The Nizam of Hyderabad remained a staunch supporter of Pakistan. Upon the creation of Pakistan on August 14, 1947, the Nizam was isolated since the State of Hyderabad was surrounded by the newly independent Republic of India. Under these conditions, the Nizam could not declare accession to Pakistan out of fear that India would invade the State of Hyderabad which it did a year later.
During this period, the new state of Pakistan had tremendous financial problems as India had not released Pakistan's share to it in hopes that Pakistan would collapse economically.
Recalling the incidents of that period, Mr. Farooq Ahmed Khan, Retired Deputy Inspector General of Police recalls some of the most important incidents of this episode stating:
"Not many people know that at the time when Pakistan came into existence in 1947; and before the fall of Hyderabad, due to unprovoked Indian military aggression in 1948. The Government of Pakistan had to start a new country from scratch. And India had purposely not given the share, which Pakistan was supposed to get under the Partition Agreement; because in the beginning Pakistan did not even have the money to pay the salaries of the Government officers and employees. Although the morale of the people was high, and the people were ready to make sacrifices for the new country, which they had aspired for, and had now finally become a reality. At that critical period, it was Hyderabad State, which came forward to help Pakistan, and rescue the country from bankruptcy or collapse.
"For this purpose, a novel scheme was implemented. An adventurous British commercial pilot was contacted and engaged in his private capacity to secretly fly loads of gold from Hyderabad to Pakistan, eluding the Indian planes, which could have stopped the flight or shut down the plane.
"This rescue project for Pakistan was the idea of Qasim Rizvi, the leader, who was then in power in Hyderabad. Nizam had also given his consent for this noble action, undertaken at great risk.
"Fortunately this scheme worked, which helped to keep going the newly formed Pakistan. Needless to say, that this invaluable and timely help from Hyderabad to Pakistan, at such a critical juncture, cannot be forgotten."[1]
The most famous case still pending in the UK in this regard relates to the 1,007,940 pounds sterling that the Nizam had transferred through the National Westminster Bank in 1948 favouring the Pakistan High Commissioner in London Mr. H.I. Rahimtoola. This money is now worth over 30 million pounds sterlin. The Govt of India laid claim to the money against the claim of the Govt of Pakistan. The case is still sub judice.
During this period, the new state of Pakistan had tremendous financial problems as India had not released Pakistan's share to it in hopes that Pakistan would collapse economically.
Recalling the incidents of that period, Mr. Farooq Ahmed Khan, Retired Deputy Inspector General of Police recalls some of the most important incidents of this episode stating:
"Not many people know that at the time when Pakistan came into existence in 1947; and before the fall of Hyderabad, due to unprovoked Indian military aggression in 1948. The Government of Pakistan had to start a new country from scratch. And India had purposely not given the share, which Pakistan was supposed to get under the Partition Agreement; because in the beginning Pakistan did not even have the money to pay the salaries of the Government officers and employees. Although the morale of the people was high, and the people were ready to make sacrifices for the new country, which they had aspired for, and had now finally become a reality. At that critical period, it was Hyderabad State, which came forward to help Pakistan, and rescue the country from bankruptcy or collapse.
"For this purpose, a novel scheme was implemented. An adventurous British commercial pilot was contacted and engaged in his private capacity to secretly fly loads of gold from Hyderabad to Pakistan, eluding the Indian planes, which could have stopped the flight or shut down the plane.
"This rescue project for Pakistan was the idea of Qasim Rizvi, the leader, who was then in power in Hyderabad. Nizam had also given his consent for this noble action, undertaken at great risk.
"Fortunately this scheme worked, which helped to keep going the newly formed Pakistan. Needless to say, that this invaluable and timely help from Hyderabad to Pakistan, at such a critical juncture, cannot be forgotten."[1]
The most famous case still pending in the UK in this regard relates to the 1,007,940 pounds sterling that the Nizam had transferred through the National Westminster Bank in 1948 favouring the Pakistan High Commissioner in London Mr. H.I. Rahimtoola. This money is now worth over 30 million pounds sterlin. The Govt of India laid claim to the money against the claim of the Govt of Pakistan. The case is still sub judice.