Fifty-three years after independence, many stories of the Liberation War remain untold. Part 9 of this 12-part series explores how the Mujibnagar Government financed the war -- tracing the daring recovery of treasury funds, the mobilisation of domestic and foreign aid, and the financial backbone that sustained Bangladesh's fight for independence.
On April 17, 1971, in the mango grove of Baidyanathtala at Bhoberpara, an isolated border area in Meherpur, the acting president and cabinet members of the Mujibnagar Government were sworn in, formally establishing the provisional Government of Bangladesh during the Liberation War.
Although the government took shape in mid-April, the need for funds emerged from the earliest days of the war. Freedom fighters initially gathered money from treasuries and banks across the country.
Among the ministries formed at Mujibnagar, finance held a crucial portfolio, responsible for raising funds, collecting revenue, mobilising foreign aid and managing wartime expenditures.
Accounts of the Mujibnagar Government's financial operations are documented in several sources, including "Bangladesher Shadhinota Juddho Dolil Potro Volume III", "Bangladesh Sarkar 1971" by H T Imam, "Mujibnagar Government 1971" by Mohammad Fayequzzaman, "Spring: 1971" by Faruk Aziz Khan, and "Muktijuddher Chikitsa Itihas" by Shahaduzzaman and Khairul Islam.
Financial aspects are also referenced in Akbar Ali Khan's memoir "Purono Shei Diner Kotha" and "Muktijuddher Purbapor Kothopokothon" by A K Khandker, Maidul Hasan and S R Mirza.
THE SEARCH FOR FUNDS
According to these sources, senior Awami League leaders led by Tajuddin Ahmad began forming a provisional government in India in late March. With most leaders fleeing with little, raising funds proved difficult.
After the government was formed on April 10, the urgency intensified. In his April 14 diary entry, Tajuddin noted that at least Tk 1 crore would be required initially, with hopes of securing loans from India and other friendly nations.
Between March and May, freedom fighters carried out planned operations to collect funds from treasuries and banks across districts and subdivisions, most of which were sent to the Mujibnagar fund.
Details of these operations appear in "Purono Shei Diner Kotha", the autobiography of former adviser Akbar Ali Khan, who served as the sub-divisional officer of Habiganj in early 1971.
According to his account, Sub-Divisional Police Officer Mahbub Uddin Ahmed of Jhenaidah and Sub-Divisional Officer Tawfiq-e-Elahi Chowdhury of Meherpur collected Tk 4 crore 40 lakh from their respective treasuries. Nurul Kader Khan, deputy commissioner of Pabna, deposited Tk 2 crore, while Captain Ainuddin deposited Tk 1 crore 14 lakh obtained from banks in Brahmanbaria. Akbar himself also contributed a large sum.
On April 18, freedom fighters led by Kurigram Provincial Council member Abul Hossain recovered Tk 1 crore 40 lakh and 29 boxes of gold from the local treasury, which were sent to India and later deposited into the Mujibnagar fund.
Akbar estimated that roughly Tk 20–25 crore was transferred to the Mujibnagar treasury through the BSF.
According to "Bangladesh Sarkar 1971", Cabinet Secretary Colonel M A G Osmani presented a plan at the April 16 cabinet meeting on swiftly collecting treasury funds.
Initially, currency was exchanged in India. Later, most funds were sent through Marwari traders to Afghanistan, converted to Indian currency and returned. At least three officials oversaw each exchange.
The book also notes that the Pakistan government announced the demonetisation of Tk 100 and 500 notes on June 8. Anticipating the move, the Mujibnagar authorities managed to exchange most notes beforehand.
According to "Bangladesher Shadhinota Juddho Dolil Potro Volume III", the government in May 1971 issued a seven-point directive urging people to deposit rents, taxes and duties into government treasuries. That same month, an Industrial and Commerce Board was established to facilitate the export of jute, tea and hides.
In India, more than 15 organisations raised funds and deposited them into the freedom fighters' fund. The Swadhin Bangla Football Team played 16 exhibition matches and donated over Tk 5 lakh. Indian artists, writers, intellectuals, doctors and industrialists also contributed, Fayequzzaman wrote in "Mujibnagar Government 1971".
FOREIGN AID
Foreign support, particularly from expatriate Bangalees, foreign citizens and international charities, became a major funding source.
According to "Spring: 1971", around 30 organisations were formed in New York and Chicago in the United States to raise funds.
"Muktijuddher Chikitsa Itihas" notes that in the United Kingdom, over 450 Bangalee doctors and medical students formed the Bangladesh Medical Association UK, each contributing at least £10 per month.
"Bangladesh Sarkar 1971" states that between April and June, Action Bangladesh sent Tk 58 lakh 40 thousand to the provisional government. Proceeds from global concerts, including the Concert for Bangladesh held in New York on August 1, also flowed into the fund. UNICEF transferred USD 243,418 from ticket sales.
During the war, Professor Rehman Sobhan served as a special envoy for the Mujibnagar Government's financial affairs, working to mobilise international support.
Speaking to The Daily Star yesterday, he said, "Raising funds for the Mujibnagar Government was always a challenge. Apart from India, no foreign country came forward to provide us with financial assistance. Expatriate Bangalees were our greatest source of hope; they contributed a significant portion to the Mujibnagar Government's fund.
"We also received some funds from charitable organisations operating in different countries, although there were major obstacles even in those cases. Overall, it was a very difficult situation, but through collective efforts we were able to cope with it."
EXPENDITURE AND BUDGET
According to "Bangladesher Shadhinota Juddho Dolil Potro Volume III", the finance department on June 18 issued a salary directive for regional administrators and staff. On July 19, Finance Minister M Mansur Ali announced a three-month budget for July-September, proposing an expenditure of Tk 2 crore 15 lakh 64 thousand against projected annual revenue of Tk 7,74,18,998.
The budget note stated, "We now need a budget to meet the necessary and unavoidable expenses required for the war of independence. This budget is prepared for the three months of July to September."
In this first wartime budget, Tk 1.93 crore was allocated for defence, with additional allocations for health, youth camps, administration and information.
According to "Mujibnagar Government 1971", the monthly salary for acting president Syed Nazrul Islam was fixed at Tk 2,000, for Prime Minister Tajuddin Ahmad at Tk 1,500, and for other cabinet members at Tk 1,200.
"Muktijuddher Purbapor Kothopokothon" says that P N Haksar, principal secretary to the Indian prime minister, informed Bangabandhu Sheikh Mujibur Rahman in 1972 that Tk 17 crore of the funds sent to the Mujibnagar Government during the war remained in Indian banks. The money was later handed over to the Government of Bangladesh the same year.