Pak has more multi-millionaire

generals than any other country…

WASHINGTON: The military in Pakistan has come to share interests with other members of the ruling elite and because it protects its vested interests, it has led to alienation of the masses, according to the Pakistani defence and security scholar Dr Ayesha Siddiqa.

Dr Siddiqa recently completed a scholarly attachment with the Woodrow Wilson Centre and is now completing her book on the commercial side of the Pakistan Army. In a long, question-answer interview to DesPrades.com, a popular US-based web publication edited by Irshad Salim.

Asked about her findings relating to the military, she replied, “First, the military has become predatory engaging in political and economic predation. Second, political predation is not complete without economic predation. Third, the military has mutated into a separate class that shares interests with other members of the ruling elite. Finally, because the military protects its vested interests, it leads to alienation of the masses.” She added that the process started in the 1950s with the Fauji Foundation. Asked how the setting up of the foundation was a “predatory” act, she argued that a politically strong entity that engages in political predation needs to feel economically or financially autonomous. This completes the picture of predation. The generals thought that they wanted to establish independent means of providing for their welfare and not depending on the civilians as in India. The financial autonomy gradually created the logic for greater interest in political control.

She held Ayub Khan responsible for setting the process in motion by acquiring land in Sindh and setting up his sons in business. Today, she added, a Maj General is worth about Rs 300 million. She said it was the army’s own estimate that it took up four percent of the GDP and it was her estimate that it owned seven to 10 percent of private sector assets. Asked for a figure, she said the business was worth about Rs 200 billion, but if real estate were added, the figure would rise to Rs 1 trillion plus, something that could be called the army’s “side economy.”

She explained that the figure “includes real estate, businesses done by subsidiaries, organisations and individuals.” She added, “You have to understand that this economy is predatory by nature because it does not accept any form of civilian control over it. It is independent in terms of planning, appropriation of funds, etc.”

When asked at what price the army bought land, she quoted the figure at Rs 30 to 60 per acre. In some cases it was more. There were two methods for getting land. She explained, “All the military land converted for personal use is given at the ridiculous price I quoted. Then there are other schemes where they pay a little more. For instance, the cantonement board distributed plots of 500 yards each by appropriating part of the parking lot of the Karachi Stadium. Each plot was for about Rs 600,000” against the fair market price of Rs 1.5 crore or Rs 15 million. She said the bulk of such land goes to the generals. She recalled that Gen Tauqir Zia as chairman of the Cricket Control Board had authorised himself to return this land that once belonged to the Cantt board for further distribution. She added that the entire Lahore Cantt was turned into housing schemes. In fact, except for Defence phase I & II (Lahore), the rest of the land does not even belong to the military.

She said in reply to a query that the Lahore Cantt covered and area of between 8,000 to 10,000 acres with a market value of Rs. 700 billion. The acquisition price for the army was Rs. 30 to 60 an acre, “the rate that officers pay.”

Dr Siddiqa said in answer to a question form interviewer Irshad Salim that these assets were acquired over time and their value should be added to the annual defence budget. If that were done, the current budget would jump from Rs 131 billion to over Rs. 400 billion. She said in reply to another question that in the army, “the higher you go the more pricey you become. A full general is worth Rs 500 million plus.” She said the forces own about 7 to 9 million acres in the Punjab alone, and less in Sindh.

She explained that 10 percent of land, according to the Colonisation of Land Act 1912, is allotted to the military. “Colonisation of land refers to each land reclaimed due to creation of water channels and other irrigation projects,” she elaborated. She added that India has scrapped the Act of 1912 because being a state moving towards capitalism, it would not create the means for “institutionalising feudalism.”

She agreed with the interviewer that the army’s interests converge with the feudal system. She said that it was only the feudals or the new rural capitalist class that bought land from the army so it would make no sense to destroy the class that bails it out financially. She added that after 1999, the generals had started to keep their lands as its value had gone up, especially after 9/11. She said the generals had turned into “absentee landlords.”

Asked if all this was based on the Act of 1912, Dr Siddiqa replied that there had been alternations too. “For instance, the act does not say that land meant for operational purpose be appropriated for personal use. It is against the law.” In answer to the question if land meant for operational purposes had been appropriated for personal use or given to housing societies, she answered, “Of course. All land in the cities is military land turned into housing colonies.” As to what the conclusion of her book was, she said, “The political leadership in Pakistan has to negotiate the military’s gradual withdrawal from the economy if they want democratic institutions to grow.”

