Can this Fattened Army Fight a War with India?

How did the Pakistan Army grow from 140,000 men in 1947 into the world’s seventh most powerful army, and arguably the country’s “king maker” institution? Ayesha Jehangir explains.

Pakistan’s former military chief General Qamar Javed Bajwa declared at the end of his tenure the military would no longer meddle in politics.

However, the recent arrest of former Prime Minister Imran Khan – once seen as the “army’s blue-eyed boy” – and the army’s intention to prosecute civilian protesters under military laws proves the men in uniform are still very much in politics.

The recent turmoil in Pakistan also serves as a poignant reminder of the considerable power wielded by the military.

Amid the ever-changing political landscape, the only permanent force is the military establishment, while the political parties only coexist to share power with it.

Khan, whose success in the 2018 general elections was engineered by the military itself before the two drifted apart, has more than 100 cases registered against him now. These cases range from corruption and sedition to terrorism and even blasphemy, which is punishable by death.

His arrest was followed by days of violent anti-army protests across the country. Protesters set fire to police vehicles, damaged public property and mobs stormed into the compounds of army commanders in Lahore and Rawalpindi.

However, days after the military’s intention of using army laws on civilians became public, events changed course rapidly. Peaceful rallies expressing solidarity with the army took the centre stage.

How did a military of roughly 140,000 men at the time of partition of India in 1947 become the world’s seventh most powerful army?

An army with a state

Since its creation in 1947, Pakistan has been under military dictatorship spanning a total of 34 years. When not directly in power, the military elite have discreetly engaged in hybrid regimes, exerting influence on civilian governments from behind the scenes.

The British colonial legacy has played a vital role in shaping Pakistan’s military today. British generals continued to head the Pakistan’s military until 1951, when the authority was transferred to General Ayub Khan. Just seven years later, Ayub became Pakistan’s second president through a military coup.

This foundation led to the establishment in 1948 of the spy agency Inter Services Intelligence. It gained remarkable influence in the 1980s, when the US covertly waged a war in Afghanistan using Pakistan as a proxy against the declining Soviet Union.

This period also saw the execution of an elected prime minister, Zulfikar Ali Bhutto.

Then came the era of religious extremism under General Zia-ul-Haq. This consolidated Pakistan’s obsession with the “strategic depth” for interference in Afghanistan.

In later years, Pakistan saw the assassination of an elected prime minister, Benazir Bhutto under the rule of General Pervez Musharraf. This was the time of enforced disappearances of civilian dissidents. Pakistan also became a safe haven for Al Qaeda leader Osama Bin Laden while receiving funds from the US as a frontline ally in the war against terrorism.

Pakistan’s army received substantial financial backing from the US during the Cold War. This bolstered its might domestically while allowing it to undertake adventures abroad for which it was unaccountable.

Traces of the Pakistani military’s involvement could also be seen in the Arab conflicts and the Bangladesh “rape camps”.

Military immune to hyper inflation in Pakistan

Pakistan is on the verge of an economic meltdown, weighed down by harsh pay-back terms from international lenders. With only A$5.2 billion worth of state reserves and a debt of over A$13.5 billion owed to the International Monetary Fund, the army nonetheless received an increased payment of A$11.27 billion in last year’s budget.

Between 2011 and 2015 alone, the army’s assets grew by 78%. By 2016, the armed forces in Pakistan ran over 50 commercial entities, including public sector organisations and real estate ventures worth A$30 billion. Today, their commercial assets are worth over A$39.8 billion.

Top military officers, including former army chief General Qamar Jawed Bajwa and army spokesman, General Asim Saleem Bajwa, have been revealed to have experienced significant financial gains within a relatively short time. Bajwa’s immediate family amassed substantial wealth, transforming into billionaires within six years.

General Asim Saleem Bajwa and his brother established a business empire that included 133 restaurants across four countries, operating under the Papa John’s pizza franchise. An investigation was also launched into real estate corruption by the brothers of former army chief Ashfaq Parvez Kayani, who for many years was the most powerful figure in the country.

