Dr Ayesha Siddiqa Says Each General Worth About 30 Crore

Pakistan Army’s Multimillionaires

Dr Ayesha Siddiqa-Agha did her doctorate from King’s College, London in 1996 and has worked on issues varying from military expenditure, defence decision-making, nuclear deterrence, arms procurement, arms production to civil-military relations in South Asia. She is also a Ford Fellow and more recently Pakistan Scholar at t he Woodrow Wilson International Centre for Scholars.

She began her professional career with the Pakistan Navy as the Director of Naval Research, making her the first civilian and woman to work at that position in Pakistan’s defence establishment. 

 Her major publication to date is the book Pakistan’s Arms Procurement and Military Buildup, 1979-99: In Search of a Policy (Palgrave Press, 2001). 

Extracts from an interview 

Question

: So what is this book about?

Dr. Siddiqa

: This book is about military business operations with a case study of

Pakistan.

Question:

So what prompted you to write this book?

Dr. Siddiqa:

I was a civil servant. During the course of my work I had to deal with numbers of military spending and doing that one slowly realized that a lot was hidden.It is the search for numbers that took me in this direction. The other thing is that it is essential to understand the dynamics of the institution that virtually controls Pakistan’s past, present and future.

I joined the civil service in 1988 and left in 2001. Served in military accounts, defence audit and later the navy.

Question:

Going back to the Pakistan army’s business, what are your findings?

Dr. Siddiqa:

Several. First, the military has become predatory engaging in political and economic predation. Second, political predation is not complete without economic predation. Third, military has mutated into a separate class that shares interests with other members of the ruling elite.

Finally, because the military protects its vested interests, it leads to alienation of the masses.

It dates back to the early 1950s. The business ventures were started with the establishing of the first foundation called the Fauji Foundation in 1953. This was established with the war veteran’s rehabilitation fund of Rs 18 million.

A politically strong entity that engages in political predation needs to feel economically or financially autonomous. This completes the picture of predation. The generals thought

that they wanted to establish independent means of providing for their welfare and not depending on the civilians like it happened in India. The financial autonomy gradually created the logic for greater interest in political control.

It started right then with Ayub Khan and his cabal getting agricultural land and establishing independent means for themselves.Look at Ayub Khan. He not only got several squares of agricultural land in Sindh, he also established his sons into business. Look at the entire lot of generals at the moment.

A Major General has a legal worth  of about Rs. 300 million [Rs. 30 crores]. These are conservative estimates.

Army economic power is about 4 % of GDP. I would say that their share in private sector assets is about 7-10 percent of private sector assets. This is a large number for any single group. So hey are worth about Rs. 200 billion. It is just the business. If you put in real estate then we are talking about a Rs 1 trillion plus economy.

This includes real estate, businesses done by subsidiaries, organizations and individuals. You have to understand that this economy is predatory by nature because it does not accept any form of civilian control over it. It is independent in terms of planning, appropriation of funds, etc

Question:

If Pakistan army’s assets total Rs 1 trillion can they fund Pakistan’s annual budget wholly or partially if they have to?

Dr. Siddiqa:

This would, converting these resources into liquid assets and then it would be possible to pay. A lot of these resources are state resources that could provide for military expenditure and more. It is difficult to say that this money would fund the entire budget. Of course, it can but over what period? These assets were acquired over time and their value should be added to the annual defence budget.

Question:

How much land does the forces own in each province?

Dr. Siddiqa:

Difficult to bifurcate but to give you a taste – they own about 7-9 million acres in Punjab alone

Most of the land is around the 2 barrages constructed after independence. Because they didn’t make new barrages.

Question:

What is their modus operandi in getting these lands allotment

Dr. Siddiqa:

10 % of land, according to the 1912 Colonization of Land Act, is allotted to the military

Question:

Does India have this act too?

Dr. Siddiqa:

No. They got rid of such acts when they did land reforms. Remember India is a state moving towards capitalism. A capitalist state would not create means for institutionalizing feudalism

Question:

Are you saying Pakistan army has institutionalized feudalism?

Dr. Siddiqa:

I am saying that it is a feudal institution as well

Question:

So in that case their interests converge with feudal system correct?

Dr. Siddiqa:

Yes

Question:

Do you think they resisted land reform along with the feudal?

