LONDON: Pakistan has become a full member of the sterling area under the new Anglo-Pakistan Financial Agreement, details of which were officially released in London today [Aug 16], cables [agency’s] Financial correspondent.

For the twelve months ending June 30, 1950, Pakistan will be able to draw from her sterling balances nearly two and a half times the amount she has been entitled to over the past year: twelve million sterling (48 million dollars) against five million sterling (20 million dollars). As in last year’s agreement, Pakistan will be able to draw an additional sum of five million sterling… .

Pakistan still has to effect a great deal of development of her agriculture, as well as of her industry, before she can get over the pangs of partition, an authoritative source said. The Pakistan delegation had apparently indicated some fear that Pakistan food crops might not come up to normal expectations during the coming year. It was agreed that the British Government would consider any request Pakistan might make for additional releases from her sterling expenses to meet “abnormal expenditure … on the import of foodgrains”.

Published in Dawn, August 17th, 2024