Pakistan Economic Crisis: Why Pakistan Army controls Pakistan?

 

The Wealth and Power of the Pakistani Military

"The Pakistani military can be one of the richest companies in the world. But how can this be true?"

A country that recently struggled to import basic goods, with people filling balloons with gas and chasing trucks for a bit of flour—how can its military be so wealthy and powerful?

You might be shocked to learn just how rich and influential the Pakistani military is. The largest real estate company in Pakistan is owned by the military. The country's largest fertilizer company? Also military-owned. Many of the schools in Pakistan fall under military control. Remarkably, the total annual revenue generated by the military exceeds that of major Indian corporations like Reliance or the Adani Group.

The Pakistani Army is often referred to as a "State Within a State." This moniker stems from the military’s focus on profit rather than the welfare of the people. The military earns substantial revenue, which it distributes among its officers, a point even acknowledged by Pakistani military experts.

How did this happen, and what difference does it make to India? Let's explore this in today's segment of "Pakistan Explained," where we delve into understanding our complex neighbor from an Indian perspective.

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The Arrest and the Aftermath

On May 9, 2023, former Pakistani Prime Minister Imran Khan was arrested from Islamabad High Court, sparking nationwide protests. These protests escalated into riots, resulting in widespread violence and over 2,000 arrests. Imran Khan openly accused the Pakistani army, leading to unprecedented public demonstrations against the military. This level of instability in Pakistan is being compared to the crisis of 1971.

Imran Khan's Legal Troubles

Imran Khan has faced numerous legal challenges since his government fell in April 2022 after losing a no-confidence vote in Parliament. He and members of his political party, Pakistan Tehreek-e-Insaf (PTI), have been accused of about 140 crimes, including corruption, murder, and terrorism. Specifically, on May 9, Imran Khan was arrested on corruption charges related to the Al-Qadir University Trust, a welfare organization he and his third wife, Bushra Bibi, established in 2018.

The National Accountability Bureau (NAB) of Pakistan claims that Khan's government made a deal with property tycoon Malik Riaz, causing a loss of $239 million to the government. Despite Khan's repeated absences from NAB hearings, the former prosecutor of NAB, Imran Shafique, argues that the case against Khan is weak.

Other Legal Issues

Imran Khan also faces charges in the Toshakhana case, where he was accused of misreporting and selling expensive gifts from the state treasury. Although initially barred from holding political office for five years, he found temporary respite when a court allowed him to contest elections. However, his arrest in the Al-Qadir case also led to his detention in the Toshakhana case.

Public and International Reactions

Imran Khan's arrest triggered massive protests, with videos showing citizens, including a lone girl, challenging military headquarters. Prime Minister Shehbaz Sharif warned against violent protests, but Imran Khan's supporters persisted, leading to clashes with the police.

International reactions were mixed. UK's Prime Minister Rishi Sunak deemed it an internal matter, while opposition leader Jeremy Corbyn condemned the arrest. The U.S. and Canada issued travel advisories, and Amnesty International criticized Pakistan for blocking internet access, which affected many citizens.

Pakistan's Ongoing Crises

Pakistan is currently grappling with a severe economic crisis, with inflation at a record 30%. The country is also facing numerous terrorist attacks, adding to the instability.

Imran Khan vs. The Military Establishment

In November 2022, Imran Khan survived an assassination attempt, which he blamed on the Pakistani military. He accused ISI's Major General Faisal Naseer, along with Prime Minister Sharif and Interior Minister Rana Sanaullah, of plotting to kill him. This strained his relations with the military, which is said to have initially supported him when he became Prime Minister in 2018.

Historically, the Pakistani military has had significant control over the country's politics and business. Imran Khan's fall from favor with the military is reminiscent of other political leaders who challenged the military's authority, such as Zulfiqar Ali Bhutto and Benazir Bhutto, both of whom faced severe repercussions.

The Road Ahead

Imran Khan’s troubles with the military began in 2019 when General Asim Munir, then the ISI Chief, started investigating corruption allegations against him. This culminated in Munir becoming the Chief of Army Staff in November 2022, leading to increased pressure on Khan. Despite his current predicaments, Imran Khan's popularity remains unmatched, partly due to his cricketing fame and his successful World Cup campaign for Pakistan.

If a military coup occurs, public backlash is expected to be severe. Conversely, if elections proceed, many believe Khan’s party will win. However, his future actions and the response of the military will be crucial in determining Pakistan's stability.

Current Status

Imran Khan was released on bail on May 12, following the Supreme Court's ruling that his arrest was illegal. This has temporarily quelled the protests, turning them into celebrations. The situation remains fluid, and the next steps in this political drama will be critical for Pakistan’s future.

Strength of the Pakistani Military

Pakistan ranks 42nd globally in terms of GDP, but its military power is ranked 7th, higher than countries like France, Australia, Italy, and Israel. The military is the most powerful organization in Pakistan. With 560,000 soldiers, over 2,000 tanks, 4,000 artillery guns, 425 combat aircraft, 9 submarines, and 8 combat-capable aircraft, Pakistan's military strength is formidable.

Why so powerful? Because the Pakistani military controls numerous businesses, generating significant revenue. For example, Fauji Foundation, the second-largest private conglomerate in Pakistan, operates in diverse sectors such as fertilizers, banks, cement, petroleum, and schools.

The military's annual revenue exceeds $26 billion, outpacing major Indian corporations like Reliance or the Adani Group. The military’s net worth was already over £10 billion in 2007, four times the FDI in Pakistan that year. The military owns 12% of Pakistan's land, and every senior officer retires as a millionaire.

How the Military Became So Strong

Pakistan's history is marked by military rule. Leaders like General Ayub Khan, General Yahya Khan, and General Zia-ul-Haq toppled civilian governments, establishing military dominance. Consequently, no Pakistani Prime Minister has completed a full term.

The Pakistani military's control extends to businesses, owning over 50 different companies. The military runs a profit-making machine, justifying their dominance by branding civilians as incompetent and corrupt. This mindset perpetuates their control and power.

Army vs. the People

Efforts to curb military rule in Pakistan included amending the Constitution in 2010 to remove the President's power to dissolve Parliament. However, the military’s economic independence means it remains unaccountable to civilian leaders.

The military's dominance creates a vicious cycle: political instability leads to military rule, which discourages foreign investment, limiting economic growth and fulfilling civilian needs. This reinforces the military’s control and increases instability.

If the military’s economic resources were used for public welfare, Pakistan might avoid its current economic crises. For Pakistan to progress, its focus must shift from military expansion to economic stability and civilian welfare.

Understanding Pakistan's military dominance and its implications is crucial. As India, we must learn from Pakistan's mistakes to avoid similar pitfalls. The Pakistani military fears internal rebellion more than external threats, highlighting the need for systemic change.

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