Islamabad, Sept 1, 2025 — As Pakistan faces rising inflation and unemployment, the country’s army has quietly transformed into one of the largest business conglomerates in the nation. According to a report by the Economic Policy and Business Development (EPBD) Think Tank, released as part of the Wealth Perception Index 2025, military-affiliated companies dominate Pakistan’s top 40 business groups.
Army Controls Billions in Business
The report estimates that by 2025, the Pakistan Army’s business holdings are worth tens of billions of dollars, a striking figure in a country grappling with economic instability. Leading the list is the Fauji Foundation, valued at approximately $5.9 billion, with nine other military-linked companies exceeding $1 billion in value.
Beyond Defense: Diversified Empire
The army’s influence extends far beyond weapons and defense. Organizations like the Fauji Foundation, Army Welfare Trust, and Defense Housing Authority (DHA) operate in sectors including banking, agriculture, manufacturing, real estate, education, and retail. These institutions benefit from tax exemptions, preferential government land, and regulatory advantages, giving them an edge over civilian competitors. Active and retired military officials wield significant control, leaving ordinary business owners struggling to compete.
Poverty Amid Military Spending
While the army expands its economic empire and invests in tanks and fighter jets, Pakistan’s ordinary citizens face deteriorating living conditions. The country’s per capita income in 2025 stands at $6,950, lagging behind neighboring nations. According to the World Bank, 44.7% of Pakistan’s population lives below the poverty line of $4.20 per day, with 16.5% (nearly 40 million people) living in extreme poverty — a sharp rise from 4.9% in previous years.
Comparisons and Context
The Fauji Foundation, valued at around $6 billion, rivals medium-sized Indian firms like Apollo Hospitals and JSW Energy, but remains far smaller than major conglomerates such as HDFC Bank ($145 billion) or the Tata Group ($436 billion). Analysts argue that the army’s growing economic footprint highlights the stark contrast between military wealth and public hardship.
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