Pakistan&rsquo;s enduring economic difficulties are widely recognised. In recent years, the nation has faced alarming inflation, a chronic foreign exchange crisis, and an overwhelming debt burden. These challenges have led to widespread unemployment, rising poverty, and daily hardships for a population already caught in the crossfire of recurring terrorist violence and military operations ostensibly aimed at combating it.
Despite this deteriorating scenario and the harsh austerity measures imposed by the IMF, Pakistan&rsquo;s disproportionately large military appears unaffected. In fact, it is steadily expanding its influence over the national economy.
The military's expansive role in domestic affairs extends beyond politics and foreign policy, significantly permeating the economic sphere. To begin with, it commands a substantial portion of the GDP &mdash; Pakistan&rsquo;s defence expenditure for FY 2025 stood at 2.3 per cent of GDP, surpassing equivalent figures for India, China, and the European Union.
According to a study by a leading business portal, Pakistan's defence budget grew at an annual rate of 12.6 per cent between FY17 and FY25, compared to India&rsquo;s 8 per cent. In stark contrast, education and healthcare were allocated just 2 per cent and 1.3 per cent of GDP, respectively.
Additionally, the military has established a vast network of private enterprises, collectively referred to as the &lsquo;milbus&rsquo; (military business) &mdash; a term coined by scholar Ayesha Siddiqa in her seminal work Military Inc.: Inside Pakistan&rsquo;s Military Economy.
This network includes commercial entities such as the Fauji Foundation, Army Welfare Trust, Shaheen Foundation, Bahria Foundation, and the highly controversial Defence Housing Authority (DHA). Through these institutions, the military maintains a significant presence in sectors like real estate, banking, manufacturing, agriculture, shipping, education, and media. Some estimates suggest the military controls around 12 per cent of the country&rsquo;s land.
While military officials claim that the institution&rsquo;s professionalism and efficiency benefit its economic endeavours, critics highlight the monopolistic, opaque, and unregulated nature of its dominance.
Defence-run enterprises enjoy tax concessions and limited regulatory oversight, suppressing local competition and private entrepreneurship.
By blurring the line between protector and profiteer, the military prioritises strategic and commercial interests over public welfare and market equity. Concerns are magnified when ventures become embroiled in corruption scandals, such as the DHA Valley Islamabad fraud, or neglect public interests, as seen in the Indus Canals initiative.
The DHA &mdash; originally intended to provide affordable housing for retired military personnel but now catering to elite residential projects &mdash; has drawn criticism over questionable land acquisitions and community displacement. Furthermore, the inclusion of senior military officials in the 2021 Pandora Papers exposed the diversion of vital national assets through offshore financial structures.
The &lsquo;milbus&rsquo; has not only exacerbated Pakistan&rsquo;s chronic underinvestment in human development, but also entrenched the military&rsquo;s political dominance. As the most powerful institution in the country, the military has ruled directly for nearly three decades and continues to exert significant influence during civilian administrations.
With such pervasive economic control, civilian governments remain largely stripped of the ability to formulate independent policy decisions based on public interest.
Hence, the military&rsquo;s deep entrenchment in the economy directly impacts Pakistan&rsquo;s socio-economic stability. Defence-linked monopolies, shielded from public audit and regulatory oversight, drain public resources and aggravate inequality.
Moreover, the &lsquo;milbus&rsquo; reinforces authoritarian governance, reducing civilian governments to mere symbolic entities. At a time when Pakistan&rsquo;s economic crisis is deepening, inflicting severe hardship on its citizens, it is imperative to reassess the allocation of national resources &mdash; particularly those channelled towards the military.
The military&rsquo;s commercial ventures must be subjected to the same regulatory scrutiny as civilian enterprises, and its market dominance curtailed.
This demands a fundamental recalibration of civil-military relations, underpinned by a reflective discourse on the military&rsquo;s appropriate role within a democratic society.
&mdash; IANS

Pakistan Army (image source social media)

As Pakistan’s economy sinks, its military expands unchecked into business and governance

Pakistan's Military Empire Fuels Inequality, Crisis

As Pakistan’s economy sinks, its military expands unchecked into business and governance

May 26, 2025 | 15:18 IST