If East Bengal is amongst the 8 poorest countries in the world it has to be partially attributed to the very fact that it is a part of Pakistan. What East Pakistan did not have, however, and has never possessed until today, was political power - and it was the exercise of power by the leadership in the west that started the rot. In particular, East Pakistan's fpreign trade earning are diverted to finance imports for West Pakistan.
Economic policy favours West Pakistan at the expense of East Pakistan.
Specifically, tarriffs, 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. 34 Reports of the Advisory Panels for the Fourth Five Year Plan 1970-75, Vol. A sizable net transfer of resources had taken place from East to West Pakistan. Using the then exchange rate of Rs 11.90 to the dollar, this worked out to 2.6 thousand million dollars in 1971 terms. In 1948 there were 11 textile mills in the East and only 9 in the West.