niaz
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I will have to post this link once again then i guess..
Virtual Bangladesh : History : Economic Exploitation
It says that:
East Pakistan blame three instruments of the Central Government for their plight:-
Pakistan's scant investible resources, plus foreign aid, are directed unduly to the development of West Pakistan - to the comparative neglect of East Pakistan
In particular, East Pakistan's foreign trade earning are diverted to finance imports for West Pakistan.
Economic policy favors West Pakistan at the expense of East Pakistan. Specifically, tariffs, import controls, and industrial licensing compel East Pakistan to purchase commodities from West Pakistan which, but for the controls could be obtained more cheaply in world markets.
From 1948-60 East Pakistan's export earnings had been 70%, but its share of import earnings was only 25%.
A sizable net transfer of resources had taken place from East to West Pakistan. The report states that, if allowance is made for the undervaluation of foreign exchange in terms of Pakistan's domestic currency, the total transfer from East to West Pakistan over the period 1948/49-1968/69 was Rs 31,000,000,000 [1971 terms]. Using the then exchange rate of Rs 11.90 to the dollar, this worked out to 2.6 thousand million dollars in 1971 terms.
Now coming to mathematics...
If the export earnings of East Pakistan was to the tune of 70% of the total;
Budget allocation(starting at 35% and going to 45%) even to the tune of 45% does not make much a good sales pitch...
If they were earning 70%; budget allocation ideally should have been ~ 70%...
But that is not actually possible nor it is a good thing to do...
It will be like asking 6% of total budgetary allocation for Mumbai itself as it contributes ~6% to India's' GDP...
And cities like mine will never get a new road ever..!!
Still I dont think E. Pakistan ever got its fair share...
Jahan aag hai wahin se dhua nikalta hai...
With the hindsight, one can call it as an error of judgement on the part of the Quaid when he declared that national language of Pakistan would be Urdu. This was the first reason of discontent which started as early as 1948.
Korean War started when fighting erupted along the 38th parallel in 1951. Many nations started hoarding commodities including jute with Pakistan as major exporter of Jute reaping rich rewards.
In most of the post-independence period up to 1965, Pakistan exports consisted mainly of jute, cotton and agricultural produce with jute contributing almost 60% of the foreign exchange earnings. Demand of jute declined and by 1970, the share of Jute exports was about 50% of total Pakistan FE earnings.
According to a study conducted by J Russel Dares & AzizAli F Mohammed published in 1966 under the title "Trade, Finance nad Deveolpment in Pakistan":
Total exports of united Pakistan in 1949-50 were 1, 194- million rupees. With the East Pak contributing Rs 629-milion and the West Pak Rs 568-million. Imports were Rs 1, 297- million with RS 912- million going to West Pakistan and only Rs 385-million for the East Pakistan. Last data in this study is for 1963-1964; total exports were Rs2,043-million, East Pakistan share RS 1, 208- million and the Western wing managing only Rs 835-milion.Total imports in the same period were Rs 4,430-milion; East Pakistan’s share 1,449-million and the West consuming Rs 2,981-million.
Thus it is clear that most of the investment in the new industries was in the West Pakistan. It is estimated that between 1960 – 1965 period, West Pak GDP per capita rate at 4.4% per annum whereas it was only 2.6% in the Eastern Wing.
This fact was exploited to full by the Awami League where following the death of Hussein Shaheed Suharwardy; Sheikh Mujib had emerged as a charismatic leader.
Sh. Mujibur Rehman admitted in an interview that he was working for the secession of East Pakistan since the 1950’s. Agartala plot was his brainchild to start an armed revolution against the dominance of West Pakistan. Sheikh Mujib and Mohamed Ali Reza went to Agartala to seek help from Indian Government in this venture. This plot was uncovered by ISI and the accused were arrested pending trial for treason.
ZA Bhutto, who by that time had become an arch enemy of his erstwhile benefactor Ayub Khan, started an agitation in West Pakistan giving the impression that the trial was an attempt to deny East Pakistan genuine autonomy and got Sheikh Mujib released from Jail.
In 2010 surviving conspirator and Deputy Speaker of the Parliament Shaukat Ali confessed to the parliament at a point of order that the charges read out to them were accurate, stating that they formed a Shangram Parishad under Sheikh Mujib for the secession of East Pakistan. Parliamentarian Tufail Ahmed added that had the case not been filed, the plot would have culminated in the secession of East Pakistan without bloodshed, and credited the Deputy Speaker for planning the liberation of the nation.
India had been fuming at the defeat in 1965 war with Indian war machine was ready & hell-bent on teaching Pakistan a lesson. The rest is a well-known history.