Dr. Siddiqa:

I wouldn’t say that they resisted but they had sufficient stakes not to pursue a policy that had a negative impact on their benefits. For example, who buys the land the Faujis sell? The local feudal or the new rural capitalist class that is equally feudal in nature. Why should the officers then try to destroy the class that bails them out financially. After 1999, generals have started to keep their lands

Question:

What happened after 1999

Dr. Siddiqa:

Since the value of land has gone up, especially after 9/11, generals now  keep lands and have turned into absentee land lords

Question:

Why did the value of land in Pakistan go up after 9/11?

Dr. Siddiqa:

Because of the money that started to flow in from Pakistani expatriates plus other Muslim countries

Question:

What is their modus operandi in getting these lands allotted to generals individually and to their housing societies collectively?

Dr. Siddiqa:

The provincial governments allot the land to the Ministry of Defence who then gives the land to the three services for further dispersal. The land is also given to the Jawans but the quantity is lesser than what is given to the senior officers. Plus, the generals get greater facilities in making the land cultivable.

Question:

All this is based on 1912 colonization of land act that India got rid  of and Pakistan still has?

Dr. Siddiqa:

Yes, but they have done alterations as well. For instance, the act does not say that land meant for operational purpose be appropriated for personal use. It is against the law

Question:

Are you saying that land meant for operational purposes are or have been appropriated to the generals for personal use or to the housing societies?

Dr. Siddiqa:

Of course. All land in the cities is military land turned into housing colonies

Question:

What is the conclusion of your book?

Dr. Siddiqa:

Simple: The political leadership in Pakistan has to negotiate the military’s gradual withdrawal from the economy if they want democratic institutions to grow

Question:

At what value does the army buy land?

Dr. Siddiqa:

Between Rs. 30-60 per acre. In some cases they pay more. This refers to the private housing schemes

Question:

You mean in Defence Society in Karachi, the army gets land from the provincial govt for 30 to 60 rupees an acre only?

Dr. Siddiqa:

There are 2 methods for getting land. All the military land converted for personal use is given at the ridiculous price I quoted. Then there are other schemes where they pay a little more. For instance, the Cantonment Board distributed plots of 500 yards each by appropriating part of the parking lot of the Karachi stadium. Each plot was for about Rs 600,000

Question:

What was the fair market value of each plot at that time?

Dr. Siddiqa:

One and a half crore

Question:

Who got these plots?

Dr. Siddiqa:

Generals. The bulk goes to generals. This was done by General  auqeer Zia. As Chairman Cricket Control Board he authorized himself to return this land that once belonged to the Cantonment Board for further distribution

Question:

Any more instances of such land grabbing?

Dr. Siddiqa:

The entire Lahore Cantonment was turned into housing  schemes. In fact, except for Defence phase I & II (Lahore), the rest of the land does not even belong to the military

Question:

How many acres is Lahore Cantonment, if you know?

Dr. Siddiqa:

About 8000 to 10,000.

Question:

What is its fair market worth now

Dr. Siddiqa:

Runs into billions. It should be around Rs. 700 billion

Question:

What was the “grabbing price”

Dr. Siddiqa:

As I said, Rs. 30-60. This is the rate that officers pay. I recall a journalist telling me that once at a press conference Sardar Attaullah Mengal declared that while the military regime constantly lambasted the Baloch sardars like him for cornering the wealth of Balochistan, he would gladly swap all his assets with those of any general any time, any day. It soon becomes very obvious that most of us have opted for the wrong career. If a banker friend of mine is right, then the highest paid salaried civilian is one Farooq Bengali, currently heading some Arab bank based in Karachi. Bengali’s annual salary package is rumoured to be in the range of Rs. 3 crores per annum.

Considering it took Farooq Bengali years of much lower salaries to get there and the fact he’ll mostly likely get this kind of salary for eight years at the very most – the maximum he can hope to accumulate in his lifetime is Rs 30 crores. This sum equals, according to Dr Siddiqa, an average major general’s net worth. There must be a few dozen of major generals around at any given time, so there ought to much great scope in getting there; after all there is only job available like Farooq Bengali’s, and he is currently occupying it.

Besides, once Farooq Bengali retires he goes home. The same doesn’t apply to our retired generals; they can become provincial governors, federal ministers, ambassadors, heads of one of the numerous Fauji conglomerates or even be in a position to mismanage the Pakistan Cricket Board. Now that is what a richly rewarding career is all about.

