Ayesha Siddiqa’s “Military Inc.” Causes Waves in Pakistan

Posted on June 1, 2007
Filed Under >Adil Najam, Books, Politics
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Adil Najam

As was expected – but much more so than expected becasue of its timing – Ayesha Siddiqa’s new book Military Inc.: Inside Pakistan’s Military Economy is causing waves in Pakistan and abroad.

True to form, the establishment has bothed up things even more than usual by trying to mess with the book’s launch in Islamabad. That only made the launch an even bigger news than it would have been. Here, for example, is the top of the page, front page news item from Dawn (June 1, 2007):

A book putting a critical spotlight on the military’s business nooks was launched from a virtual sanctuary on Thursday and some high-profile political reviewers seized upon it to denounce the army’s role in Pakistani politics.

The launching of the book, Military Inc: Inside Pakistan’s Military Economy, by Dr Ayesha Siddiqa, a military analyst, was due to have taken place at the capital’s elitist Islamabad Club. But the author told a surprised audience that not only the club cancelled the booking of its auditorium, “all hotels in Islamabad were also told� by unspecified authorities not to allow the use of their halls for this, forcing the organisers to find a sanctuary at a third floor room provided by a non-governmental organisation.

PPP’s legal star Aitzaz Ahsan said the time had come to stand up against the military dominance while PML-N Information Secretary Ahsan Iqbal accused Pakistan army generals of not learning a lesson from other countries that said goodbye to military rule. But some other speakers had a dig also at politicians for doing little to keep the military in check while being in power and at times celebrating the ouster of their rivals. Mr Aitzaz Ahsan said the expose of Ayesha, who puts the net worth of the army’s commercial empire at Rs200 billion, had come at a “defining moment� in Pakistan’s history following President Pervez Musharraf’s controversial charge-sheeting and suspension of Chief Justice Iftikhar Mohammad Chaudhry.

He narrated what he called the military’s moves in the past to convert Pakistan into a national security state contrary to the Quaid-i-Azam Mohammad Ali Jinnah’s vision of a welfare state and to forge an alliance with mullahs in search of an ideological justification for this, but said he thought now “a watershed has comeâ€Â?. Mr Ashan, who heads Justice Iftikhar’s legal team, saw “a turning pointâ€Â? in the March 9 presidential action against the chief justice that plunged the country into a judicial crisis and said: “We must grasp it.â€Â? Cheers went up in the congested premises of the NGO Leadership for Environment and Development as Mr Ahsan referred to what he called an unexpected “noââà ¢â‚¬Å¡Ã‚¬Ã‚? by the chief justice to the president’s demand for his resignation and, in a reference to the nationwide protest movement by lawyers, opposition political activists and the civil society, said: “The spillway of the Tarbela Dam has opened now.â€Â? He said although the chief justice would not speak about the presidential reference pending before the five-judge Supreme Judicial Council or his challenge to the reference before a 13judge bench of the Supreme Court, it was out of compulsion that an affidavit was filed on his behalf on Tuesday about what happened to him during his March 9 meeting with the president and for some days afterwards. “We were compelled to file that affidavit,â€Â? Mr Ahsan said, citing comments made by President Musharraf about the case as the reason.

Mr Iqbal rejected as a myth usual accusations holding politicians responsible for four military coups in Pakistan’s history and put the blame on what he called ambitions of army chiefs who toppled civilian governments from General Mohammad Ayub Khan, who later became field marshal, to General Musharraf. Comparing the ills of military interventions in politics to what cancer does to human body, he said Ayub Khan struck in October 1958 to pre-empt scheduled elections next year, while General Yahya Khan snatched power from him in 1969 at “virtual gunpoint� to prevent a handover to a National Assembly Speaker from then East Pakistan in the midst of a national democratic movement.

General Mohammad Zia-ulHaq, he recalled, seized power on June 5, 1977 a day after then prime minister Zulfikar Ali Bhutto and the opposition Pakistan National Alliance had agreed to hold fresh elections. He said Pakistan faced no bankruptcy despite international sanctions for its 1998 nuclear tests and “everything was normal� when General Musharraf, after being sacked, toppled then prime minister Nawaz Sharif on Oct 12, 1999. Mr Zafar Abbas, resident editor of Dawn, Islamabad, and Dr Farrukh Saleem, also complimented the 292-page book published by the Oxford University Press.

It speaks about the role of the military power in transforming the Pakistani society, armed forces becoming an independent class entrenched in the corporate sector and their five giant welfare foundations, or conglomerates, running thousands of businesses ranging from petrol pumps to industrial plants.

