That reality was once again underscored last week when Fauji Fertiliser Company Limited (FFC)—a Fauji Foundation flagship—quietly joined a consortium led by Arif Habib Limited shortly after it won the bid for a 75 percent stake in Pakistan International Airlines (PIA). Ironically, FFC itself had withdrawn from the bidding process at the last moment, reportedly to avoid accusations of collusive practices if rival bidders joined hands post-auction. The manoeuvre revealed the deep interlinkages between Pakistan’s military-owned businesses and civilian corporate players—often operating in the shadows.
At the same time, Pakistan’s debt-strapped government is reportedly opening the doors for the United Arab Emirates to acquire a stake worth nearly $1 billion in the Fauji Foundation, while Abu Dhabi is expected to roll over $2 billion in loans. For a country perpetually on IMF lifelines, this signals something stark: even as ordinary Pakistanis grapple with inflation and unemployment, the military’s corporate empire remains insulated, bankable, and attractive to foreign capital.
A Welfare Trust That Became a Business Colossus
Established in 1952 as a charitable trust under the Charitable Endowments Act of 1889, the Fauji Foundation was originally meant to support widows and families of World War II veterans. It began with a modest paid-up capital of just $3.6 million—funds provided by the British colonial administration.
Fast forward to 2025, and the foundation has morphed into Pakistan’s largest business group, controlling at least 25 listed and unlisted companies. According to the Economic Policy & Business Development Think Tank’s Wealth Perception Index 2025, the Fauji Foundation now boasts a net worth of $5.9 billion, making it the single biggest commercial entity in the country.
While the foundation claims that nearly 80 percent of its profits are reinvested into welfare and social protection programmes, independent experts estimate the real figure to be closer to 5 percent—raising uncomfortable questions about transparency and intent.
Fingers in Every Profitable Pie
From fertilisers, cement, power generation and banking to cereals, meat processing, real estate, ports and stock investments, the Fauji Foundation’s reach is nearly omnipresent. Its key revenue drivers include Askari Bank, Mari Petroleum, and Fauji Fertiliser, alongside unlisted ventures like Fauji Meat and Foundation Gas.
In the energy sector, Foundation Wind Energy and FFC Energy Limited have expanded renewable capacity, while Fauji Oil Terminal handles millions of metric tonnes annually. The foundation also maintains strategic joint ventures abroad, including Pakistan Maroc Phosphore in Morocco, and partnerships with global firms like Cargill for marine terminals.
Its involvement in the China-Pakistan Economic Corridor (CPEC) further highlights how military-linked firms routinely bag strategic contracts—often bypassing civilian competition. Fauji Fertiliser Bin Qasim (FFBL) has partnered with Chinese companies in coal and LNG-linked power projects, while other Fauji-linked entities dominate supply, logistics and construction tied to CPEC.
A State Within a State
The Fauji Foundation does not operate in isolation. It works alongside the Navy’s Bahria Foundation and the Air Force’s Shaheen Foundation, each running extensive commercial operations. Add to that the Army Welfare Trust and the Defence Housing Authority, and Pakistan’s military effectively emerges as the country’s largest landowner, developer, and industrial stakeholder.
Pakistani military scholar Ayesha Siddiqa, author of Military Inc, has long warned that these “welfare foundations” collectively run businesses worth tens of billions of dollars. She has estimated that the military controls up to one-third of Pakistan’s heavy manufacturing sector and around 7 percent of private assets—figures that dwarf civilian oversight.
Indian strategic analyst A. B. Shivane has gone further, alleging links between the Fauji Foundation’s opaque networks and money laundering and narco-terror financing, while estimating that the Pakistani military controls nearly $50 billion of the country’s $400 billion economy.
The Real Cost
While Pakistan’s generals preach austerity to civilians and blame politicians for economic mismanagement, the Fauji Foundation tells a different story—of an army that profits regardless of national hardship. What began as a welfare initiative has evolved into a corporate empire with minimal accountability, operating parallel to the state it claims to serve.
In effect, Pakistan’s economy is not just militarised—it is monetised by its armed forces. And as long as the gun continues to guard the balance sheet, meaningful civilian reform may remain little more than an illusion.
