Inside Pakistan’s biggest business conglomerate the Pakistani military, Lt. General Davar

Inside Pakistan’s biggest business conglomerate the Pakistani military, Lt. General Davar 

In July 2016, the Pakistani senate was informed that the armed forces run over 50 commercial entities worth over $20 billion. Ranging from petrol pumps to huge industrial plants, banks, bakeries, schools and universities, hosiery factories, milk dairies, stud farms, and cement plants, the military has a finger in each pie and stands today as the biggest conglomerate of all business in Pakistan. However, the jewels in their crown are the eight housing societies in eight major towns where prime lands in well-manicured cantonments and plush civil localities in the possession of these societies are allotted to military personnel at highly subsidised rates. Even military awards are linked with the grant of farm lands and housing plots to military personnel.

Shuja Nawaz in his book, Crossed Swords, expounds the land grabbing propensities of Pakistani generals. He goes on to say that in the “late 1980s, as dictator fatigue set in during the Zia period, many army officers refrained from going out into the public in their uniforms as there was much resentment against the military for their over-indulgence in economic activities.” Later in 2007, “the country saw the jarring banners carried by lawyers who were protesting the removal of a chief justice by the military ruler: Ae watan ke sajeele Genrailo; saaray ruqbey tumhare liye hain (O’ handsome generals of the homeland, all the plots are just for you).”

Genesis in the General

The “Culture of Entitlement” in the military started during General Ayub’s time when he commenced the tradition of awarding land to army officers (the size of allotment depending upon the rank of the officer) in the border regions of Punjab and in the newly irrigated colonies of Sindh. General Zia also created a novel way of involving serving officers in commercial ventures by placing military lands and cantonments and the provisioning of logistics to the regional corps commanders. Thus, many senior army officers availed opportunities to acquire multiple plots in various cantonments for themselves at highly subsidised rates. These prime properties soon sparked nepotism in allotment and corruption among both the military and civil bureaucracies.

After being allotted plots in prime areas, it became common practice for army officers to sell their preferential allotments at exorbitant prices to well-heeled civilians. The military soon got involved in establishing several foundations ostensibly to help retired service personnel. These institutions virtually penetrated into all sectors of the economy and gradually propelled the military into a major business stakeholder in Pakistan’s economy. The military operates its economic endeavours at three levels with the ministry of defence (MoD) being at the top of the economic military network.

The MoD controls four major areas—the service headquarters, the department of military land and cantonments (MLC), the Fauji Foundation (also known as Fauji Group) and the Rangers (a paramilitary force). The department of military land and cantonments acquires land for allocation to the service headquarters, which distributes it among individual members. The three services have independent welfare foundations, which are directly controlled by the senior officers of the respective services. 

The military is also involved in public sector organisations like the National Logistics Cell (NLC), the Frontier Works Organisation (FWO) and the Special Communications Organisation (SCO), which are all controlled by the army. The Water and Power Development Authority (WAPDA) was placed under military control in 1998 with over 35,000 personnel now involved in its operations.

You name it and the military has it

The MOD does not directly manage the economic activities of the organisations under its control, but it is an instrument to mobilise resources, accord legitimacy to the varying commercial and other economic activities of its organisations and even field formations and units which run many subsidiary commercial ventures independently. In addition, there are four subsidiary organisations that are involved in the economic activities of the military. These include the Fauji Foundation, Army Welfare Trust, Shaheen Foundation (for retired Pakistan Air Force personnel) and the Bahria Foundation (for retired Navy personnel). These foundations, though controlled by their respective service headquarters, are run by retired military personnel. The profits accruing from the commercial ventures of these organizations are distributed to all shareholders who are retired military personnel. These are engaged in ventures like fertiliser and cement manufacture, cereal production, insurance and banking enterprises, education, and information technology institutes, besides airport services, travel agencies, shipping, harbour services and deep sea fisheries.

The influence of the MOD plays a vital role in securing public sector business contracts and financial and industrial inputs at highly subsidised rates. In recent years, profit making by retired military personnel has acquired even newer dimensions with them providing privatised security services to foreign contractors in security-sensitive regions like the FATA and KPK (Federally Administered Tribal Areas and Khyber Pakhtunkhwa). This follows the pattern as established by foreign security contractors in adjoining Afghanistan.

The Culture of Entitlement is getting stronger by the day. Several senior service officers have also been parked as ambassadors, governors, and nominated on other high-ranking bureaucratic posts in Pakistan. Successive army chiefs have continued with the practice of strengthening the special perks and privileges of their serving and retired personnel with respective civilian governments reluctantly acquiescing to all the fair and unfair demands of the armed forces.

It is an indisputable fact that Milbus contributes towards professionalism taking its toll when the military participates in nonmilitary commercial activities. The case of the People’s Liberation Army (PLA) in China is a classic example where some senior Chinese generals fell prey to the temptations of corruption and lucre. True to their style, the Chinese government stepped in and severely punished some of the offenders and thus discouraged the Chinese military from commercial activities.

Milbus in Pakistan is the never-fading and ever-growing clout of its military in its nation’s policies far beyond strategic and security matters. A major reason for this state of affairs is the independent, unaccountable financial muscle of the military. Since the Ayub era, no civilian government has ever bothered to tame in the military except, to some extent, Zulfikar Ali Bhutto for a short period. Most civilian governments have looked the other way at the financial handlings of the military’s commercial enterprises, primarily to buy peace with the powerful generals. Most members of Pakistan’s civil society and even its parliamentarians have wilfully ignored the military’s economic empire-building except for some senators like Sherry Rehman and Farhatullah Babar.

