UMAIR BABER

7271 MBA (ACM)

Institute of Business Management

As MUSHRRAF PRAYED

PAKISTAN KA

KHUDA HAFIZ

Author : Ayesha SiddiqaPublication Date : 31st March, 2007Publisher : Oxford University Press – Pakistan

: Pluto Press – London

This book is about

• This book shows how Pakistan is an unusual ally for the US. Pakistan is a military state, controlled by its army. Siddiqa examines the role of the military within Pakistan. The Pakistan military not only defines policy - it is entrenched in the corporate sector and controls the country's largest companies. So Pakistan's economic base, its companies and its main assets, are in the hands of a tiny minority of senior army officials. This merging of the military and corporate sectors has powerful consequences. Military Inc. analyses the internal and external dynamics of this gradual power-building and its larger impact that it is having on Pakistan's relationship with the United States and the wider world.

Author:• Ayesha Siddiqa is a military analyst with a Ph.D.

in War Studies from King's College, London. She contributes regularly to Jane's Defense Weekly. She was the 'Pakistan Scholar' at the Woodrow Wilson Center for International Scholars at Washington, DC for 2004-05.

Her other books are

1- Light Weapon Manufacture in Key 1- Light Weapon Manufacture in Key Public & Private Sector (1996)Public & Private Sector (1996)

2- Pakistan Arm Procurement & the 2- Pakistan Arm Procurement & the Military Buildup (2001)Military Buildup (2001)

Sooner this book MILITARY INC. was launched, the Government of Pakistan imposed a BAN on the book.

In Military Inc., Ayesha Siddiqa makes an elaborate study of MILBUS, a concept she defines as the “MILITARY CAPITAL that is used for the personnel benefit of the military fraternity but it is neither recorded nor part of the defense budget”In this book, she has mentioned that

- 7% of Pakistan GDP goes to the Military.

- 15-16% of Pakistan Economy is controlled by the Military

- The esteemed worth of the legally acquired assets of Pakistan’s Generals is in the range of $2.59Mn - $6.9Mn

- The Pakistan Military, as a single group, owns 12% of the total state land.

MILBUS(MILITARY BUSINESS) FWO

MILBUS

AGRICULTURE SERVICE LANDMANUFACTURING

Military business is present in all above four sectors and it operate at three levels:

1. Institutions

2. Subsidiaries

3. individuals

Institution

At the level of institution, National Logistics Cell is an example that is run by the Military.

HISTORY

1. National Logistics Corporation (NLC) was raised on 6th August 1978 to reduce the congestion at Karachi Port, which had resulted in a waiting time of 50 days for the ships and was costing the Government $12.5 Million per annum in demurrage.

2. In the process NLC introduced in the country the concept of containerization and became the largest multi-modal freight handler in the region.

3. NLC also serves as the Crisis Management Arm of the Government to handle and diffuse logistics emergencies.

NATIONAL LOGISTICS CELL

NLC CORE BUSINESSES ARE

• NLC Freight Services • NLC Construction• NLC Dry Ports & Border Terminals• NLC Polymers• Tolling • Energy• NLC Mechanical Complexes

The net worth of NLC in 2000-2001 was an estimated $68.35Million.

Frontier Works Organization (FWO) In the summer of 1966 a special organization was created by Pakistan

Army for the construction of 805 Kilometer Karakoram Highway Road

FWO BUSINESS includes

• Survey, soil investigation for roads, airfields, dams, bridges, tunnels etc.

• Technical planning including preparation/vetting of designs.

•Preparation/conclusion of contracts.

•Planning / procurement of stores, equipment and plant.

•Coordination / supervision of works, quality control and monitoring of projects.

•Financial management of projects including budgeting and costing.

•Logistic support to all units in the form of bulk supplies of rations, Petrol, Oil and Lubrications, construction materials, stores

Subsidiaries

• Fauji Foundation (Army)

• Bahria Foundation (Naval)

• Shaheen Foundation (PAF)

• Army Welfare Trust

Are the subsidiaries that are most transparent part of the MILBUS

Here is the illustration of their business

Fauji FoundationBUSINESSES  

• Fertilizer– Fauji Fertilizer Company Ltd.

• Cement– Fauji Cement Company Ltd.  

• Power Generation  – Fauji Kabirwala Power Generation Company Ltd. 

• Oil Terminal Operations – Fauji Oil Terminal & Distribution Company Ltd. (FOTCO) 

• Gas Exploration   – Mari Gas Company Ltd (MGCL)

• LPG Marketing & Distribution  – Foundation Gas 

• Corn Products– Fauji Cereals, Fauji Corn Complex   

• Financial Services   – Foundation Securities (Pvt.) Ltd.

