DACCA, Pakistan, March 12 — East Pakistan's self‐rule was broadened today in an effort to cope with mounting economic problems stemming from West Pakistan's control of much of the economic structure in the East.
The Awami League East Pakistan's dominant political party, which has been demanding autonomy for this eastern wing of the country issued new instructions to banks and other agencies important for the economy. Most banks here are branches of banks in West Pakistan.
Meanwhile East Pakistanis waited impatiently for the visit of President Agha Mohammad Yahya Khan, who announced earlier this week in his capital in West Pakistan that he would make a trip to the East shortly.
The trip it is assumed, will be made to attempt to find solution to differences between the two wings of the country that have led to virtual breakway of the East. The wings are divided by 1,000 miles of Indian territory.
Officials Won't Work
The crisis began last week when the President postponed the scheduled meeting of the National Assembly, which the Awami League would have dominated by a majority and which was supposed to draft constitution that would return Pakistan to civilian rule.
This week on orders by the league, Government officials and judges have refused to go to work under the martial‐law authorities assigned by the central Government in West Pakistan to administer the East.
The Awami League has demanded an end to martial law and a take‐over of power by elected representatives of the people before the league will agree to consider attending a meeting of the National Assembly and participate in framing a new charter. President Yahya has rescheduled the Assembly meeting, for March 25.
A spokesman for Sheik Mujibur Rahman leader of the league, said he was, prepared to meet with the President.
Today's instructions from the league lengthened the working hours of banks loosened bank payments for production and trade purposes and authorized free transfers of funds within East Pakistan.
The prohibition on remittances to the West remained in effect however and the new instructions required that withdrawals from banks for payment of wages and salaries had to be certified by the workers organization concerned.
Orders were also given that agricultural development and production activities must continue together with the operation of the agencies responsible for them.
Other instructions directed that rehabilitation work in areas affected by last November's cyclone should be carried out. Relief work in the areas has been continuing, but the strike here of personnel in head offices of the two main agencies responsible for rehabilitation and reconstruction has caused virtual stoppage of construction on embankments, housing and other rebuilding projects.
The prospect now is that some rehabilitation activity will be resumed but that major progress on housing cyclone shelters and similar projects will depend on whether decisions can be made here.
Banks Are in Difficulties
Today's new instructions indicate some of the economic problems that East Pakistan faces as a result of its steps toward self‐rule this week.
The economic domination by West Pakistan, which East Pakistan has long protested, is now becoming sharply evident as a result of these problems.
Since most private banks here are branches of banks in the West, if they do not receive authorization from the home office they have only limited drawing rights from the state bank here. Authorization is now impossible because of a break in telecommunications.
As a result, private banks are running out of money. Their clients are withdrawing funds and depositing no new funds.
Banks are refusing to clear checks on other banks, and rumors spread today that three of the largest private banks might close their doors Monday. The state bank here, a branch of the central bank in the West, is said to have plenty of currency on hand but legally operates under controls from the head office in the West.
Its officials are reluctant to depart from normal procedures and regulations and to relieve the money situation here by operating as a Virtually Independent state institution.