Among the many constants in Pakistan, Milbus too, in the foreseeable future, is likely to more than thrive as it is coterminous with the power wielded by the military in its national affairs. Currently, there are no indicators whatsoever that the Pakistan military will ever relinquish the primacy and unfettered powers it enjoys in its nation.

Excerpted from Lt. General Kamal Davar’s book Armed Forces and Their Corporate Interests with permission from Rupa Publications. We welcome your comments at ideas.india@qz.com.

https://qz.com/1134516/inside-pakistans-biggest-business-conglomerate-the-pakistani-military/

New offensive of Pakistan and Mehran Baloch, Dr Shabir Choudhry

New offensive of Pakistan and Mehran Baloch

Dr Shabir Choudhry     18 November 2017

Switzerland is known to be a country that has a neutral foreign policy. I am not sure if that is still the case.

Switzerland is home to many international institutions, including the UN Human Rights Council and its other bodies. Tens of thousands of delegates visit Switzerland and provide the country with enormous income.

It was during one session of the UN Human Rights I saw Mehran Baloch, who was addressing a seminar. Mehran Baloch speaks English fluently, and he very eloquently and effectively put forward the case of the Baloch people. I learnt many new things about Balochistan; and how the local people were treated by the government.

After that we have met many times. Once, I interviewed him and wrote an article about Balochistan as well. Apart from the public meetings we have had small private meetings over dinner or coffee. Last such meeting was in Geneva in September 2017. I have never heard him preaching hatred, extremism violence or terrorism.

Then question arises why the Swiss government has imposed a life time ban on his entry to the country, especially when he respected the Swiss laws; and was promoting his struggle within the parameters of the UN mechanism?

Was there some pressure from outside? If there was some pressure from another country or countries, then why Swiss government has buckled under this pressure? Is there something hidden - something we don’t know?

It is believed that it is the handiwork of Pakistani government and their secret agencies; and the Swiss officials could not stand the pressure. But can that be true? Has Pakistan become so influential in international relations? Or there was some other mechanism used by their secret agency to obtain the desired outcome?

The statement of the Swiss official indicates some pressure. A report published in the News by a famous journalist Murtaza Ali Shah indicates that the ban on Mehran Baloch was related to issues concerning “international relations.” The report further says that:

‘A Pakistani official, privy to developments taking place in Europe, said that Pakistan respected freedom of expression and criticism but had the right to pass its concern to countries if anything was going on against Pakistan. The official said that Pakistan has been regularly communicating with various western governments and passing its concerns and will continue to do that’. 1

This matter has great significance, as it is a clear human rights violation by a country that champions the cause of human rights, and hosts the UN Human Rights sessions in Geneva.

In my opinion, this is only a start of the Pakistani ‘diplomatic offensive’. There will be more problems for the Baloch people and other dissidents, including true Kashmiri nationalists who expose Pakistani policies on Jammu and Kashmir dispute.

During the September Session of the UN Human Rights in Geneva we saw pro Baloch struggle posters on street lamps, coaches and taxis in Geneva. The Pakistani government acted strongly and the Swiss government had to retreat; even though it is quite normal activity to have demonstrations and posters displayed in various locations to promote the cause people believe in. Citizens of Jammu and Kashmir also hold demonstrations in Geneva outside the UN building and sometimes display photos and posters.

After Geneva, we saw pro Baloch struggle posters on London busses and Black Cabs. Once again response of the Pakistani government was strong and sharp. Not only Transport for London agreed to take off the posters, but also extended an apology, even though these posters were bringing in very valuable income.

Instead, to the surprise of many, we saw posters on the busses about Balochistan which supported the Pakistan government’s narrative. Also, no matter what method they are employing, it is true that Pakistani influence to intimidate other governments is increasing, especially when it comes to Balochistan, terrorism, human rights, CPEC and Jammu and Kashmir dispute. It is difficult to say which mechanism has enhanced their ability to intimidate and harass others.

To strengthen Islamabad’s agenda, Pakistani and Jammu and Kashmir diaspora play a significant role. Their politicians, academics, students and other citizens lobby Members of Parliament, Councils, hold discussions, seminars and protests; and even harass and intimidate those who present a counter narrative.

To discipline diaspora threat of being declared ‘anti Pakistan’ and an ‘Indian agent’ is still very effective weapon in armoury of Islamabad. Apart from that, threat of losing property in Azad Kashmir and identity card frighten many potential rebels, although, it did not work in my case, as I have challenged them in court for not renewing my ID card.

One ‘Kashmiri nationalist’ said, I fully agree with what you say, but I can’t say that in public or on social media, because I don’t know what they may do to me when I go back for a visit. This sums up the appalling situation.

To conclude, I fear Mehran Baloch will not be the last person to be a victim of Islamabad’s new diplomatic offensive. Other people, including citizens of Jammu and Kashmir may soon face the music. We need to think, plan and act; and act soon.

Writer is a political analyst, and author of many books and booklets. Also, he is Chairman South Asia Watch, London and Director Institute of Kashmir Affairs. Email:drshabirchoudhry@gmail.com

Reference:

1.    https://www.thenews.com.pk/latest/245377-swiss-banned-mehran-baluch-over-risks-to-security