Political Science Assignment

Submitted to : Professor Ali Waqar

Submitted by : Areesha Sajjad 234
MUDASSIR AZIZ 246

Umar bin ilyas 206

Shahzad Akram 204

Tayyab Akram 207

Under the article 80 of the constitution of islamic republic of Pakistan, annual budget for the
fiscal year 23-24 was presented before the national assembly by the former finance minister of
Pakistan, Senator Muhammad Ishaq Dar. This budget set to achieve economic growth target of
3.5% along with expected inflation of 21%. It was a good news for agriculture community since
all duties and taxes on the imported seeds were withdrawn and a subsidy of Rs6 billion was
announced on urea but it proved to be a burden for the business community since some
additional taxes were imposed. For government employees, 32% increase in the salaries was
suggested in the form of ad hoc relief. These reliefs and subsidies were of little importance
because of the record breaking inflation, dollar touching the sky ,utility bills highly unbearable,
depreciating currency and minimal reserves. In this assignment, we will be discussing what
amounts were allocated for the defence, education and health sectors in the economic crisis
with no signs of imminent recovery. Comparison of these sectors will also be made with the
corresponding sectors of India for the sake of comprehension of where our economy stands.
With numerous observers and analysts who have suggested lots of ideas so far of how to
improve this deepening situation, we will be critically analysing the situation along with some
proposals of remedying these excruciating circumstances.

WHAT IS BUDGET?
The word "Budget'' has been derived from a French word 'Bougette' which itself takes it's roots
from a Latin word 'Bulga'. These words meant a leather bag or a pouch.
Originally the word Budget was used to describe a bag carrying money or other essential
documents but with the passage of time, its meaning expanded to financial plans given by
governments or other organisations. So a budget is a financial plan that outlines a government's
or an organisation's expected revenues and expenditures over a specific period of time.
IMPORTANCE OF BUDGET
Financial planning: It allows a government to plan and forecast it's financial activities for the
upcoming year.
Resource allocation: It helps in proper allocation of resources to different sectors and programs.
Control and accountability: It provides a framework for monitoring and controlling expenditures
and for ensuring accountability for the financial decisions of the government.
Performance evaluation: It facilitates performance evaluation of how far a government has met
its financial targets.

BUDGET OF PAKISTAN
A total of Rs14.46 trillion was announced in the budget of fiscal year 23-24 in the national
assembly on 9th june, 2023. Resources of this budget included:
Net revenue 6.9tr
Non bank borrowing 1.9tr
Bank borrowing 2.8 tr
Net external receipts 2.7tr
Privatisation proceeds 15 bn

During the formulation of a budget, total expenditures of the government are also pre
determined for the coming year. These expenditures included:
Interest payments 7.3tr
Pensions 801bn
Defense 1.8tr
Grants and trasfer to provinces 1.4 tr
Subsidies 1.1tr
Running of civil government 714bn
Provision for emergency and others 250bn
Development and lending 1.1 tr
DEFENSE
There should be no disagreement over the importance of a strong defence system of a state
since it provides security to the citizens and protect the government against the external and
internal enemies and immunity against the terrorist groups. Geographically, Pakistan is a very
crucial country bordering two of the most powerful states of the world viz. India and china. It is
also a neighbour of one of the most controversial state of the world, Afghanistan which has
been on the radar list of Russia and America. It have been a haven for terrorist and pressure
groups which has been a real trouble for Pakistan. Iran is also a very critical country that have
been sanctioned by U.S, U.N, EU and U.K over time. Consequently, Pakistan needs a very
powerful and well built defense system with up-to-date technology and modern equipment
which requires a fine amount of budget. Let's see what amount is allocated to our defence
system.