Kamran Shafi Calls Army’s Indulgence in the Media `Monkey Business’

Monkey business-military set to expand media outreach across country

by Kamran Shafi

What the devil is going on?

Why is there no reaction from the sitting government, and the leaders of the political parties in the opposition including the self-proclaimed future prime minister of Pakistan Imran Khan; why none from the various spokespeople who regale us with their silly arguments every single evening on the mostly nonsensical TV talk shows; why indeed, have none of the tens of channels picked up on an earth-shaking report in this newspaper of record of April 15, 2012 titled, “Apna Pakistan: Military set to expand media outreach across country“?

We are told that the aim is “social harmonisation” and to propagate “state vision” in a “vibrant manner”. The CEO of 96 International Radio Network, a serving colonel of the Pakistan Army added in an interview to this paper that the “network is being planned to bring social harmony to a society that has been radicalised”.

Really now?

So then, despite the track record of our brass hats in political interventions; even after the recent upheaval in relations between the elected government and the army brass in which the ISPR had the gall to issue direct threats of “serious ramifications” to the PM himself, the de jure boss of the armed forces, the politicians are all right with this ‘media outreach’ by the army?

Leave alone the politicians own, and the country’s interests in containing the army brass to their cantonments and training areas, they should also consider the costs of this ‘outreach’ in terms of what it will do to the revered and respected institution of Radio Pakistan which has done so much for integration by reaching out to the farthest corners of our country; and by encouraging many artistes, especially those from the backward regions of Pakistan.

Indeed, who of my generation doesn’t recall the dulcet tones of Edward Carrapiet and Shaista Zaid announcing ‘This is Radio Pakistan; here is the news read by”. Halcyon days indeed for this great medium on which comedians like Imam Din would take a dig at almost everyone; on which Malik Khuda Bakhsh Bucha would host a programme giving agricultural advice. Radio Pakistan even today is doing yeoman service to the people, especially the poor. How can any government think of killing such an ‘outreach’?

For that is what it is. The bazaar gup is that the baboos of the finance and information ministries are deliberately killing Radio Pakistan by starving it of funds to suck up to the Deep State. It is said that not only has the PBC’s development budget been cut down, even its pay and pension bills are not being paid in full. This is disgraceful and needs urgent review by the government.

But let’s go back to the future wannabe media empire to be run by the Pakistan Army. Might one ask how a serving officer is running FM 96? Is FM 96 an army unit? Is the colonel on ERE (extra regimental employment) there? Does the ARR (Army Rules and Regulations) apply to him and to his assistants who are surely from the army too? Most critically, why does the ISPR not answer any questions about this venture? What’s going on?

Neither is this all. One of the reasons cited for the setting up of this channel is that it will be aimed towards the ‘difficult’ areas. While preliminary research conducted this last week through friends who know Fata says that Radio Pakistan is heard in most of the tribal areas, the question to ask is why FM 96 also wants to set up FM stations in main cities such as Islamabad, Lahore and Karachi? Is this aimed towards making money through advertisements, adding to the army’s business portfolio of bakeries, shaadi ghars and real estate businesses?

Wake up, Prime Minister, and put an immediate stop to this monkey business. Hasn’t this country had enough of the Deep State’s ‘social harmonisation’?

 

Kamran Shafi

What the devil is going on?

Why is there no reaction from the sitting government, and the leaders of the political parties in the opposition including the self-proclaimed future prime minister of Pakistan Imran Khan; why none from the various spokespeople who regale us with their silly arguments every single evening on the mostly nonsensical TV talk shows; why indeed, have none of the tens of channels picked up on an earth-shaking report in this newspaper of record of April 15, 2012 titled, “Apna Pakistan: Military set to expand media outreach across country“?

We are told that the aim is “social harmonisation” and to propagate “state vision” in a “vibrant manner”. The CEO of 96 International Radio Network, a serving colonel of the Pakistan Army added in an interview to this paper that the “network is being planned to bring social harmony to a society that has been radicalised”.

Really now?

So then, despite the track record of our brass hats in political interventions; even after the recent upheaval in relations between the elected government and the army brass in which the ISPR had the gall to issue direct threats of “serious ramifications” to the PM himself, the de jure boss of the armed forces, the politicians are all right with this ‘media outreach’ by the army?

