Organizations

They are government organizations that the army fully or partially controls.  With some, they perform profit-making tasks.  However, there is no clarity on how much profit is made and where it goes.  The following are the controlled entities:

  • Cantonment Boards: These are the legacy of the British Empire. Cantonments were secure areas where British troops resided. After the independence in India, they were amalgamated with the nearest towns, while in Pakistan, they were left with the army.  Thus, the army now has control over large areas of land and residences.  The Fauj has profited from this land.  For example, in this area, a large shopping Centre, the Fortress Square Mall, was built in Lahore.  The land is leased to a private developer.
  • National Logistic Corporation (NLC): It is a government-owned trucking company but under full control of the army. There is no clarity concerning profit and its distribution.  In 2010, a corruption scandal was unearthed that involved two Pakistan Army generals, (Maj Gen Khalid Zaheer Akhtar and Lt Gen Muhammad Afzal), and caused a loss of Rs. 1.8 billion to the company through speculative investments between 2004 and 2008.  In 2015, both of them were convicted by the military court of Pakistan.
  • Frontier Works Organization (FWO): It is a military engineering organization, but is frequently used on profit-making civilian projects. No information is available on profits on a project basis and how they are distributed.
  • Special Communications Organization (SCO): SCO is an organization of the government, and it is under control of the army. Its mandate is to provide communication related services in northern Pakistan.  It has got into electronic banking and money transfer.  No clarity in profitability.
  • Canteen Stores Department (CSD): is a chain of retail stores run by the Pakistani Ministry of Defence, and has a presence in all major military Cantonments operated by the Pakistan Armed Forces. It was established in 1913 by the British.  CSD sells a wide variety of products like household provisions, kitchen appliances, cars, sports equipment. It is equivalent to the commissary run by American Army in support of the troops.