BUDGET AND IT'S DISTRIBUTION

Defense sector was allocated a budget of Rs1.8 tr out of the total budget of Rs14.46 tr which
was 12.4% of the total expenditure of Pakistan and the figures astoundingly declined
approximately with 2 points as compared to the last year's expenditure which was 14.3% of the
total but the world bank's data claimed that the actual figure for the fiscal year was 17.9%.
Whole allocation was divided into two segments: defence services and defense administration
with the former taking Rs1804 bn and the latter Rs54 bn. Defense services was further
distributed as:
Employees related expenses Rs705 bn
Operating expenses Rs442 bn
Physical assets incluing arms and ammunition Rs461 bn
Civil works Rs195 bn
They also allegedly claimed Rs563 bn for the retired military personnel, Rs280 bn for the armed
forces development programs, Rs100 million for a new shipyad at gawarder and Rs1.9 bn for
the infrastructure upgrades at karachi.
According to the resources, army took Rs824.9 bn since it's the most important and largest in
number, air force Rs368.5 bn and navy took Rs188.2 bn.

EDUCATION
Education is the most important sector of any country since it prepares and trains the youth for
the future. There is no doubt that education played a pivotal role in the development of
successful nations like Japan. Ensuring a robust education is vital as it shapes the future of the
citizens.In Pakistan, with its diverse challenges, a strong education sector is crucial for building a
skilled workforce and fostering national development. However, it faces hurdles such as
insufficient infrastructure, limited access in remote areas, and disparities in quality. Therefore,
it's imperative to allocate adequate resources to enhance education, improve facilities, and
train educators, ensuring every child has access to quality education regardless of their
background. Let's examine the allocation towards education in Pakistan .

BUDGET AND IT'S DISTRIBUTION

The allocation towards the education sector was Rs97 bn which was 0.6% of the total
expenditure and the irony is that this budget was revised from Rs91 bn and surprisingly, Rs90
bn were allocated last year.
Out of 97, Rs76.5 bn was given to the tertiary education, Rs10.7 bn to the secondary education,
Rs4.4 bn to the pre-primary and primary despite the fact that 51% of pre-primary age children
are not going to school and the major factor of this disasterous figure is the lack of capital.
Anyway, Rs3.69 bn was allocated for the administration and cooperation between different
organisations and other educational affairs took Rs1.09 bn. Rs500 million was allocated for the
students of federally administered tribal areas and Balochistan and Rs1200 million for the
development of lab facilities across the country. Rs10 bn was also assigned for the distribution
of 100,000 laptops under the PM laptop scheme.
According to article 25-A in the 18th amendment to the constitution of Pakistan, Education is a
right of every citizen.
" The state shall provide free and compulsory education to all children of the age of 5-16 in such
a manner as determined by the law".
Hence the state should provide equal opportunities and quality education to all children
irrespective of region, religion or gender. Unfortunately the state has been lacking in this regard
because in all provision particularly Balochistan and even in Sindh, children especially girls have
been deprived of education due to the feudal system and lack of awareness to the parents.
Pakistan should employ all means to provide quality education to the children.

Health
It is unarguably true that health and nutrition make important
contribution to economic development. Healthy people are
more lively, energetic and effectively contribute in economic
progress, whereas, malnutrition, illhealth and diseases are
considered as barriers to economic growth. Delivering better
health services has continuously been the prime objective of
the government. Pakistan has a mix of public and private
health service delivery system. Under 18th Constitutional
Amendment, health service delivery has been transferred to
the provinces, though, Pakistan Vision 2025, which was
prepared in consultation with provinces provide a road map
which includes reducing the widespread prevalence of
communicable diseases, disease surveillance, addressing
inadequacies in primary/secondary health care facilities,
correcting rural/urban biases, bridging basic nutritional gaps
and improving the pharmaceutical sector to ensure the
availability, affordability and quality of medication drugs. An
inter-sectoral cooperation and sector wide approaches are
required to achieve the pioneering goals in the years ahead for
which, there is a dire need to increase resource allocation,
strengthening primary health care services and motivating the
human resources employed in health sector by good
governance. The country’s ownership of the SDGs would be a
prerequisite for health and development in future. Health
Expenditure Cumulative health expenditures of federal and
the provinces are estimated at Rs 384.57 billion for fiscal year
2017-18 which is 31.75 percent higher than the actual
expenditures of Rs 291.90 billion realized during fiscal year
201617. A brief look into previous year’s performance reveals
that total health expenditures increased both in terms of
growth and as percentage of GDP. It grew by 29.54 percent to
stand at Rs 291.90 billion during fiscal year 2016-17 against Rs
225.87 billion in 2015-16. Encouragingly, health expenditures
surpassed the budget allocation of Rs 273.34 billion set for
2016-17. While in terms of GDP, health expenditure increased
to 0.91 percent during fiscal year 2016-17 from 0.77 recorded
in 2015-16. During the months of Jul-February, 2017-18 health
expenditures consumed 43.5 percent of budget allocation to
reach Rs 167.16 billion against the expenditure of Rs 121.57
billion in the comparable period of fiscal year 2016-17. In terms
of growth it increased by 37.51 percent. Viewed from GDP, it
increased to 0.49 percent during JulyFebruary, 2017-18 from
0.38 percent recorded in the same period of fiscal year 2016-
17
Expanded Programme for Immunization (EPI) EPI programme
provides immunization to children against the seven vaccine-
preventable diseases under one year of age i.e. childhood
tuberculosis, poliomyelitis, diphtheria, pertussis, neonatal
tetanus, measles and hepatitis B. New vaccines like
pentavalent vaccine have been introduced with the help of
United Nations Children Fund (UNICEF). During the calendar
year 2017 eight million children of 0-11 months and 6.5 million
pregnant women were immunized against 7 deadly diseases
and tetanus toxoide vaccine respectively. Though after
devolution this has become largely the responsibility of the
provincial/region governments, but Federal EPI cell currently
took the responsibility of the procurement, coordination and
technical guidance whereas Provincial EPI cells are largely
responsible for implementation of the programme. World Bank
along with other financial partners such as World Health
Organization (WHO) and Japanese International Cooperation
Agency (JICA) has largely contributed for the smooth
implementation of the programme. Still the issues of routine
immunization in outreach areas of Federally Administered
Tribal Areas (FATA) and Balochistan need consideration.
Tuberculoses (TB) Control Programme Pakistan is ranked 6th
amongst 22 high disease burden countries of the world
according to WHO. In Pakistan, 40 percent of the burden of
disease is in the form of communicable diseases such as
Malaria and TB. Incidence of TB stands at 231/100,000
population and prevalence of about 300 cases per 100,000
population. The National TB Control programme (NTP) has
achieved over 80 percent Directly Observed Treatment System
(DOTS) coverage in public sector and in the last five years the
programme has provided care to more than half a million TB
patients. The programme is moving steadily to achieve the
global targets of 70 percent case detection. There are areas
where NTP has to improve management, quality bacteriology
services, engaging all care providers through public private
partnership (PPP), inter-sectoral collaboration and Evidence
Based Planning (EBP). Human Immunodeficiency Virus (HIV)/
Acquired Immune Deficiency Syndrome (AIDS) Control
Programme The number of injecting drug users has posed a
threat to increased numbers of total cases of the
disease/syndrome in Pakistan. According to National AIDS
Control Programme, the prevalence of HIV/AIDS is considered
to be as low as 1 percent, hence, not considered a high risk
country. The focus is on behavior change communication
(BCC), services to high-risk population groups, treatment of
sexually transmitted infections (STIs), and supply of safe blood
for transfusions and capacity building of various stakeholders.
Till date 4,500 HIV positive cases have been reported to the
AIDS Control Programmes at federal and provincial level. The
programme is technically supported by the UN agencies and
Global Fund against AIDS, TB and Malaria. Maternal & Child
Health Programme Mother and Child health has been one of
the priority areas of public health in Pakistan. This programme
has been launched to improve maternal and neonatal health
services for all, particularly the poor and the disadvantaged at
all levels of health care delivery system. It aims to provide
improved access to high quality Mother and Child health and
family planning services, train 10,000 community midwives,
provision of comprehensive Emergency Obstetric and Neonatal
Care (EmONC) services in basic and secondary healthcare
facilities, provision of basic EmONC services in 550 health
facilities and family planning services in all health outlets.
Despite these modalities, Pakistan has shown a modest
improvement and the Infant Mortality Rate (IMR), Child
Mortality Rate (CMR) and Under 5 Mortality Rate (U5MR) are
still very high as compared to other countries in the region. It is
envisaged that successful implementation will improve these
indicators.
Cancer Treatment Programme: Cancer is considered as one of
the deadliest
forms of non-communicable diseases and the numbers of cases are increasing alarmingly.
Pakistan Atomic Energy Commission’s 18 Cancer Hospitals all over the country are providing
diagnostic and treatment facilities to cancer patients. A state of the art cancer hospital has
been approved in 2016-17 to be constructed in Pakistan Institute of Medical Sciences (PIMS)
Islamabad to provide cancer diagnostic and treatment facilities to the population of ICT, AJK,
FATA, GB, and adjoining areas of Rawalpindi, Peshawar etc. The hospital will be completed
within five years. Provincial Initiatives in Health Sector Punjab Health Initiative Management
Company was established to make progressive movement towards a universal healthcare
coverage model embracing the whole and deprived segments of population, in which the
needs of the poorest are specifically protected by the government and ensuring the availability
and quality of essential services. Establishment of online registration of Hepatitis B and C
diagnosed patients for provision of free medicines was one of the important steps by the
Government of Punjab towards treatment of rising number of Hepatitis patients. Moreover,
24/7 safe mother ambulance service was initiated in rural areas of Punjab for transfer of
pregnant mothers to the nearest BHU or THQ/DHQ hospital in case of complications.
Government of Khyber Pakhtunkhwa extended its “Sehat Insaaf Card” scheme to provide
healthcare services to 15 million poor population in the province. Government of Sindh
established its first pediatrics telemedicine clinic in Children Hospital, Karachi with a focus to
provide round the clock consultant services to the children. Health Planning Systems
Strengthening and information Analysis Unit Ministry of National Health Services, Regulations
and Coordination (M/o NHSR&C) has established Health Planning Systems Strengthening and
Information Analysis Unit (HPSIU) in 2016. The key objective of this unit would be to initiate
strategic reforms in health sector to ensure universal health coverage which is sustained,
purposeful and fundamental in nature. Sustained in the sense that it is not a temporary effort,
and will have an enduring impact; purposeful in the sense of emerging from a rational,
planned and evidence-based process; and fundamental in the sense of addressing significant,
strategic dimensions of health system. Although devolution provides a window of opportunity,
it must go beyond and introduce far-reaching reforms in the health and social sectors. The
main scopes of the unit are:- i. Health planning and reform ii. Align health system
strengthening activities in the country iii. Health information analysis and its uses iv. Provincial
support and linkages Malaria Control Programme Malaria is the leading communicable disease
in the country being major element causing morbidity in Pakistan. Some districts of Pakistan
have high endemic incidence of malaria. Efforts have been made to eradicate malaria but still
some districts require significant attention for its eradication. 66 districts of Balochistan, FATA,
Khyber Pakhtunkhwa and Sindh shared highly malarial endemic diseased picture having annual
parasite incidence greater than 5 per 1,000 population. National strategic plan (2015-2020)
has divided districts in different strata’s in accordance with extent to which they are affected.
Balochistan fell in category-I of strata that was highly disease affected. Details of
achievements is listed below · Successful implementation of the new funding model grant fund
worth US$ 52 million. · Secured worth US$ 39.2 million to implement malaria control
intervention in 66 districts of Pakistan under New Funding Request of Global Fund. ·
Establishment of greater than 4000 malarial diagnosis and treatment centers. · Establishment
of greater than 12,000 capacity building (trainings) HCPs. · Introduction of greater than 10
million long lasting insecticide treated bed nets
Health Insurance Prime Minister’s Health Programme is a social protection initiative by
providing financial protection cover to all people in phases and the data of the Benazir Income
Support Progamme will be used. Under this programme provision of free of cost health
insurance to 3.2 million families (in Punjab, Balochistan and FATA in its two phases) living
below poverty line of US$2 per day to access cashless health care services package of 0.3
million rupees per family per year available in both public and private sector through a health
card issued by a highly transparent mechanism. Thousand of poor patients have been
benefited from the treatment facilities including deliveries, cardiac surgeries, cancer and other
major diseases in the best private and government hospitals in their districts, without
spending a single rupee. As of 31st January 2018 more than 1,655,657 families have been
enrolled in Prime Minister’s National Health Programme and more than 56,000 families have
been treated for various illnesses from 125 empanelled hospitals across Pakistan. There is also
an option of inter district portability in the programme which enables the enrolled
beneficiaries and families to access quality indoor hospital services from any empanelled
hospital, both in public and private sector. National Nutrition Programme In Pakistan,
stunting, wasting and deficiency micronutrients are endemic issue due to dietary deficiencies,
poor maternal and child health and nutrition, and high burden of morbidity. National Nutrition
Programme (NNP) 2017-18, the largest survey has been initiated by Nutrition Wing at the
Federal level. It includes 120,000 households and district specific data. It also includes Water,
Sanitation and Hygiene (WASH) indicators, adolescent and childhood obesity and the process
is being monitored and supervised through national steering and national technical
committees for National Nutrition Survey (NNS). Some of the key achievements of the
programme are as follows. · Development of national guidelines targeting different
components of malnutrition · Development of strategies for fortification, Infant and Young
Child Feeding Practices (IYCF), IYCF communication · Maintaining capacity building of
provincial health departments on IYCF, revised Community Based Management of Acute
Malnutrition (CMAM) guidelines, nutrition in emergencies, Behaviour Change Communication
(BCC) on breast feeding · Coordination with provinces and other relevant stakeholders for
wheat flour fortification and universal salt iodization through National Food Agency (NFA and
Provincial Fortification Alliances (PFAs) · Establishment of IYCF committees at provincial level
for planning and promotion of IYCF practices including breastfeeding · Establishment of infant
feeding committees in provinces parallel to Individual and Family Business (IFB) for oversight ·
Successful expansion of community based management of acute malnutrition (CMAM) for
children in districts with high burden of acute malnutrition (Emergency intervention) ·
Expansion of stunting prevention Programmes · Successful management of malnutrition
among mothers (going side by side with CMAM)
Achievements During the first half of fiscal year 2017-18, approximate funds amounting to Rs
544.0 million were provided and utilized by the AECHs to provide diagnosis and therapeutic
facilities to approximately 450,000 patients. Besides taking care of patients in the reported
period, the following targets have also been achieved: · Provision of 4 Linear Accelerators, 7
SPECT-CT and 2 Dual Head Gamma cameras among other equipment. · Up-gradation of
GINUM, Gujranwala including a new diagnostic center at Narowal (Rs 2,295 Million). · Up-
gradation of NORI Islamabad (Rs 2,987.525 Million). · Rs 287 Million worth of equipment for
NIMRA, Jamshoro. · Rs 150 Million worth of equipment for NORIN, Nawabshah. · Research
work continued on various IAEA TC/RCA Project and others in collaboration with different
international/national organizations. · Provision of teaching and training facilities to about
500 post graduate medical students / fellows of universities in the field of nuclear medicine,
radiation & medical oncology, radiology and medical physics. · Launching of cancer awareness
and prevention/control campaign especially for breast cancer awareness for early diagnosis
and treatment leading to better prognosis through arranging lectures, seminars, and
workshops in remote areas, through print and electronic media and mobile breast care clinics.
Special Projects PAEC, in order to provide better treatment facilities to the patients, continued
working on the following projects: ---- Establishing a cancer hospital in Gilgit Baltistan. ----
Establishing a cancer hospital in Azad Jammu and Kashmir. ---- Establishing a cancer hospital in
Mardan ---- Up-gradation of Bahawalpur Institute of Nuclear Medicine & Oncology (BINO),
Bahawalpur. ---- Up-gradation of Karachi Institute of Radiotherapy and Nuclear Medicine
(KIRAN), Karachi. Conclusion The government is dedicated to increase the health coverage to
meet the growing demand of increasing population. Health outcomes have improved over the
years but some critical weakness is a shortage of equipment and staff that continues to affect
health system. There is a dire need to expand services delivery and address the shortfall in
health related human resources and making better use of technology. Public private
partnership need to be encouraged and coverage of public health programmes like TB,
Malaria, Hepatitis and other communicable diseases need to be expanded.
India's total budget (2023-24)
Rs.4503097

GDP OF INDIA

GDP = $3.73 billion

GDP per capita = $ 2610
GDP growth rate = 6.3 %

India's rank in GDP

USA $23.3 trillion

China $17.7 trillion
Japan $4.9 trillion
Germany $4.3 trillion
India $3.75 trillion

Allocation of budget for defence , education and health

1.Defence = 5935.38 bn (13% of total GDP )

2.Education = 1128.99 bn
School education = 61 %
Higher education = 39 %
Unemployment rate of India is 6.1%
Fiscal deficit = 16.61 lakh crore
( 6.4 % of GDP )

TAX ASSUMPTION
1.Income upto 3 lakh ( no tax
2.Income 3-6 lakh (5% )
3.Income 6-9 lakh (10 %)
4.Income 9-12 lakh (15 %)
5.Income 12-15 lakh ( 20%)
6.Income above 15 lakh ( 30 %)

DEFENCE
According to Stockholm International peace research institute (SIPRI) .India was the third
largest defence spenders in 2021 after US and China .

Total defence budget = 5935.38 bn

Allocations :
Salaries = 1683.34bn
Capital outlay= 1713.75bn
Pension = 1382.05bn
Maintenance = 741.75 bn
Other expenses = 414.49

Salaries +pension = total

1683.34bn +1382.05bn = 3065.39bn

Salaries and pension accounts for 52%of the defence budget

Revenue and capital expenditure of the armed forces 2023-24
REVENUE CAPITAL

ARMY 3037.48 bn 373.42

NAVY 427.22 bn 563.41bn

Air force 564.54bn 582.69 bn

TOP IMPORTERS OF ARMS BET 2011 - 2021

1-India 12.4%
2-Saudia Arabia 9.0%
3- China 4.5 %
4- Australia 4.3%
5- Egypt 4.2 %
6- UAE 3.7 %
7- South Korea 3.4 %
8- Pakistan 3.2%

EXPORT OF DEFENCE PRODUCTS ( INDIA )

2019-20 91.16 bn
2020-21 84.35 bn
2021-22 128.15 bn

BUDGET (THREE FORCES )

ARMY 57%
Navy 17 %
Air force 19 %

EDUCATION

Total Education Budget = 1128.99 bn

School education = 688.05 bn ( 61% of military expenditure)
Higher education = 440.95 bn (39% of ministry expenditure )

MAIN HEADS OF EXPENDITURE

1. Universities 115.29 bn ( 10 % )
2.Samagra Shiksha 374.53 bn ( 33% )
3. Autonomous bodies 143.91 bn ( 13 %)
In 2023-24 ministry has allocated 800 crore for strengthening teaching , learning and results for
states .

Total Schools ( 2021-22 ) = 14.9 lakh

95.7% of school had a girl's toilet
96.2%of school had a boy's toilet
87% had a library
89 % access to electricity
47.5% had a computer
34% had internet

In 2023-24
4000 crore invested in infrastructure and showcase of schools

Major heads of expenditure under the department of higher education

1. Universities. 115.29 bn
2. Institute of technology 96.62 bn
3. Department of financial aid 19.54 %
4. Inst. of science and research 14.62 %
5. Inst. Of IT 5.60 bn
IN ( 2021 -2022 )
4.1 crore students were enrolled in higher education
2.1 crore Male
2 crore Female

Health
Overall public health expenditure was at 1.6% of GDP and estimated 2.1% of GDP.
WHO news has noted that India's allocation towards health is low in 2018-19 as compared to
other countries.
Malaysia 8.5%
Russia 10.2%
Brazil 10.5%
South Africa 15.3%
UK 19.7%
USA 22.4%
Germany 20.1%
Data from 2017-18 collected in 75th round National Sample Survey shows 42.5% of alignments
are treated in private clinics, 23.3% in private hospitals.
Pradhan Mantri jay Arogya Yojana( PMJAY ) is a public health insurance scheme.
This scheme provides health insurance of up to 5 lakhs to families of 65 crore individuals are
eligible population for PMJAY .
COVID-19

(2021-2022)
RS-14333 crore was spent
RS-35438 crore was spent on Vaccination Program
(2022-23)
RS-967 crore was spent on Vaccination.
Decoding pakistan’s military economy
The projects/units being run by the AWT are:
Two stud farms in Pakpattan and Okara
Army Welfare Sugar Mills, Badin
Askari Project (shoe and woollen), Lahore
Army Welfare Mess and Blue Lagoon Restaurant, Rawalpindi
Real estate comprising three small housing schemes in Lahore, Badaber and Sangjani
Askari General Insurance Co Ltd Rawalpindi
Askari Aviation Services, Rawalpindi
MAL Pakistan Ltd Karachi
Askari Guards (Pvt) Ltd, head office (HO) in Rawalpindi
Askari Fuels (CNG) with HO in Rawalpindi
Askari Seeds, Okara
Askari Enterprises, Rawalpindi
Fauji Security Services (acquired from Fauji Foundation), HO in Rawalpindi
Askari Apparel, Lahore
Askari Lagoon, Faisalabad.

The projects/units under Fauji Foundation are:

Fauji Cereals
Foundation Gas
Fauji Fertiliser Company Ltd
Fauji Cement Co Ltd
Fauji Oil Terminal and Distillery Co Ltd
Fauji Kabirwala Power Company Ltd
Foundation Power Co (Dharki) Ltd
Askari Cement Ltd
Askari Bank Ltd
Foundation Wind Energy (I and II) Ltd
Noon Pakistan Ltd Lahore
Fauji Meat Ltd
Fauji Fertiliser Bin Qasim Ltd
Fauji Akbar Partia Marine Terminal Ltd, HO in Karachi.
A company under the name of Pakistan Maroc Phosphore SA was set up in Morocco by the
Fauji Foundation in 2008.

Similarly, the projects, units and housing colonies under

the administrative control of Shaheen Foundation,
which is a trust of the Pakistan Air Force, are:

Shaheen Airport Services

Shaheen Aerotraders
Shaheen Knitwear
Shaheen Complex, Karachi
Shaheen Complex, Lahore
Shaheen Medical Services
Hawk Advertising
Fazaia Welfare Education School System
SAPS Aviation College
Air Eagle Aviation Academy
Shaheen Welfare Housing Scheme, Peshawar.
 An overview
The total annual revenue of the commercial projects run by Pakistan Army
Generals is nearly $26.5 billion which is more than India's Ambani or Adani
group
There is plenty of uproar about the difference between rich and poor, big business
houses and a common man’s fight for prestige and fight for Atta in Pakistan.
Especially, when our terrorist neighbor is presently undergoing severe financial crisis
and is on the verge of sovereign default. Business conglomerates play a vital role in
the economy of any country and when it comes to decode the biggest business
conglomerate of Pakistan which employs nearly three million people on its payroll
and is having an annual revenue of over $26.5 billion. It is none other than but
Pakistan Army.
When in 1954, then Army Chief General Ayub Khan and Defence Secretary Major
General Iskandar Mirza created Fauji Foundation, seldom they knew that the
organisation they are creating will control Pakistan’s economy one day. Today, the
total annual revenue of the commercial projects run by Pakistan Army Generals is
nearly $26.5 billion which is more than India’s Ambani or Adani group. Askar Bank
and Fauji Foundation, which are just two among the hundreds of these ventures
generate more than $10 billion of wealth annually. Interestingly, this $26.5 billion
translates to nearly 10% of Pakistan’s annual GDP owned by a single entity. By this
ratio, Pakistan Army is the richest commercial entity in the entire world.
How does these ventures’ function? These businesses are run under the charitable
banners like Asakari Foundation, Fauji Foundation (Pakistan Army), Shaheen
Foundation (Pakistan Air Force), Baharia Foundation (Pakistan Navy), Army Welfare
trust, Defence Housing Authorities (DHA) and so on. The very purpose of putting
them under charitable organizations is to evade taxation. While the visible purpose of
these organizations is the welfare of the service personal, but the entire profit gets
transferred to its stakeholders who are none other than retired Army Generals. Post-
retirement benefits for an Army General are huge in Pakistan.
Almost 50% of the Retired Corps Commanders and above officials of Pakistan Army/
Corresponding officials of Pakistan Navy and Air Force are directly absorbed in these
charitable organizations while another 30% gets deputed as Ambassadors, foreign
service or in bureaucracy. Do not worry, there are plans for a balance 20% too who
gets plum positions in various government projects, public sector undertakings,
advisors to governments and so on. Although these charitable (Commercial)
organizations are independently run by a board of directors, but all their overall
management is done by Pakistan Army’s General headquarters in Rawalpindi. You
name a business and will find Pakistan Army deep into it.
They are the biggest real estate developers in Pakistan having over 50 different
housing projects across the country which are not small. Each one of them is spread
over several thousands of acres. DHA Islamabad is spread in over 16000 acres while
DHA Karachi is over 12000 acres. These lands are allocated free of cost by the
government of Pakistan which is then sold at a huge premium to common public.
Pakistan Army manufactures steel, furniture, consumer goods, pharmaceuticals, food
products, cereals, processed meat and many other things.
Guess who is the biggest Fertilizer and cement manufacturer of Pakistan? Its Pakistan
Army indeed. Askari Bank, which is among the top 5 banking institutions of the
country is owned by them and they are the biggest player in the field of Wind and
solar energy in Pakistan. Not only this, but they also own mines, several commercial
healthcare facilities, and a large network of schools and colleges across the length and
breadth of Pakistan.
Are you tired of this? Please wait. Pakistan military is the biggest giant in Petroleum
and gas too with over two dozen entities involved in the import, distribution, and
processing of petroleum products. When America started its so-called war against
terror in Afghanistan, Pakistan Army got another lucrative opportunity. They started
supplying necessary goods to the coalition forces as well as private security to all the
foreign contractors working in Afghanistan, FATA & Khyber Pakhtunkhwa.
Although Pakistan’s space program has failed to kick off, yet Pakistan Army is the
biggest contractor to Pakistan’s SUPARCO (Space and Upper Atmosphere Research
Commission of Pakistan).
There is another field where Pakistan military is involved and that is the public sector
undertakings. More than a dozen PSUs including Water and Power Development
Authority (WAPDA), National Logistics Cell (NLC), the Frontier Works
Organization (FWO) and the Special Communications Organization (SCO) are totally
controlled by the Pakistan Army. If we add the revenue of these PSUs too in the $26.5
billion quoted above, then the figure will reach much higher.
Pakistan is a country where out of its 75 years of existence, there was direct military
rule for over five decades and indirect military rule for the rest of the time. This is
evident from the fact that none of the elected prime ministers of Pakistan could ever
complete his/her tenure. Some were hanged by Pakistan Army; some were
assassinated in public. Few were forced to leave the country overnight. This is the
reason that whomsoever comes in power in Islamabad, is always reluctant to point a
finger at these military commercial activities. Figures suggest that these organizations
have been constantly growing at a rate of over 20-30% annually while the rest of the
businesses of Pakistan are suffering losses. This is the highest growth of any business
venture ever in Pakistan.
Unfortunately, Pakistan is the only country which does not run-on logic but on the
harsh Anti-India sentiments which are pushed into the minds of its citizen. Whenever
the public talks of food, electricity, water and other amenities, Pakistan Army, and its
rulers gives them a rattle of Kashmir. Apparently, all the countries of the world own
an Army, but Pakistan is the only country where the Army owns the entire country.