The Pandora Papers exposed a long list of Pakistan’s former military officers who had accumulated immense wealth through tax evasions and corruption.

Over time, the military’s economic interests have gained prominence. This includes military-owned businesses, significant onshore and offshore land and property holdings, influence over defence contracts, as well as alleged involvement in ventures linked to the China-Pakistan Economic Corridor (CPEC) projects.

The military’s influence in Pakistan extends beyond politics and the economy. To control information dissemination, the military employs a combination of traditional and social media censorship. It also utilises vaguely worded draconian laws.

These laws effectively criminalise any form of “ridicule” directed at the army, carrying severe penalties such as long prison sentences and hefty fines. Slain journalist Arshad Sharif was charged with “sedition” under the same laws for allegedly spreading hate against the military and disrespecting state institutions.

As a nuclear state, Pakistan’s military is much like Voltaire’s description of Frederick II of Prussia: it is a state within itself, benefiting from its sheer size, a great deal of money, and an advantageous geopolitical positioning.

The military’s rise to power in Pakistan is linked to cultivating a collective ethos that portrays politics as inherently corrupt, while positioning itself as the sole bastion of honesty, discipline and nationalism.

It is because of this approach that despite corruption within the military, it has successfully distanced itself from the prevalent political culture, which is characterised by kinship ties, factionalism, patronage networks, and most importantly, corruption.

Ayesha Jehangir, Post-Doctoral Research Fellow at the Centre for Media Transition, Faculty of Arts and Social Sciences, University of Technology Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

22 Families in 1970 Growing Wealthier under Army Rulers.

Details

No	Name	Listed Assets	Unlisted Assets	Total Assets (Rs. in Millions)
1	Dawood	557.8	–	557.8
2	Saigol	529.8	–	556.5
3	Adamjee	437.6	–	473.2
4	Jalil	419.8	–	419.8
5	Colony	325.4	–	342.7
6	Fancy	280.4	–	330.5
7	Valika	320	–	320
8	Bawany	237.4	–	237.4
9	Crescent	199.7	–	199.7
10	Wazir Ali	132.7	–	199.7
11	Gandhara	153.2	–	153.2
12	Isphani	90.8	–	154
13	Habib	128.1	–	136.2
14	Khyber	127.5	–	127.5
15	Nisaht	64.6	–	128.9
16	Beco	113.8	–	113.8
17	Gul Ahamad	21.1	–	109.2
18	Arag	32.4	–	105.4
19	Hafiz	100	–	105.3
20	Karim	95.4	–	95.4
21	Milwala	96	–	96
22	Dada	48	–	90.6
23	Hyesons	68.4	–	90.4
24	Premier	77.3	–	89.3
25	Hussain Ibrahim	88	–	88
26	Monnoo	79.9	–	79.9
27	Maula Bakash	58.9	–	79
28	Adam	45.1	–	78
29	A K Khan	74.9	–	74.9
30	Ghani	41.2	–	71.2
31	Rangoonwala	44.5	–	68.2
32	Harijanss	61	–	61
33	Shafi	60.2	–	60
34	Fakir Chand	59	–	59
35	Hasham	53.9	–	58.9
36	Dadabhoy	53.9	–	53.9
37	Shahnawaz	52.7	–	52.7
38	Fateh	48	–	48
39	Noon	36	–	46
40	Hoti	40.6	–	45.8
41	Dost Mohammad	20.4	–	45
42	Farooq	36.7	–	36.7

Source: Industrial Concentration and economic power in Pakistan by Lawerence White.