Leave alone the politicians own, and the country’s interests in containing the army brass to their cantonments and training areas, they should also consider the costs of this ‘outreach’ in terms of what it will do to the revered and respected institution of Radio Pakistan which has done so much for integration by reaching out to the farthest corners of our country; and by encouraging many artistes, especially those from the backward regions of Pakistan.

Indeed, who of my generation doesn’t recall the dulcet tones of Edward Carrapiet and Shaista Zaid announcing ‘This is Radio Pakistan; here is the news read by”. Halcyon days indeed for this great medium on which comedians like Imam Din would take a dig at almost everyone; on which Malik Khuda Bakhsh Bucha would host a programme giving agricultural advice. Radio Pakistan even today is doing yeoman service to the people, especially the poor. How can any government think of killing such an ‘outreach’?

For that is what it is. The bazaar gup is that the baboos of the finance and information ministries are deliberately killing Radio Pakistan by starving it of funds to suck up to the Deep State. It is said that not only has the PBC’s development budget been cut down, even its pay and pension bills are not being paid in full. This is disgraceful and needs urgent review by the government.

But let’s go back to the future wannabe media empire to be run by the Pakistan Army. Might one ask how a serving officer is running FM 96? Is FM 96 an army unit? Is the colonel on ERE (extra regimental employment) there? Does the ARR (Army Rules and Regulations) apply to him and to his assistants who are surely from the army too? Most critically, why does the ISPR not answer any questions about this venture? What’s going on?

Neither is this all. One of the reasons cited for the setting up of this channel is that it will be aimed towards the ‘difficult’ areas. While preliminary research conducted this last week through friends who know Fata says that Radio Pakistan is heard in most of the tribal areas, the question to ask is why FM 96 also wants to set up FM stations in main cities such as Islamabad, Lahore and Karachi? Is this aimed towards making money through advertisements, adding to the army’s business portfolio of bakeries, shaadi ghars and real estate businesses?

Wake up, Prime Minister, and put an immediate stop to this monkey business. Hasn’t this country had enough of the Deep State’s ‘social harmonisation’?

The Military Will Have to Review its Policies

by Yousaf Nazar

That Pakistan Army has been humiliated and has failed to control terrorists is stating the obvious. But the question is what needs to be done and where do we start. We seem to be polarized between two extreme narratives, namely, it is all the work of foreign elements AND it is establishment protecting its assets. This has assumed the dimensions of an almost ideological debate. Rationality and Truth are often the casualties of ideology and dogma. These issues have been compounded by agenda-driven journalism.

I am puzzled by 30,000 feet high discussions and more the same motherhood and apple pie TV talks and our failure to ask some elementary questions and take basic steps.

A few basic questions:

1. How two terrorists managed to escape when the PNS Mehran was surrounded by hundreds of security personnel beats me? Maybe the media can start by focusing on tracing the identify of the killed terrorists with full public disclosure of the results and how two managed to escape. There should be a relentless pursuit of hard facts and evidence with full public disclosure. There is no other way to fight the menace except with the full support of the people.

For starters let us encourage the Deep State to look under its own bed. Secondly, never underestimate the Deep State’s brilliance!! I mean, for one, which organisation in its right mind would have done, in recent memory: Jalalabad and Kargil? Which would keep Dawood Ibrahim in its motherly lap?

2. Why don’t our security officials announce on TV that next time a Taliban spokesman calls a media person, that media person should immediately inform the security services on another line or through alternative means so that the call can be monitored and traced. There should not be any protection of “journalistic sources” when it comes to the protection of lives and nabbing terrorists.

3. While the security establishment is widely believed to be protecting the Haqqani network, this does not explain why the groups that are being protected by the establishment, although it is denied strongly, would strike the deep state itself?

4. If the groups striking at our strategic locations are the rogue ones and are not the ones being protected by our establishment, then in how many instances the identities of the perpetrators of crimes were revealed and efforts to track them were successful and made public since 2002? We need a white paper on this. But even before that, does the government have a list of the most wanted? Can it publish that list, if it has one, in all major newspapers? We have had a lot of general discussion and statements but not enough detailed facts. Why?

5. In other countries, whenever such big incidents took place, the leadership came on TV and took the people in confidence, boosted morale, and shared what strategy was being adopted to face the challenge. We are treated with silence except the routine statements like we will fight terror or bizarre statements from Rehman Malik. Yesterday, he said the attackers looked like Star Wars characters? What was that? This cannot be taken seriously anymore.