KARACHI: The question of exchange control between Pakistan and India will loom large in the Inter-Dominion Conference on monetary exchange and other financial issues which began in Karachi yesterday [May 22]… . Yesterday’s five-hour discussions … mostly related to a review of the balance of payments agreement between the two countries which expires on June 30, 1949.

Unofficial opinion in Pakistan appears to be overwhelmingly in favour of an exchange control between the two countries. This view has some of its staunch supporters even in official circles. They argue that after imposition of full tariff between Pakistan and India the only logical course is to impose exchange control. Conditions in India and the position of Pakistan’s trade with that country also demand immediate imposition of control to enable Pakistan to reap full benefits of her strong financial and trade position. The votaries of this view pointed out the rapidly deteriorating conditions of India’s balance of payment vis-à-vis hard and soft currency during the last one year and the fall … in the exchange value of the Indian rupee.

Published in Dawn, May 24th, 2024