Asked about the “carte blanche” given by the West to the military after 9/11, Dr Siddiqa replied, “The military always had carte blanche from the West. They need to see that the alienation of society is one of the consequences of the military’s predation. Where does the poor man go in Pakistan, Turkey and Indonesia if not to God? There is no other means of transferring power except alternative ideologies, especially when the military has turned into a class and protects its interests along with other elite groups.” To a question about the World Bank objecting to the present trends in Pakistan, she answered, “It is making nice noises, not crying foul. It will raise objections but what have they done about it! The man who once was part of the World Bank is now Governor State Bank of Pakistan.

http://www.southasianmedia.net/cnn.cfm?id=228414&category=Politics&Country=PAKISTAN

Re: Pak has more multi-millionaire

No surprises, but thanks for the article! not many nations allow the Armed forces to particpate in business as much as Pakistan does either. Also in most nations typical Army recruiting areas don't do financially as well.

Re: Pak has more multi-millionaire

yep, no surprises, the way Army is untouchable opens up a whole new world of corruption, the way it acquires (or rather grabs) land from "civilian" administration is simply outrageous. A civilian citizen would have to pay 1000s per square yard or so and these army loots will only pay paisas per square yard. and we call it Islamic Republic of Pakistan :(

Re: Pak has more multi-millionaire

Fauji foundation is a story of endless efforts and success. It has nothing to do with power-games. It is an organization that had set new examples for private sector. "Honesty is the best policy". Yes most of big role-players in Fauji foundation are generals but then it is an organization that was made by army for army. Retired army officers have put restless efforts in Fauji foundation.

  1. First, the military has become predatory engaging in political and economic predation. Military has always played their role in politics when politicians requested them. People of Pakistan and their increasing needs and decreasing interest in the country had helped a lot in this scenario.
  2. Second, political predation is not complete without economic predation In some sense it is true. Politicians need a lot of money. As of the stated example, Fauji foundation has nothing to do with military in general. It is a group of industrial units in which most shareholders have military background. Otherwise any one is free to invest in it.
  3. Third, the military has mutated into a separate class that shares interests with other members of the ruling elite *Very poor claim with no sense of Pakistan politics.* A minority group of military is always linked with politicians; even if they are just there to keep check on (corrupt) politicians that are selected by the public. Otherwise it is very hard to control Sheikh Rashid.
  4. Finally, because the military protects its vested interests, it leads to alienation of the masses *Yes the military protects its vested interests (at any price, even if they have to involve in politics) which are to defend Pakistan and its people*. If military does not interfere at times, then: [list=1]
  5. Politicians must have sold a big part of Pakistan to Arabs.
  6. Politicians must have risked our national security.
  7. Politicians must have been waiting to take some actions to create new jobs.
  8. Politicians must have been waiting to improve the telecom sector.
  9. Politicians must have been contacting Sohail Abbas to make a comeback to gain sympathies.

[/list]Military has no intentions in governning Pakistan or creating economic empires. Politicians (many of them even can't tell you how many countries are there on this planet) create situations where military must take control to ensure national security.

There are some exceptions in military, as well. But then five fingers can never be the same.

Re: Pak has more multi-millionaire

A very flawed reasoning: Historical records show that Ayub Khan was planning on taking over for a long period of time before the coup, in the end his Iskander Mirza role was to stop a fair election being held in 1959..similarly Zia removed ZAB despite a PNA-PPP agreement having been reached on new elections. I do concede that it is essentially the elite Military class which dominates..people at the rank of colonel and lower benefit very little from these policies.

Tariq Ali researched the role of the Military in Business matters quite thoroughly:

*This lack of transparency is extended to the maze of loss-making business enterprises run by the Army. The oldest of these is the Fauji Foundation, established as a charity for retired military personnel in 1889. It has since become a giant conglomerate in its own right with controlling shares in sugar mills, energy, fertilizer, cereals, cement and other industries—combined assets worth 9.8bn rupees. The Army Welfare Trust, set up in 1977 under General Zia’s dictatorship, controls real estate, rice mills, stud farms, pharmaceutical industries, travel agencies, fish farms, six different housing schemes, insurance companies, an aviation outfit and the highly accommodating Askari Commercial Bank, many of whose senior functionaries had earlier served at the discredited Bank of Credit and Commerce International; the AWT’s assets have been valued at 17bn rupees. The Air Force and Navy chiefs also have their own troughs: the Shaheen and Bahria Foundations.

