E-Paper
HT This Day: September 15, 1950 -- Towards economic breakdown in Pakistan
“These defence forces, which are 1 one of the greatest achievements in the Dominion’s short history, also symbolize her greatest tragedy.”
In an article on problems of Pakistan, the Karachi correspondent of The Times writes in that paper:
“The Pakistani Army is built mainly of the same fine human material, the Punjabi Muslims and the men of the frontier areas, that provided a high percentage of the best soldiers of the old Indian Army, and it is now a fighting machine in which its senior British officers have much pride. Except for its tanks, which are obsolescent, it is reasonably well equipped for defensive operations. During the next few months it will face the strain of having most of its remaining British of1kerd replaced by comparatively inexperienced Pakistanis, and there are some who fear that, as the momentum given it by its training under British officers dies away, the Army’s standards and efficiency will drop. To be set against this, however, is the fillip to morale of the feeling of being a national army. The Royal Pakistan Air Force is overcoming the extreme deficiencies in aircraft, crews. and technicians with which it began life, and to several squadrons of Tempest and Fury fighter-bombers it has recently begun to add jet aircraft. The Royal Pakistan Navy has two ex-British ‘ “ 0 “ class destroyers and several escort vessels, and is slowly acquiring more ships.
GREATEST TRAGEDY
“These defence forces, which are 1 one of the greatest achievements in the Dominion’s short history, also symbolize her greatest tragedy. When so much constructive work needs to be done, all but the most imperative tasks have had to be shelved to build up military forces, because of the mutual suspicion between Pakistan and her Indian neighbour. The total Pakistani expenditure directly or indirectly attributable to defence is I not easy to assess. One estimate, however, is that taking into account capital as well as current expenditure the total outlay this year will exceed the whole of the Central Government’s current revenue (some ₹750m). This fantastic situation means that, in effect, all activities other than defence have to be financed by increasing the public debt and by eating into the financial reserves inherited by Pakistan from undivided India. The internal debt incurred since the Dominion’s foundation is now about ₹900m.
PRESSURE ON BANKS
“These figures of loans which have had to be raised, and the recourse to reserves, make the proud Pakistani claim of a balanced Budget in each of her three years of I existence true only in a technical sense. Furthermore, there are indications that loans are proving more and more difficult to raise, even though pressure is put on banks and other business houses ‘o subscribe. This year there may well be a sizable Budget deficit, even on current account.
DOLLAR DEFICITS
“The country’s foreign exchange ! position, too-reasonably satisfactory up to the end of 1949-is seriously threatened this year, unless an article on problems of Pakis- tan, the Karachi correspondent of The Times writes in that paper:- “ The Pakistani Army is built mainly of the same fine human material, the Punjabi Muslims and the men of the frontier areas, that provided a high percentage of the best soldiers of the old Indian Army, and it is now a fighting machine in which its senior British officers have much pride. Except for its tanks, which are obsolescent, it is reasonably well equipped for defensive operations. During the next few months it will face the strain of having most of its remaining British officers replaced by comparatively inexperienced Pakistanis, and there are some who fear that, as the momentum given it by its training under British officers dies away, the Army’s standards and efficiency will drop. To be set against this, however, is the fillip to morale of the feeling of being a national army. The Royal Pakistan Air Force is overcoming the extreme deficiencies in aircraft, crews. and technicians with which it began life, and to several squadrons of Tempest and Fury fighter-bombers it has recently begun to add jet aircraft. The Royal Pakistan Navy has two ex-British ‘ “ 0 “ class destroyers and several escort vessels, and is slowly acquiring more ships.
GRAVEST DANGER
“The Dominion’s gravest immediate danger is that an inherently sound economy, the high qualities and achievements of her people, and Prime Minister’s claim that Pakistan is the most stable country of the East can all be set at naught by the continuing huge rate of defence expenditure and the trade deadlock with India. The Government and people are seemingly unanimous that defence expenditure must continue in present circumstances. Many Pakistanis genuinely seem to believe that important elements in India are still unreconciled to Pakistan’s separate existence, and so long as they remain apprehensive on this score. and particularly while their worst fears are confirmed by India’s refusal to make concessions over Kashmir, which to Pakistan is of the highest strategic, economic, and psychological importance-no voice is likely to be raised against the sacrifices which this expenditure involves
“The danger of being broken economically by the surmised threat from her neighbour and blood relation is the new Dominion’s greatest tragedy a tragedy made no less acute because of Pakistan’s capacity to do almost equally serious economic damage to India.”
