KARACHI: Pakistan has been allowed to draw 17.5 million pounds (about Rs 16 crores) from her Sterling Balances under the new Pakistan-UK Agreement signed in London on July 27, it was officially announced yesterday [Aug 4]. The Agreement is valid until June 1951. The Government of the UK have also recognised Pakistan’s right to demand a larger release if the trade and payments deadlock with Bharat is not resolved before the end of September 1950.

The 17.5 millions include an annual release of 15 million pounds and a special release of 2.5 million pounds for exceptional requirements due to the trade deadlock with Bharat up to September 1950. The upper limit of Pakistan’s dollar expenditure during the year remains fixed at 65 million dollars, the same as mutually agreed upon last year.

Karachi circles pointed out that, considering Britain’s improved financial position, this year’s agreement did not provide for any very liberal sterling releases to Pakistan. The normal annual release of 15 million pounds as against last year’s 12 million pounds merely makes allowances for the devaluation of the pound sterling.

Published in Dawn, August 5th, 2025