Many of these enterprises have been engaged in corruption, although scandals usually erupt only when civilian businessmen have become too greedy in exploiting the opportunities they offer, or where the fall of a government has exposed its shady deals. Benazir Bhutto’s spouse Asif Zardari was implicated, via an intermediary, in short-changing the Air Force’s Shaheen Foundation in a dubious media venture. In another case, it emerged that a private businessman had bribed senior naval personnel in the process of defrauding the Bahria Foundation over a land-development deal. A lawyer petitioned the Supreme Court to outlaw all use of Army, Navy and Air Force insignia in private enterprise. He demonstrated how the foundations were contravening the Companies Ordinance of 1984, accused them and their partners of collusion and corruption, and pleaded with the Court to outlaw all commercial activities by the armed services. Unable to contest his arguments, the judges dismissed the case on a technicality—thereby revealing their own subordination to the colour khaki.

Contrary to the widely propagated myth that the Army can at least run things efficiently (‘probably the only successful modern institution Pakistan possesses’, according to an admirer in the London Review of Books), a detailed investigation by Ayesha Siddiqa-Agha has recently revealed that most of these businesses are run at a loss, with the generals siphoning off funds from the bloated defence budget to make up the difference. [7] The military are also entirely innocent of modern accounting systems: their books tend to ignore such factors as personnel and utilities costs, and in any case government auditors are warned not to examine them too closely. Meanwhile, their stranglehold over many areas of the economy stifles normal development. In the construction and transport sectors especially, the ability of Army-run companies such as the National Logistics Cell and the Frontier Works Organization to monopolize government contracts, whether under civilian or military regimes, forces smaller companies out of business. *

Re: Pak has more multi-millionaire

Most reports are written by people who have never worked with Fauji foundation or have spared some time to visit them at least, how can they claim about it. Areport about industrial and economic organization like Fauji is only trustable, if someone has worked with them from the start. Just making claims based on assumptions is never a good idea.

I can write a report on Bill Gates by sitting on My PC and how difficult it is to publish reports, books. Of course that will be just rubbish.

Re: Pak has more multi-millionaire

^ using that philosophy all independant research done in a scientific way is useless...in fact if the research is done in a proper way it is probably more effective because there is no conflict of interest.

Re: Pak has more multi-millionaire

Ayesha Siddiqa and Tariq Ali - Qadiani’s and Communists. You Pak military-haters are so desperate you have to stoop to quoting these sort of people. :rotfl:

Re: Pak has more multi-millionaire

:k:

Re: Pak has more multi-millionaire

Well documented facts…

The Militarisation of Pakistan

As armed forces personnel increasingly encroach on institutions in the public sector, the country begins to resemble one big military enterprise.

By Massoud Ansari

Pakistan green seems to have been replaced by khaki. Certainly, khaki is omnipresent in organisations across the country. In General Pervez Musharraf’s five-year tenure, hundreds of serving and retired officers of the Pakistan army have been given government and semi-government jobs, which should rightfully have gone to members of the civilian sector, ostensibly to ‘improve’ the performance of the institutions in which they have been inducted, and to eradicate corruption. Not surprisingly, the government has failed miserably on both counts: neither has the performance of these departments improved, nor does corruption indicate any downward trend. In fact, in some cases, the performance of departments under military personnel has deteriorated drastically.

  •    According to a list obtained by Newsline, between 800 to 900 retired and serving officials from the armed forces have been inducted at senior levels in federal, provincial, government and semi-government departments, instead of officials from the civilian bureaucracy. Most of these officials were appointed after Musharraf took over in 1999, and they continue to serve in the now 'civilian set-up' of former City Banker and current Pakistani Prime Minister, Shaukat Aziz. "We always had officials from the armed forces working in the civilian set-up, but the number of officials inducted in the civilian sector in the last couple of years is unprecedented," says an official. According to him, given the numbers and the manner in which armed services personnel are being placed in positions that rightfully should be filled by civilians, * it appears that "Pakistan today is not a country with an army, but an army with a country."
    
      Furthermore, many of the officers brought in do not even have the basic qualifications for the posts they have been given. For example, some of them have been appointed to the women's division while others are serving in the minorities division. "How does a macho man from the army, who has been indoctrinated from day one against 'Hindu India' qualify for a position in either the minorities division or the women's division?" asks an employee in one of these organisations. Or for that matter, one may well ask, in the printing corporation, the utility stores department or the education sector. At least four of the universities in the country - including the Punjab University, the Engineering University, Lahore, the University of Engineering Technology, Peshawar, and the prestigious Quaid-e-Azam University, Islamabad - are currently being headed by officials from the Pakistan army. 
    