22 Families in 1990

S. No	Group	Assets (Rs. in Millions)
1	Habib	5781
2	Crescent	4237
3	Dawood	3265
4	Saigol	2618
5	Wazir Ali	2279
6	Nishat	2279
7	Saphire	1755
8	Lakson	1559
9	Fazalsons	1384
10	Gandhara	1344
11	Dewan	1344
12	Bawany	1213
13	Adamjee	1141
14	Al-Noor	1124
15	Ghulam Farooq	1091
16	Gul Ahmad	1066
17	Ghani	1034
18	Pakland	1006
19	Atlas	956
20	Hashwani	808
21	Service	734
22	Colony	728
23	Fazal	719
24	Fateh	458
25	Ittefaq	398

Source: The Monthly Herald June 1990.

22 Families in 1997

S.No	Name	Manufacturing Assets	Fianancial Assets (Rs. million)
1	Nishat	27,792	165,145
2	Saigol	15,202	9,004
3	Crescent	10,586	12,353
4	Dewan	10,113	—
5	Ittefaq	10,000	—
6	Chakwal	9,264	5,530
7	Habib	7,612	4,657
8	Saphire/ Gulistan	7,583	4,657
9	Gul Ahmad/ Al-Karam	5,220	915
10	Packages	5,168	12,822
11	Chakwal	4,592	5,530
12	Atlas	4,359	2,555
13	Hashwani	4,251	382
14	Bibojee-Saifullah	3,806	637
15	Dawood	3,780	1,605
16	Monnoos	3,605	—
17	Fecto	3,542	—
18	Lakson	2,876	—
19	Gatron	2,870	—
20	Fateh	2,843	—
21	Sargodha	2,743	—
22	Al-Noor	2,573	—
23	Ghulam Farooq	2,465	—
24	Ibrahim	2,333	336
25	United	2,237	3,644
26	Bawany	2,189	53
27	Zahoor	2,178	—
28	Schon	2,038	2,259
29	Dadabhoy	2,016	151
30	Jehangir Elahi	2,038	—
31	Fazalsons	2,000	—
32	Rupali	1,910	12,833
33	Servis	1,707	—
34	Yunus Bros	1,689	997
35	Tawkkal	1,678	644
36	Sitara	1,619	—
37	Colony	1,620	94
38	Premier	1,501	—
39	Shahnawaz	1,299	—
40	Sunshine/ Sunrays	1,265	—
41	Fazal/ Fatima	1,263	—
42	Calico	1,235	—
43	Tata	1,060	102
44	Raja	1,020	—
45	Nagina	1,013	—

A comparison of 45 groups in 1997 and 1970 reveals 24 new names which means 24 shining stars of the 1970 have disappeared from the corporate horizon without leaving a trail. Those who have disappeared or do not rank among the top industrial families now, include Adamjee, Fancy, Valika, Isphani, BECO, ARAG, Hafiz, Karim, Milwala, Hyesons, Hussain Ibrahim, Maula Baksh, Adam, A K Khan, Ghani, Rangoonwala, Harijan, Shafi, Fakir Chand, Hasham, Khyber Textile, Hoti, Noon and Dost Mohammad.

The new entrants who have replaced them are, Ittefaq, Dewan, United, Saphire-Gulistan, Atlas, Chakwal, Fecto, Hashwani, Gatron, Lakson, Rupali, Tawakkal, Fatima, Servis, Ibrahim, Sargodha, Elahi, Schon, Kohistan, Fazalsons, Sitara, Nagina, Tata, Shahnawaz and Zahur.

The 42 groups ranked by White in the 1970 included 24 Karachi-based groups, 12 from Punjab and five from NWFP while I could not place whether Dost Mohammad was based in Karachi or Punjab. On the other hand, the 1997 ranking include 24 groups based in Punjab, 18 based in Karachi and three based in NWFP. At least 15 of Punjabi groups were Chiniotis while there were nine Memons, three Ismaeeli Khojas but not a single native Sindhi or Baluchi group. In fact, it is difficullt to identify more than a dozen companies on the KSE except for a few sugar mills headed by a sindhi or for that matter a Baluch Chief Executive.

