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User:Mar4d/Military economics in Pakistan

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Military economics in Pakistan refers to the military–industrial complex in Pakistan, as well as the various economic sectors which contribute to the military's finances and enterprise operations. The military of Pakistan has a key involvement in multiple theaters of the economy.

Army Welfare Trust building in Rawalpindi

Military-owned enterprises come under the aegis of the Ministry of Defence. These enterprises currently account for 3% of Pakistan's GDP and range across various sectors.[1] Another major organisation is the Army Welfare Trust (AWT), which comes under the Adjutant-General of the Pakistan Army. With assets worth $1 billion, AWT owns farms, real estate, a shoes factory, sugar mills, and petrochemical and pharmaceutical plants.[2]

Fauji Foundation - largest welfare organisation in Pakistan. Defence industry of Pakistan

Fauji Foundation

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Main article: Fauji Foundation

There are half a dozen major corporations affiliated with the Army, the largest of which is Fauji Foundation, a conglomerate worth $3 billion of assets. Industries in which Fauji Foundation has interests include cement production, sugar mills, food, textiles, fertilizer plants, gas and power, and education and healthcare.[3] Apart from ex-servicemen, Fauji Foundation also enrolls civilian employees.[4]

  • Fauji Cereals
    A fully owned subsidiary of Fauji Foundation, Fauji Cereals is a breakfast cereal brand. It was established in 1954 under collaboration with Quaker Oats England. Fauji Cereal products are ISO 9000 and halal-certified, and exported to various countries.[5] The company operates cereal manufacturing units and plants, and claims a 70% national share in the breakfast food market.[6] Its products include corn flakes, wheat flakes, rice flakes, chocolate flakes and pops, honey pops, porridges, ice cream and custard powders, kheer, barley, and rice and corn flours.[5]
Askari Bank
Fauji Foundation also runs Askari Bank, one of the country's largest financial institutions and the only military-owned bank in the world.[7] The Askari Bank was previously owned by AWT, until January 2012 when it was fully acquired by the Fauji Foundation due to financial reasons.[7][8]

Public utilities

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During Nawaz Sharif's second administration in the late 1990s, a number of key public utility services (including public utility corporations, haulage, public contracts and institutions) were placed under the military. The most notable of these was the Water and Power Development Authority (WAPDA), the national agency responsible for managing water and power infrastructure. Up to 35,000 personnel from the military were inducted to revive and oversee WAPDA's operations, and recover outstanding dues.[9]

Education

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See also: Military education and training in Pakistan

Foundation University, Islamabad Army Public Schools & Colleges System National University of Sciences and Technology, Pakistan Air University (Pakistan Air Force) Bahria University Pakistan Air Force schools and colleges

Real estate

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The Army is a prominent investor and holder of real estate in Pakistan. The Army is estimated to hold nearly 12% of the country's land [1] Under various army housing schemes approved by the federal government, retired servicemen and families of deceased soldiers are entitled to plots and residential facilities. Farmhouse and agricultural land are also offered at nominal rates to senior serving and retired officers.[10][11][12] High-ranking retired officers such as generals, air marshals and admirals, besides having a house may own several residential plots, acres of farmland and other property.[13]

Cantonments

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Main article: Cantonments (Pakistan)
 
The Karachi Cantonment railway station, built in 1898, is located in Karachi's iconic cantonment area.

In Pakistan, cantonments are military districts primarily containing garrisons, military bases and stations, offices, military hospitals, schools, housing establishments and other amenities. Cantonments were first established in South Asia during the colonial period as exclusive army quarters.[14] There are 56 cantonments in the country, located across major cities in all provinces.[15] They are outside of municipal control, administered and maintained instead by cantonment boards which come under the Ministry of Defence.[16] Each cantonment board is headed by a commanding military officer, who may belong to any of the three services. The other board members and locally elected councilors may be drawn from the general population per the Cantonments Act 1924.[17] The director-general of Military Lands and Cantonments (ML&C), the defence ministry department which oversees all cantonment boards, is also typically a senior uniformed official or civil service member.[16]

Apart from military service members and their families, cantonments are also home to civilian populations. They are divided into three categories, depending on their civilian residents: Class I (100,000 or more); Class II (between 50,000 and 99,000); and Class III (below 50,000).[14] Cantonment areas are considered well-planned, with independent water and electricity supplies and other urban provisions. They cover large areas, with expensive land in major cities.[18]

Defence Housing Authority

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Main article: Defence Housing Authority
 
Villa-style houses located in a DHA neighbourhood.
 
Marina Club in DHA, Karachi.