I have not yet read the book myself, however, I have talked about it with Ayesha many times – most recently in Boston some weeks ago – and am generally familiar with the thesis of the book. But, then, so is most of Pakistan. It is that the Military’s economic footprint has become too large for teh military’s own good. From cereal to banks to airlines, what she calls ‘Military Inc.’ is now everywhere in Pakistan’s economic life. Her argument is that this is nietehr good for Pakistan nor the military.

I am looking forward to reading and reviewing the book, which Ayesha has promised to send me soon. Meanwhile, we will keep an eye out for substantive reviews of this undoubtedly important work.

120 responses to “Ayesha Siddiqa’s “Military Inc.” Causes Waves in Pakistan”

  1. Bilal Zuberi says:

    Here is something from my blog I thought of yesterday when I read this news item:

    I received an email several years ago that listed the number of major Pakistani institutions that were either owned by the military or were now under direct control of the military. The list was eye opening, and frightening. Majors, Colonels, Brigadiers and Admirals (current or retired) were scattered all over the map and held positions that they simply could not have held by sheer merit. The list of industries where military or ex-military were in charge included steel mills, sugar factories, cement factories, fertilizer factories, cereal factories, banks, logistics companies, construction companies, utilities, even universities and other higher education institutions.

  2. Anwar says:

    As Adil mentioned the thesis of the book is well understood by Pakistanis. Several years ago I had jokingly mentioned to some friends connected to the GOP to constitutionally hand over Pakistan to the Fauji Foundation – this way every citizen would have become a stakeholder in the business.
    I am hopeful after reading this book ordinary citizens will understand the cruelty rendered to farmers of Okara farms by the army.
    Military enterprize also needs a market to become profitable – in this regard both military and select group of friendly civilians are embraced in coital lock that will require significant effort for undoing.
    I am not sure if the book has also touched the interests of army in the foreign lands – overseas deployment is the largest component of foreign exchange earning. There is hardly any accounting of that money.
    If there is a stable political government in place, in my opinion, it will be decade long effort set this mess straight – until then look forward to new defence housing schemes, privitisation, and guests from the holy land to visit Pakistan and convince people to support the military government.

  3. Almakky says:

    Here is one of the article on “The Hindu” regarding Ayesha’s book. And it has some have some interesting insights (those who have not read the book)..i.e.

    The beneficiaries are primarily officers, both serving and retired, but the author says the `Milbus'(BTW “Milbus” stands for Military Business) harvest is reaped by a wider circle of civilian businessmen and politicians who have decided in their own interests to play the game. And in this, says Ms. Siddiqa, lies the key to Pakistan’s story of repeated military rule. Civilian `clients’ are bound in predatory partnerships with the military, in turn strengthening it institutionally and increasing its appetite for power and profit.
    In Pakistan, `Milbus’ is present in all three sectors: agriculture, manufacturing, and services. And it operates at three levels: as an institution, through its subsidiaries, and through individuals.
    At the level of the institution, for instance, the military runs National Logistic Cell, the biggest freight transportation company in Pakistan. Its fleet of 1,689 vehicles is one of the largest in public sector transportation in Asia. The company is also engaged in construction of roads, bridges, and wheat storage facilities. The NLC is technically a department of the Ministry of Planning and Development but its ground operations are run by the army, and it is staffed by serving army officials. The net worth of NLC in 2000-01 was an estimated $68.35 million.

    http://www.hindu.com/2007/04/19/stories/2007041902 931200.htm

  4. Akif Nizam says:

    I read a similar post on BBC yesterday and then I was watching GEO where the interior minister of Pakistan was giving a speech and saying that the govt. is not going to allow attacks on the military and the judiciary. I think he was talking about some new law that may be forthcoming to curtial such speech.

    Things are going down the drain in a hurry for this govt. and mostly due to their own stupidity !

  5. Kruman says:

    This kind of work is the need of the hour. I commend Dr Ayesha for the audacity to venture into the hitherto “no-go” area, where she critically analyzed the business interests of the naPak Army Incorporated.

    On a related note it is very disappointing to see that the corps commanders are nothing but a bunch of yes-men and sycophants. A statement from ISPR says that the corps commanders reposed full confidence in Musharraf’s policies. They should’ve taken him to task for the judicial crisis, asking him to withdraw the reference against the chief justice.

    One thing is clear now, 60 years ago there was a movement to expel the Brits and create Pakistan. Today there needs to be another mass movement to end the military occupation of Pakistan. Shame upon the generals who break their oath and commit acts of high treason by subverting the constitution.

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