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Pak Studies History IGCSEPDF 107
181 pagesrevision 46928
PDF 107
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However:
Topic
Key Facts/Figures
By then, Pakistan’s financial system had already suffered — it lacked
funds to pay civil servants, buy equipment, and run basic services.
The delay caused a serious financial crisis in the new country’s
early months.
It was agreed that the financial and administrative assets of British
India would be divided in the ratio of 17:5 between India and Pakistan,
based on their population size and territorial share.
Out of the 4 billion rupees in the Reserve Bank of India, Pakistan was
entitled to 750 million rupees.
Initially, 200 million rupees were paid to Pakistan.
Later, India withheld the remaining 550 million, claiming Pakistan
might use the money to buy weapons for conflict in Kashmir.
Mahatma Gandhi, believing the division should be fair, threatened a
hunger strike to pressure the Indian government.
His efforts succeeded, and India finally released the remaining 500 million
rupees in January 1948.
Pakistan’s new army consisted of around 150,000 men, but had only 2,500
trained Muslim officers, while it needed at least 4,000.
To fill this gap, Jinnah temporarily hired about 500 British officers to
train and manage the army.
The armed forces and military equipment were to be divided 36% to
Pakistan and 64% to India, again based on relative size and needs.
Members of the British Indian Army were allowed to choose whether to
joinIndia or Pakistan.
Muslim regiments went to Pakistan.
Non-Muslim regiments went to India.
Major Issues:
All 16 ordnance factories (used to produce weapons and ammunition)
were located in India, which refused to transfer any to Pakistan.
Instead, India agreed to pay 60 million rupees as compensation — but most
of the equipment handed over was old, damaged, or obsolete.
This left Pakistan’s armed forces poorly equipped and under-prepared,
especially during the Kashmir conflict of 1947–48.
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❖ Division of Military Assets