     Conversely, in some instances, the appointments of armed forces personnel seem akin to demotions. The recent appointment of former Chief of Army Staff, General Jahangir Karamat, as Pakistani ambassador to Washington DC is one such case. "Can you imagine a man who was once more powerful than the Prime Minister will now technically be working under the foreign secretary," says an observer.
    
      "Those at the helm seem to think the ability to speak English is a major criterion in qualifying for a job," says an official at one of the institutions which seems to have been overrun by armed forces personnel. "They simply cannot understand that some of the jobs they have filled with their chosen appointees are highly technical and require corresponding expertise. Unlike the forces, not all positions are of an administrative nature where all one needs is the ability to issue marching orders to a junior."
    
       The official quotes the example of the Karachi Port Trust (KPT), which faced one of its worst crises ever when a ship carrying 65,000 tonnes of crude oil ran aground just outside the Karachi harbour on July 27, 2003, after languishing in shallow waters for 18 days, with the KPT authorities looking on. A massive rupture that developed in the vessel, disgorged nearly 30,000 tonnes of its cargo into the open sea, and as the oil washed on to Karachi's best-known beach and further along the shore, much of the area's marine life was destroyed, and residents of the vicinity who were exposed to the toxic fumes that emanated from the spill developed assorted skin and lung ailments. Interestingly, most senior management positions in the KPT today are filled by armed forces personnel who were brought in after General Musharraf took over in October 1999. They include Rear Admiral Ahmed Hayat as chairman, KPT and several other army and navy officers serving as general managers.
    
     Since armed forces officials have taken over control of KPT affairs, they have made various structural changes in the organisation and are now handling assorted technical assignments. For example, traditionally, the deputy conservator - usually an individual with years of hands-on experience at the job - supervises the timing of the berthing of vessels. However, at the time of the disaster, this assignment was handed over to the general manager (operations) who is an official of the Pakistan navy and has no experience at this particular job. Similarly, an aviator of the Pakistan navy was appointed traffic manager of the KPT - another highly technical position he is hardly qualified to fill. In addition to this, there is reliable information to suggest corruption in KPT ranks, and most of the beneficiaries are allegedly former armed forces personnel. As a result of the lateral entries to the KPT and the reports of corruption, several senior officials have opted for the 'golden handshake' and bid the organisation farewell, contributing to its decline.
    
    • Apart from the KPT, according to a list obtained by Newsline, officials of the Pakistan armed forces today are working in nearly 63 government departments in in Grade 18 posts and above. For example, the cabinet division is headed by Major General (Retd) Shahzada Alam Malik in BPS (Basic Pay Scale)-22. Additionally, at least 14 other armed forces officials are also working in senior positions at the cabinet division, in directorial posts. *
      

      Likewise, nearly one dozen officials from the army are serving in different positions of the communications division, from the chairman of the Port Qasim Authority, to the director generals, and managers. Another case in point is the railways division where nearly 40 officials from the armed forces have been inducted in various capacities. These include the secretary, Railways and Railways Board, a general manager, a director, the chief personnel officer, a chief manager, and a divisional superintendent, along with hosts of others placed in strategically important and potentially lucrative positions.

      Nearly 50 officers from the armed forces are also serving in various capacities in the Civil Aviation Authority. These include the posts of CAA chairman, directors of various departments, general managers and other senior posts.
      
      • Critics of the government point out how some of these lateral entrants are drawing special salaries. For example, in the National Reconstruction Bureau a retired brigadier is drawing a salary of 150,000 rupees per month and another brigadier at 140,000 rupees per month. A retired colonel’s take-home salary in the same department is 125,000 rupees monthly, while two retired majors have been appointed at 50,000 rupees per month. *
      In addition to the inflated salaries, there is the matter of corruption. "When you examine the figures for corruption by armed forces personnel you discover the latter are no better than officials from the civilian cadres," says a civilian official of one of the heavily military-manned organisations. He adds, "The only difference between the two is the fact that corruption by civilians is exposed and made public, but corruption involving members of the armed forces is kept under wraps."
      
