How is Pakistan’s Army Amassing Billions During Economic Crisis?

New Delhi, Aug 30 (NationPress) Despite the challenges faced by Pakistan's middle class due to stagnant wages, rising prices, and diminishing economic prospects, the nation’s military has quietly evolved into the largest business conglomerate in the country. This transformation has granted it significant influence over nearly every economic sector, as detailed in a recent report.

The report from europeantimes.org indicates that the extensive scale, authority, and privileges of the military's business empire, referred to as Milbus, have established it as a parallel entity within the state, often to the detriment of ordinary Pakistani citizens.

“By 2025, foreign analysts anticipate that the military's business operations will generate tens of billions of dollars annually, an astonishing amount for a nation enduring ongoing poverty and economic turmoil,” the report disclosed, referencing findings from the Economic Policy and Business Development (EPBD) think tank, which introduced the Wealth Perception Index 2025.

This index ranks the top 40 business groups in the country, both public and private. Notably, it highlights 10 publicly listed companies, each valued at over $1 billion, with the Fauji Foundation leading the list at $5.9 billion, followed by other corporate giants.

As Pakistan confronts severe economic difficulties, including declining industrial output, dollar shortages, and escalating energy costs, the influence of these top-tier enterprises led by the Pakistan Army reflects profound structural realities concerning wealth and power in the nation.

The reality is that the military's commercial ventures extend beyond the defense sector.

“Organizations like the Fauji Foundation, Army Welfare Trust, and Defence Housing Authority (DHA) hold assets in sectors such as banking, agriculture, manufacturing, real estate, education, and retail. These entities enjoy tax exemptions, privileged access to state land, and regulatory protections that shield them from typical market competition,” the report noted.

This results in a significant concentration of resources and profits among active and retired military personnel, while civilian businesses face continual challenges.

The increasing dominance of military generals over Pakistan's economy is redirecting the nation’s resources toward defense spending amidst rising poverty and unemployment. Despite the economy struggling to survive on IMF loans, the military appears unimpeded in its spending on weaponry such as tanks and aircraft.

Pakistan's per capita income has stagnated and even declined in recent years, illustrating deepening economic woes. Compared to its regional counterparts, Pakistan’s GDP per capita is significantly lower—projected at $6,950 in 2025. The widening economic gap between urban and rural areas exacerbates inequality, as reported by the latest article in Pakistan's newspaper, 'Observer'.

According to the World Bank's findings for 2025, nearly 44.7 percent of the population lives below the poverty line, based on a revised threshold of $4.20 per day for lower-middle-income countries, a staggering statistic that highlights the extent of deprivation.

Even more troubling is that 16.5 percent of the population, approximately 39.8 million individuals, exist in extreme poverty, earning less than $3 per day, a sharp increase from prior estimates of 4.9 percent, the article stated.