• Employment Services– Overseas    Employment Services

• Security Services  – Fauji Security Services (Pvt.) Ltd

Bahria Foundation

INDUSTRY & SERVICES

• Commercial Complexes• Maritime Services• Education• Boat Building & Engineering Works• Paints• Security & Diving Services• Travel Agency• Recruiting Agency• Trading Agency• Pharmacy• Bread Manufacturing• Child Care Center

Shaheen Foundation• Aviation

– Shaheen Airport Services– Air Eagle

• Real Estate– Shaheen Complex Lahore & Karachi– Shaheen Housing Projects

• Educational Services– Shaheen School Systems

• Information Technology– Ensign Communiqué– Info Span Pakistan

• Trades & Services– Shaheen Aero Traders - Shaheen Medical Services– Shaheen Insurance - Shaheen Rent A Car– Shaheen Knitwear - Shaheen Fuel Filling Stations

• Welfare

– Employment

– Scholarships

Army Welfare Trust

Listed Companies• Askari Bank Ltd.• Askari Leasing Ltd.• Askari general Insurance Company Ltd

Other Companies• Askari Cement Ltd.• Askari Aviation (Pvt.) Ltd.• Mobil Askari Lubricants Ltd.• Askari Guards (Pvt.) Ltd.• Askari Information Systems Ltd.

Askari Projects• Askari Pharmaceuticals• Askari Sugar Mills• Askari Farms & Seeds• Askari CNG• Askari Woolen Mills• Askari Real Estate• Askari College for Entrepreneurs

INDIVIDUALS

INDIVIDUALAt the Level of Individual, The Military provides several benefits to its personnel.

• As Kiyani took the charge as General, about 72 Military officials were with drawn from civil services including 6 Major generals and 8 Brigadiers according to a statement issued by the inter-services public department

» (Courtesy Gulf News date March 29, 2008)

• A sure job after retirement, as the Musharraf regime has placed between, 4000-5000, military officers through a preferential appointments.

• Some invisible benefits like using contacts in the Military to swing business opportunities. Author has cited the name of former ISI boss Lt. General Hamid Gul daughter Uzma Hameed Gul running a private bus company which was able to get preferential access to bus route b/w Islamabad & Rawalpindi.

LAND• The biggest & most visible perk is the Rural & Urban Land given out to

serving & retired officers.

• They also get subsidies & other benefits to develop the land.

• The esteemed worth of the legally acquired assets of Pakistan’s Generals is in the range of $2.59Mn to $ 6.9Mn

• The Pakistan Military, as a single group, owns 12% of the total state land.

• Unlike other state institution, the military can convert this land for private usage.

• Out of 11.58Mn Acres of land under its control, more than half is owned by the Army Officers.

• Out of the 46 housing schemes directly built by the armed forces, none is for ordinary soldiers.

• Government of Pakistan ( 2007)Federal Minister for Defense Rao Sikandar said that facts has been distorted in the book and notorious propaganda reflective of personnel bias has been let loot against the armed forces. The book is aimed at undermining the entity of army.

It’s a matter of regret that attempt are being made to to damage the prestiege of this key institution of the country through publication of book based on baseless material.

CRITICS

June 5, 2008

PAK TRIBUTE

CRITICS

• Miss Siddiqa’s empirical riches were not easy to come by. She has dared to illuminate Pakistan Military as an OPPRESSIVE HOLDING COMPANY possessing not just security related business, but also hotels, shopping malls, insurance companies, banks, farms and airlines.

• Her book, while full of jargon, offers a detailed and powerful case study of a global phenomenon: HOLLOW ECONOMIC GROWTH.

November 4, 2007

By Stephen Kotkin

CRITICS

For observers of the India-Pakistan peace process, the book resurrects an old question: if the external threat on Pakistan's eastern border is so necessary for the military to maintain its internal supremacy, which includes its political and economic domination, would it ever allow or

enable fully normal relations with India?

April 4, 2007

By Nirupama Subramanian

CRITICS

The principal contribution of the book is in its unprecedented coverage of the subject.

The author subtly suggests that the military's attachment to power is premised on an unshakeable belief in its own capabilities.

Very effectively the author has brought into the open a facet of the Pakistani military hitherto unexplored. The timing of the book is opportune and captures the current mood of the nation. Most importantly, the author has researched a taboo subject sans drama and with precision. This makes the book both credible and thought provoking. Anyone interested in military regimes or South Asia will find this book valuable - a work of great importance, especially to those on the other sides of Pakistan's borders

By Swapna Kona

Research Officer

CRITICS

CRITICS

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