(Muskan Moazzam)
The economy of Pakistan is going through a tumultuous era. Recently, it touched an abysmally low point however, the good news is that after slightly protracted period of cataclysm, all major economic indicators have started to show the signs of recovery. For the revival of economy, current Government and Pakistan Armed Forces are working hand in glove. Pakistan Army, as experienced of running welfare institutions is contributing towards national economy. Army Welfare Institutions like Fauji Foundation, National Logistics Corporation (NLC), Frontier Works Organization (FWO), Defence Housing Authority (DHAs) are major contributors. It seems that such misconceptions are deliberately spread to tarnish the image of Army. Some of the myths, which are often held include that Army welfare institutions work mostly on Government provided funds and taxpayers’ money, which is untrue. If a fair and closer look is given, we learn that Army institutions are contributing towards health of national economy.
Saying that institutions run by Army are funded through public money and the common man is paying for institutions is nothing but a blatant lie. The system of Army Welfare Institutions (AWI) was established as a sequel to the partition of 1947, when assets of the British were divided between Army of India and Pakistan. The leadership of Pakistan Army at that time, considered it prudent to channel some of the resources into Army welfare institutions to benefits its soldiers.
Contrary to the perception that AWIs are tax-exempt organisations, these institutions are significant revenue earners for the government of Pakistan. For example, the Fauji Foundation, one of the biggest business groups in Pakistan, has paid significant amount of taxes in the recent past. As per the latest financial reports, Fauji Foundation has paid taxes of Rs. 223 billion. During the financial year 2020/21, Fauji Foundation made a tax payment of Rs. 150 billion, whereas it has contributed to the tune of Rs.1 trillion to national exchequer, in the last several years. Likewise, Defence Housing Authority (DHA) has been a major taxpayer. As per recent updates, DHA added Rs. 23 billion to the national exchequer.
Army Welfare Institutions are one of the largest employers in Pakistan. Fauji Foundation has its own network of businesses and industries, which afford direct employment to tens of thousands of people. These jobs include technical, managerial, as well as skilled and unskilled workers.
Both NLC and FWO are involved in employment generation. The NLC, which is involved in the management of huge logistics activities, has thousands of drivers, logistics managers, and other employees. The FWO, which is involved in large construction and infrastructural projects, recruits’ engineers, technicians, and labourers. These employment opportunities not only help in the reduction of unemployment rate but also play a role in enhancement of workforce in Pakistan.
Army Welfare Institutions have made a great impact in the development of infrastructure. The FWO and NLC are involved in implementing most of infrastructure projects such as roads, bridges, tunnels, including urban development projects. Such projects are vital for the economic growth.
The FWO has been instrumental in building some of the most strategic facilities in Pakistan including Karakoram Highway (KKH) and a network of Motorway across the country. These projects not only encourage domestic business and transport but also improve the trade linkswith neighbouring countries.
Similarly, NLC is managing the transport and supply chain of products in the country and abroad. NLC’s efforts ensure that the supply chain in Pakistan is kept running to support businesses and deliver goods on time. These activities are not funded by the Government or the taxpayers’ money but are financed by the revenues earned by the activities themselves. NLC has to its credit, shipment and commodities to countries including Russia, China, Turkiye and central Asian countries.
To this end, it remains crucial to dispel the myths and shun the wrong notion that exists about AWIs as being affiliated with the military and funded by the Government. Indeed, these organizations are legally recognized as separate entities that operate in the market and generate revenue. They earn their income from business undertakings and contribute to the Government’s coffers through taxes, and reinvest their profits to expand their business. The revenues that these institutions earn, are reinvested into welfare initiatives such as health, education, and accommodation of martyr’s families.
Army Welfare Institutions such as Fauji Foundation, NLC, FWO and DHA are important players in boosting the economy of Pakistan. These are equally significant being regular and sizeable tax payers, afford employment opportunities and ensure provision of infrastructure. Such organizations are mostly private organizations that do not depend on Government support and funding but are funded by their business activities. These contributions make it possible to understand that the propaganda against these institutions is purported. As for their contributions to the economic development of Pakistan, they are quite meaningful and worthy of appreciation.
The author hails from Defence & Strategic Studies fold of Quaid e-Azam University, Islamabad. She has been associated with National Defence University, MoFA, National Assembly of Pakistan, PEMRA and think-tank ISSI.
Comments are closed.