The Karachi-based based groups have not only gone down in number but also in ranking. Except for Maula Baksh, Adamjee and Noon, all the families disappreaing from the 1970 list were headquartered in Karachi. Adamjee, at number 3 in 1970 do not appear in the ranking based on manufacturing assests, Dawood, no 1 in 1970 has gone down to14th position, Habib at no 1 in 1990 has relegated to sixth position, Bawany and Gul Ahmad have fallen from commanding heights in the 1970 to the bottom of the list in 1997.

Three top and seven of the top ten positions in 1997 are held by business groups from Punjab but a fundamental and structural change that has taken place between 1970-97 is the fall of Memons and the rise of Chiniotis.

In 1970’s every fourth company in Pakistan was owned by the Memons but in 1997 one in every seven companies listed on KSE belonged to Chiniotis. The two business communities of Chiniotis and Memons together own 206 of the 725 KSE companies.

The top 44 business groups of 1997 include 15 Chiniotis, 9 Memons, Three Ismaeelis, One Khoja and three Pathans from the NWFP.

As stated earlier in the chapter, ranking based on the listed companies does not reflect their actual economic muscle since they have consciously take steps to appear small, hiding a big part of their wealth in private and unlisted public limited companies. Although Ittefaq group has only four listed companies and Monnoos have none, it was possible to rank them because of govt. reports and estimates of the assets given out by the group members, in interviews or statements.

The main monnoo group headed by Jehangir Monnoo has up to 20 textile and sugar mills, big live stock and poltry forms. Several of Pakistan’s biggest industrial families like the Tabanis, the Haroons, Kasim Dada, Chaudrys of Gujrat, Raja group of Industries and Jaffer Bros have none or just one listed company but their wealth is legendary.

Tabanis do not appear in ranking of the rich of the rich families either in the 1970 or 1990 but with an origin going back to early 19th century they are undoubtedly one of the richest families of Pakistan today. According to a group profile Tabanis had opened their offices in Japan, Singapore and London, as early as 1920. The group currently has ten companies its fold including a private airline and is general sale agent for Uzbekistan Airline and is also sole agent for Ukraine Airways, Turkmenistan Airways, Kazakhstan Airways and Volga Dnepr. The group enjoys monopoly in barter trade with the former Soviet Union and its exports in 1992 were valued at 300 million dollars. It owns and operates a hotel in Tashkent, is setting up a garment factory in Uzbekistan and a cigarette factory in another Central Asia Republic. However, it does not have a single company listed on the Stock Exchange.

Fazal (Fatima) group based in Multan is ranked at number 37 on the basis of five listed companies but comprises of 24 industrial units.

The House of Habib is corporate enigma. As stated in last chapter, its Habib Bank had provided a loan of Rs 80 million to Pakistan govt. in 1947, Pakistan’s first industrial unit, Dentinic limited was launched by Habibs, none of its manufacturing units was lost in Bhutto’s nationalization or seperation of East Pakistan and in 1984, it comprised 90 public and private limited companies. Judged by the yardstick of known assets, Habib group comes at number 7, even after Dewan and Saphire who were born as recently as 1970s and 1980s. Perhaps the low ranking of the House of Habib, dispropotionate to the image of the Habibians can be explained by an article in the Souvenir published on the occasion of 50 years of Habib Bank which had observed that Habibian make considerable effort to ” hide the light under a bush, in the religious belief strongly held that to win the pleasure of Allah is worth infinitely more than to seek the plaudits of the public.“

Hashwani’s Hashoo group is at 21 in the national ranking of the top 44 companies but the assets acquired by the group during first two years of Bhutto govt. and the no of private and public companies in its fold tell another story. His catapulation under Benazir Bhutto is comparable to that of Mian Mohammad Mansha under Nawaz Sharif.

Adamjee, one of the biggest names of the 1970s could not end up at the bottom of the 45 families. But has the group realy gone down, considering that it has 15 private limited companies but only 4 listed companies in its fold? The group operates Pakistan’s biggest insurance companies with assets of over Rs 3 billion.
 Reference

Big and Beautiful

Table of Contents

22 Families over the years

Robber Barrons of Pakistan