The solution of the problem is very simple, the fauj should withdraw from business operations, whether classified as charity or profit-making. Where appropriate, the Fauj-owned businesses to be privatized. Some steps are very easy, while some may take time or may require legislation.
We propose the following steps:
- The State Bank of Pakistan should stop issuing loan guarantees to future projects.
- The government stops the practice of bailing out struggling fauji companies. (Army Welfare Trust (AWT) was bailed out in 2001)
- Cantonment Boards to be amalgamated with nearby towns.
- Control of the fauj-controlled charities to be taken over for the interim, replacing active service officers in the management role. A review of assets will be made, and a plan to dispose of various businesses. Privatization will be with utmost clarity and facts and figures will be available online.
- Proceeds of privatization will remain in the charities and will be for exclusive use for the benefit of retired servicemen.
- The government shall administer benefits of ex-servicemen using money collected in the charities.