      The workings of the National Accountability Bureau (NAB) certainly lead credence to this fact. Since it was established in 1999, NAB has taken up cases of corruption against dozens of civilians, both in the public and private sector, but barring one high-profile case - that of Admiral Mansurul Haque - barely laid a finger on any member of the armed forces, serving or retired. If any action has been taken against any officers, it has been done in secrecy.
      

      ** Nonetheless, various inquires reportedly carried out by NAB indicate that the national exchequer may have lost up to one billion USD in the shape of alleged kickbacks in international defence-equipment deals signed by the Army Welfare Trust, Shaheen and Bahria foundations related to tanks, submarines, mine hunters, Mirage fighters and army jeeps. **

      Inside sources disclose that NAB is in possession of some solid documentary, and substantial circumstantial evidence which would, if it was so inclined, enable it to launch a full-scale probe against nearly two dozen retired senior military officials, including three former chiefs of army staff, two naval chiefs and an air force chief, for their role in the purchases of tanks, submarines, naval mine hunters, Mirage fighters and army jeeps. But, there is nothing to suggest that NAB is close to filing any references against any former serving military official.
      
      However, while the presence of armed forces personnel in the public sector is perhaps unprecedented in terms of size, it is not time the first this has happened.
      

      ** The Report of the Commission of Inquiry - 1971 War, as declassified by the Government of Pakistan, was released recently. It quotes several respectable witnesses drawn from various sections of society, saying how a large number of senior army officers, particularly those occupying the highest positions, had not only lost the will to fight but also the professional competence necessary for taking the vital and critical decisions demanded of them for the successful prosecution of war because they had involved themselves in matters out of their purview. **

      Addressing the issue of the army's meddling in civilian affairs, the report says that the evidence before the commission shows that the process of moral degeneration among the senior ranks of the armed forces was set in motion by their involvement in martial law duties in 1958. The report maintains that army officers were exposed to the temptations inherent in direct contact with various sectors of civilian life and administration and many of them ended up by not only becoming arrogant, but also corrupt.
      
      The report concludes that its purpose is to draw attention to the admittedly corrupting influences generated by the involvement of the armed forces in the civil administration of the country and that such involvement seriously detracted from the professional duties of the army.
      
      It would serve our armed forces well to study the report and learn from history.
      

http://www.newsline.com.pk

Re: Pak has more multi-millionaire

Long and boring cut and pastes show the lack of knowledge and desperation of the poster. :hehe: Here’s to 8% plus growth rates, 12 billion forex, historic FDI levels, massive infrastructure development projects like Gwadur and KCH, and much, much more. The real documented facts. :k:

Re: Pak has more multi-millionaire

^ aww somebody who can't argue with relevant facts quotes irrelevant additional points lol..

Re: Pak has more multi-millionaire

Alot of these Generals became millionares in Zia's regime (lets not discuss how they did), most of them retired, end of story.

Re: Pak has more multi-millionaire

^ they are doing so again Spock..you can fault the generation before Zia for many things (corruption of power)..but they generally were financially cleaner. This is a natural reaction to a system which has access to large sums of money from overseas and from Pakistan and does not show transparency nor is it accountable to anyone.

Re: Pak has more multi-millionaire

Somebody who does not have confidence to write more than a few lines in their own words, yet instead posts long and boring cut and pastes written by hardline communists and passes them of as facts. Jeez louise. :rotfl:

Re: Pak has more multi-millionaire

AN ATHEIST AT CATHOLIC SCHOOL

Tariq was born in Lahore, now in Pakistan, then part of British-ruled India, in 1943. A Catholic school education did nothing to shake his life-long atheism, which he shared with his communist parents.

http://www.bbc.co.uk/bbcfour/documentaries/features/feature_tariqali.shtml

Re: Pak has more multi-millionaire

:D ^ wow communist..he must be anti Pakistani. lol.. so pray tell..which analyst writer would convince you or does peoples faiths and political beliefs make everyone suspect? Wait let me guess, any research which disagrees with you is wrong lol..again I sense I am arguing with a person of great intellect :D

Re: Pak has more multi-millionaire

Are you saying he is he not a communist? Anyone who disagress with you long and boring cut and pastes must be wrong? They are a good sleep tonic, even if written by commies. :smiley:

Re: Pak has more multi-millionaire

ahh a multi nick..and someone who can't argue without insulting..just because you can't refute a fact it's wrong..great intellects like i said :)

Re: Pak has more multi-millionaire

Commies make great cut and paste fodder for some people, especially the sensitive types. I hope you don’t find that too insulting? :smiley: :rotfl: