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Ayesha Siddiqa - Military Inc.: Inside Pakistan’s Military Economy

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Ayesha Siddiqa Military Inc.: Inside Pakistan’s Military Economy
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This bold book explains why it will be so difficult to persuade the Pakistani military to renounce political power and return to the barracks. It is a must read for anyone who cares about Pakistan or its future. Lee H. Hamilton, President and Director, Woodrow Wilson International Center for Scholars Siddiqa demonstrates [how] economic impunity and political impunity are closely related. Nicole Ball, Senior Fellow, Center for International Policy, Washington DC No one else has so comprehensively [explained] the armys involvement in Pakistans economy, nor linked it so clearly with the armys growing and seemingly permanent role in Pakistans politics. Stephen P. Cohen, Senior Fellow, Foreign Policy Studies, Brookings Complex, riveting, absorbing, Siddiqa has written a vitally important book which enhances our understanding of the army on the front line in the war on terror. Ahmed Rashid, Far Eastern Economic Review An incisive look at the largely hidden economic empire run by and for the benefit of Pakistans military. This courageous book will not please Pakistans generals. But no Pakistani, civilian or military, can afford to ignore its sobering analysis. Robert M. Hathaway, Director, Asia Program, Woodrow Wilson International Center for Scholars Pakistan is a strategic ally of the US in the war on terror. It is the third largest receiver of US aid in the world. Yet Pakistan is a state run by its army. Siddiqa shows how the power of the military has transformed Pakistani society, where the armed forces have become an independent class. The military is entrenched in the corporate sector. So Pakistans companies and its main assets are in the hands of a tiny minority of senior army officials. Siddiqa examines this military economy and the consequences of merging the military and corporate sectors. Does democracy have a future? Will the generals ever withdraw to the barracks? Milit

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Military Inc.

Inside Pakistans Military
Economy

Ayesha Siddiqa

Pluto Press
London Ann Arbor, MI

Military Inc Inside Pakistans Military Economy - image 1

First published 2007 by Pluto Press
345 Archway Road, London N6 5AA
and 839 Greene Street, Ann Arbor, MI 48106

www.plutobooks.com

Copyright Ayesha Siddiqa 2007

The right of Ayesha Siddiqa to be identified as the author of this work has been asserted by her in accordance with the Copyright, Designs and Patents Act 1988.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

Hardback
ISBN-13 978 0 7453 2546 0
ISBN-10 0 7453 2546 7
Paperback
ISBN-13 978 0 7453 2545 3
ISBN-10 0 7453 2545 9
ePub
ISBN 9781783719242
Kindle
ISBN 9781783719259

Library of Congress Cataloging in Publication Data applied for

10 9 8 7 6 5 4 3 2 1

Designed and produced for Pluto Press by Curran Publishing Services, Norwich
Printed and bound in India

To
the hope in my life, Sohail, and
the wretched of my land

We shall live to see,
So it is writ,
We shall live to see,
The day thats been promised,
The day thats been ordained;
The day when mountains of oppression,
Will blow away like wisps of cotton;
When the earth will dance
Beneath the feet of the once enslaved;
And heavensll shake with thunder
Over the heads of tyrants;
And the idols in the House of God
Will be thrown out;
We, the rejects of the earth,
Will be raised to a place of honor.
All crownsll be tossed in the air,
All thronesll be smashed.
And Gods word will prevail,
He who is both present and absent
He whos beheld and is the beholder.
And truth shall ring in every ear,
Truth which is you and I,
We, the people will rule the earth
Which means you, which means I.

Faiz Ahmed Faiz
America, January 1979

Contents

Acknowledgements

I am grateful to the Woodrow Wilson International Center for Scholars for providing me with funding and the opportunity to spend one year in the United States and research that material that was important for writing this book. I am indebted to Robert Hathaway, Saeed Shafqat and my friend Navnita Chadha-Bahera who took time out of their busy schedule to read some of the chapters and give their valuable comments. Also, a special thanks to Vali Nasr, Ayesha Jalal and Michael Brzoska who gave me new ideas to approach the subject and to look in directions that I had not considered earlier.

The list of people I must thank is long. However, I would especially like to acknowledge the help given by Lt Generals (retd) Syed Mohammad Amjad and Talat Masood, Admiral Fasih Bokhari, Hameed Haroon, Ikram Sehgal, Nazim Haji and Riaz Hashmi, who took the time to give me an insight into the military and Milbus in Pakistan.

I would also like to acknowledge the help rendered by some of my friends in searching for the material. I am indebted to Rabia Saleem, Junaid Ahmed, Rauf and Shehzad for providing valuable support in search of the necessary materials. I must also offer special thanks to my research assistants, Adeel Piracha, Ajaita Shah, Mahrukh Mehmood and James Murath for assiting with the hard work of finding the appropriate material. Also, a special thanks to Murtaza Solangi, whose moral support was essential during my stay in the United States.

Finally, an acknowledgement would be incomplete without mentioning the help and emotional support given by my husband, Sohail Mustafa. He was always there to encourage me to complete my work. I am also grateful to Aziz, Omar and Jamal for making it easy for me to work at home and complete this book. I must also acknowledge the emotional support of my dear friend Saadia Imad who was always there for me.

Last, but not the least, I thank the commissioning editor of Pluto Press, Roger van Zwanenberg. His comments on my initial book outline made me think about what I wanted to write.

Ayesha Siddiqa

Acronyms

ABL

Allied Bank Ltd

ABRI

Angkatan Bersenjata Republic Indonesia (armed forces of the Republic of Indonesia)

ACL

Askari Cement Ltd

ADB

Asian Development Bank

AEB

Askari Education Board

AG

adjutant-general

AMAA

Army Mutual Assistance Association (Turkey)

AWACS

airborne early-warning aircraft system

AWNCP

Army Welfare Nizampur Cement Project (Pakistan)

AWT

Army Welfare Trust (Pakistan)

BICC

Bonn International Center for Conversion

BCCI

Bank of Credit and Commerce International

BF

Bahria Foundation (Pakistan)

CDA

Capital Development Authority/Cholistan Development Authority (Pakistan)

CENTO

Central Treaty Organization

CGS

chief of general staff

CLS

chief of logistics staff Pakistan Army

CNS

chief of naval staff

CoD

Charter of Democracy (Pakistan)

CPJ

Committee to Protect Journalists (Pakistan)

DCC

Cabinet Committee for Defence (Pakistan)

DHA

Defence Housing Authority (Pakistan)

EBDO

Elective Bodies Disqualification Ordinance (Pakistan)

FF

Fauji Foundation

FFC

Fauji Fertilizer Company Ltd

FJFC

Fauji-Jordan Fertilizer Company

FOTCO

Fauji Oil Terminal and Distribution Company Ltd

FSF

Federal Security Force (Pakistan)

FWO

Frontier Works Organization (Pakistan)

GHQ

General Headquarters

IJI

Islami Jamhoori Ittihad party (Pakistan)

IMF

International Monetary Fund

ISI

Inter-Services Intelligence (Pakistan)

ISPR

Inter-Services Public Relations (Pakistan)

JS HQ

Joint Staffs Headquarters (Pakistan)

JCO

junior commissioned officer

JCSC

Joint Chief of Staffs Committee (Pakistan)

KPT

Karachi Port Trust

MCO

miscellaneous charge order

MGCL

Mari Gas Company Ltd

MI

Military Intelligence

MLC

Department of Military Land and Cantonment (Pakistan)

MMA

Mutahida Majlis-e-Amaal (Pakistan religious party)

MoD

Ministry of Defence

MQM

Muhajir Qaumi Movement (Pakistan)

MRD

Movement for Restoration of Democracy (Pakistan)

MSA

Maritime Security Agency (Pakistan)

NAB

National Accountability Bureau (Pakistan)

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