In Pakistan, power doesn’t retire—it reinvests. From fertilizers to real estate, and from banking to energy, the tentacles of military-linked conglomerates extend deep into the country’s economic fabric. Beneath the rhetoric of “national service” lies a system where command translates into capital, and loyalty into lucrative contracts.
From Uniform to Boardroom
The military’s corporate presence began soon after independence, but over decades it evolved into what analysts now describe as a parallel economy. Institutions like the Fauji Foundation, Army Welfare Trust (AWT), Shaheen Foundation, and Defence Housing Authorities (DHAs) dominate key sectors.
The Fauji Group alone controls multi-billion-rupee assets through companies such as Fauji Fertilizer Company (FFC), Fauji Cement (FCCL), Askari Bank, and Fauji Foods. These enterprises employ thousands, contribute significantly to GDP, and operate under the banner of welfare—but their governance remains opaque. Board seats often go to serving or retired generals, preserving a cycle of elite influence.
State Contracts and Strategic Gatekeeping
Military-run corporations don’t just compete—they often set the rules. Their connection to the state allows privileged access to government tenders and privatisation opportunities.
For instance, FFC’s confirmed interest in acquiring Pakistan International Airlines (PIA) during the government’s latest privatisation drive highlights how defence-linked enterprises stand to absorb state assets. Contracts for construction, energy, and logistics frequently pass through channels where oversight is minimal and auditing is symbolic.
These entities are not fringe actors; they shape national economic priorities. The military’s dominance in sectors like fertilizer, cement, and real estate gives it direct leverage over both policymakers and markets.
The Real-Estate Frontier: Land as Currency
Few business ventures reveal the power dynamics as clearly as the Defence Housing Authorities. Established ostensibly to provide housing for servicemen, the DHAs have become vast real-estate empires across Pakistan’s major cities—Karachi, Lahore, Islamabad, Peshawar, Multan, and beyond.
Court records and investigative reporting show repeated controversies over land acquisition, environmental violations, and regulatory capture. Supreme Court judgments, such as those in the Bahria Town Karachi case, exposed how land worth billions was transferred under irregular circumstances—often later “regularised” through fines.
DHA projects, marketed as “secure and elite”, symbolize both aspiration and exclusion. They create wealth for insiders while driving housing inflation for everyone else.
Offshore Shadows and Transparency Gaps
The Pandora Papers revealed that over 700 Pakistanis, including relatives of former military officials, held offshore accounts and shell companies. These leaks shed light on a global pattern: the transnationalisation of elite wealth.
Crucially, no verified public record currently links Army Chief General Asim Munir personally to offshore holdings. The focus, rather, is institutional. Under his command, the army’s economic footprint has become more visible in state transactions and policy alignments—but not through individually documented assets.
This distinction matters. The problem is not personal enrichment alone, but systemic militarisation of economic governance, where accountability evaporates under the camouflage of “national security”.
Patronage, Power, and Poverty
Pakistan’s economic crisis—record inflation, a depreciating rupee, and IMF dependency—coexists with military businesses that continue to thrive. Critics argue that this duality embodies elite capture: state resources channelled into self-sustaining networks of privilege while public welfare stagnates.
The result is a distorted economy where:
- Public subsidies reinforce private profits.
- Land development benefits a narrow stratum.
- Civilian institutions remain subordinate in both policy and profit.
In such a structure, even the rhetoric of reform becomes performative. “Anti-corruption” campaigns spare the most powerful economic players, and privatisation often becomes redistribution within the same elite circle.
The Road Ahead
Any discussion on Pakistan’s democracy, governance, or justice is incomplete without addressing this nexus of power and profit. Transparency in procurement, civilian oversight of welfare foundations, and public audits of DHA and Fauji-linked projects are not radical demands—they are democratic necessities.
The myth that the military’s economic ventures are purely philanthropic no longer holds. The reality is far more complex: a fusion of welfare, warfare, and wealth accumulation that defines Pakistan’s political economy in 2025.
Until these overlapping interests are disentangled, Pakistan’s struggle for justice and civilian supremacy will remain what it has long been—a battle not only for votes, but for ownership of the state itself.
Adil Raja is a retired major of the Pakistan Army, freelance investigative journalist, and dissident based in London, United Kingdom. He is the host of “Soldier Speaks Reloaded,” an independent commentary platform focused on South Asian politics and security affairs. Adil is also a member of the National Union of Journalists (UK) and the International Human Rights Foundation. Read more about Adil Raja.. Read more about Adil Raja.