The Defence Housing Authority (DHA) is an upscale real estate and property developer of the Pakistan Army. It was established in 1980 via a presidential order, as a cooperative housing society for serving and retired Pakistan Armed Forces members.[19] The DHA is active in Pakistan's property market – acquiring and developing land, and providing high-end housing and civic facilities to military personnel. It has expanded over the years to the affluent and upper middle-class civilian populations.[20]

Prominent DHA housing societies are located in Karachi, Lahore and Islamabad. According to Steve Inskeep, DHA suburbs are typically characterized by mansions and prime stretches of real estate along Karachi's waterfront, high-rise apartment towers, clubs with "six star" facilities and golf courses.[21] The commander of the V Corps serves as the president of Karachi's DHA.[21]

In Lahore, the value of one DHA plot can be in excess of $1.5 million. The interest of investors in well-to-do areas like DHA has contributed to a housing boom and the mushrooming of affluent properties. According to Brian Cloughley, "there has been a great deal of money involved in the various DHAs" and "the growth of Lahore's Defence Housing Authority is so phenomenal that it has announced five new building phases since 2002."[22] Similarly, columnist Ayaz Amir described the DHA in Islamabad as "a massive defence housing project... its scale so impressive that it appears to dwarf all other national endeavours."[13] Other DHA projects have been established in Multan, Gujranwala, Bahawalpur, Peshawar and Quetta.[23]

Askari Housing Society, Lahore

See also

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References

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  1. ^ Singh 2008, pp. 130–142
  2. ^ Singh 2008, pp. 130–142
  3. ^ Singh 2008, pp. 130–142
  4. ^ "Careers - Overview". Fauji Foundation. Retrieved 28 July 2016.
  5. ^ a b "Fauji Cereals - Rawalpindi". Fauji Foundation. Retrieved 28 July 2016.
  6. ^ "About us". Fauji Cereals. Retrieved 28 July 2016.
  7. ^ a b "Fauji Foundation to acquire Askari Bank's 100pc shares". The Nation. 19 January 2012. Retrieved 9 December 2013.
  8. ^ Kardar, Shahid (9 January 2013). "SBP allows Fauji to acquire Askari Bank". Dawn. Retrieved 9 December 2013.
  9. ^ Singh 2008, pp. 130–142
  10. ^ "Kayani opens housing scheme for martyrs". The News. 27 November 2013. Retrieved 10 December 2013.
  11. ^ "Defence Housing Authority: Bill introduced in lower house of Parliament". The Express Tribune. 2 February 2013. Retrieved 10 December 2013.
  12. ^ Asad, Malik (15 September 2013). "Farm land allotment scheme for army officers". Dawn. Retrieved 10 December 2013.
  13. ^ a b Amir, Ayaz (10 December 2004). "Realtors' paradise". Dawn. Retrieved 10 December 2013.
  14. ^ a b "Military Lands & Cantonments (ML & C)". Cantonment Board Clifton. Retrieved 27 July 2016.
  15. ^ Zaman, Qamar (14 July 2013). "LB polls in cantonment boards: Unrealistic promise of defence ministry". The Express Tribune. Retrieved 27 July 2016.
  16. ^ a b Yasin, Aamir (21 July 2013). "DG Military Lands and Cantonments: Civilian post goes to armyman again". Dawn. Retrieved 27 July 2016.
  17. ^ Bhagwandas; Ghori, Habib Khan (25 March 2015). "44 councillors to be elected in eight cantonment boards across Sindh". Dawn. Retrieved 27 July 2016.
  18. ^ "Karachi Cantonment". Global Security. 11 July 2011. {{cite web}}: |access-date= requires |url= (help); Missing or empty |url= (help)
  19. ^ "Presidential Order". DHA Karachi. 2015. Retrieved 26 July 2016.
  20. ^ Cloughley 2008, pp. 156–159
  21. ^ a b Inskeep, Steve (13 December 2011). "Why the Pakistani army is bolstering opposition to its most important alliance?". Foreign Policy. Retrieved 10 December 2013.
  22. ^ Cloughley 2008, pp. 156–159
  23. ^ Wasim, Amir (21 July 2016). "50 commercial entities being run by armed forces". Dawn. Retrieved 26 July 2016.

Bibliography

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  • Singh, Ravi Shekhar Narain (2008), The Military Factor in Pakistan, Lancer Publishers, pp. 130–142, ISBN 9780981537894
  • Cloughley, Brian (2008), War, Coups and Terror: Pakistan's Army in Years of Turmoil, Casemate Publishers, pp. 156–159, ISBN 9781844157952
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