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The Business of Pakistan’s Military: An Overview

by On The Dot
September 6, 2024
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The Business of Pakistan’s Military: An Overview

Since the partition of India and Pakistan in 1947, the two countries have engaged in four major wars, with Pakistan being defeated each time. As September marks the 59th anniversary of the 1965 war, it is an opportune moment to explore how Pakistan’s approach to conflict has evolved. Recognizing that direct military engagement with India has proven challenging, Pakistan has increasingly turned to proxy warfare, including cross-border terrorism, drug trafficking, and other illicit activities to undermine India.

A significant aspect of this strategy is the role of the Pakistani military not just as a defense force but as a powerful economic entity. According to strategic analysts like Pakistani professor Ishtiaq Ahmed, while most countries have armed forces, Pakistan’s military essentially operates as a state within a state. Reports suggest that the Pakistani military controls around 50 companies involved in various industries, including cement, oil, spices, electricity, housing, clothing, and footwear. These companies are managed through military foundations and trusts, highlighting the military’s dual role in both governance and business.

The military’s influence over Pakistan’s economy and political landscape is substantial. In 2016, Pakistan’s Defense Minister Khawaja Asif disclosed in the parliament that the military runs over 50 companies through entities such as the Fauji Foundation, Shaheen Foundation, Bahria Foundation, Army Welfare Trust, and Defence Housing Authorities. This network controls major businesses and properties across Pakistan, from Lahore to Peshawar, underscoring the military’s dominance in both economic and political spheres.

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Some notable companies operated by the Pakistani military include:

  • Army Welfare Sugar Mills
  • Askari Projects (producing shoes and wool)
  • Army Welfare Mess Restaurants
  • Askari General Insurance Company Limited
  • Askari Aviation Services
  • Fauji Security Services
  • Fauji Fertilizer
  • Fauji Cement Company
  • Fauji Oil Terminal
  • Fauji Kabirwala Power Company
  • Noon Pakistan Limited
  • Fauji Meat Limited

The military’s extensive business empire not only bolsters its economic strength but also enhances its influence over Pakistan’s political institutions. This situation contributes to the military’s substantial power and control over the country, far surpassing other political entities in Pakistan.

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