs.55 crore if we did not give up all interest in Kashmir, which we refused. In response, Reserve Bank of India refused to make even an advance for ways and means. Despite that India had to pay our 50 crore, (the remaining 5 crore still remains unpaid). There was a controversy on establishment of our central bank because we had no experience or expertise but it was resolved and SBP was created, 3 months ahead of schedule, on July 1, 1948, which was the last public appearance of the Quaid-e-Azam. SBP claimed its share of Assets of Reserve bank of India against the Indian currency retired from Pakistan, but this 50 crore India disputed and virtually refused to settle this dispute uptil now.
In 1949 (September) U.K. devalued its currency, India followed suit but we did not. India said we had contravened the agreement of keeping both currencies at par. We said we had not done that, India had done it arbitrarily without consulting us. On October 3, 1949, the two central banks were to announce the new par value of both
The story of NBP is part of our struggle for economic independence. When we won political independence, our economy was controlled by Non-Pakistanis, mostly Hindus. East Pakistan was spared from massive migration but its economy was also, being dependent on Calcutta, badly hurt. Most bankers and business experts left Pakistan and the economic life was brought to a standstill, these mostly branches of Imperial Bank of India were only in partial operation with skeleton staff.
It was decided that Reserve Bank of India would act as the common monetary authority of both countries up to September, 1948. But this arrangement did not prove well. In August 1947, we were given a first installment of Rs.200 million (20 crore) as our share, leaving a balance of Rs.550 million (55 crore) but it was not paid when asked for.
In October 1947 there was fighting in Kashmir, when India refused to give us the amount of Rs.55 crore if we did not give up all interest in Kashmir, which we refused. In response, Reserve Bank of India refused to make even an advance for ways and means. Despite that India had to pay our 50 crore, (the remaining 5 crore still remains unpaid). There was a controversy on establishment of our central bank because we had no experience or expertise but it was resolved and SBP was created, 3 months ahead of schedule, on July 1, 1948, which was the last public appearance of the Quaid-e-Azam. SBP claimed its share of Assets of Reserve bank of India against the Indian currency retired from Pakistan, but this 50 crore India disputed and virtually refused to settle this dispute uptil now.
In 1949 (September) U.K. devalued its currency, India followed suit but we did not. India said we had contravened the agreement of keeping both currencies at par. We said we had not done that, India had done it arbitrarily without consulting us. On October 3, 1949, the two central banks were to announce the new par value of both