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Azad_ Kashmiri

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Excellent article:


When you assist the military in creating an air of invincibility by using fallen soldiers as a shield, you empower bad actors to take advantage of that invincibility to do as they wish. When corrupt people are let off the hook for whatever reason, they believe they can repeat their actions, and they have.

Over the years, the Pakistani military has involved itself in everything but defense.

Large parts of the military budget go towards construction projects, welfare, media enterprises, land holdings, businesses, commercial enterprises, and various other ventures. In no well-developed country in the world will you find a military that functions like a conglomerate.

You might believe that the military is providing valuable assistance where the government falls short, but this perception is misguided. Consider, for instance, when the military constructs a school in your neighborhood. Where does the funding come from? It comes from the budget allocation, sourced from taxes, just like the government's funds. In such cases, why not allocate those resources to the government, allowing them to manage such projects? The military's involvement in government affairs surpasses its intended role and demonstrates a concerning level of influence over non-defense-related matters. This is just one example of the military's influence; there are more significant instances where it directly impacts politics.

You may think the government is inefficient with its resources and that the military does a better job.

Once again, this is incorrect. In the 20th century, the biggest lesson learned from industrialization was delegation. Every entity focuses on what they are best at, and it all runs together like a well-oiled machine. The military's involvement in numerous industries disperses its focus and efficiency, rendering it a 'jack of all trades but master of none!

Foreign affairs should be handled by the Ministry of Foreign Affairs, not the military. Education should be the responsibility of the Ministry of Education, and so on. These ministries should be given the budgets that the military has taken to expand its influence and present a favorable image. The military is no less prone to corruption than the government; there are no adequate checks in place to prevent corruption, just like in the government. The only advantage the military has over the government is its financial resources and influence.

Criticizing the military does not automatically equate to being anti-military; it is possible to express concerns and offer constructive feedback.

Similarly, holding the government accountable through criticism does not make you a separatist; it reflects a desire for positive change and progress.

When people shield the military from criticism, we end up in this situation. When Imran Khan criticizes the army, there's no need to get offended. He isn't anti-military; he simply wants change. The military should focus on its duties and allow the other ministries to focus on theirs. This inefficient machine is showing its limitations, and it can't continue to operate without repairs; otherwise, it's heading toward self-imposed destruction.

And on the government, I find it interesting to come across news articles speaking of how Pakistan is falling behind in the race for Al, Blockchain, Web 3, etc. It confuses me that Pakistan is so invested in the 4th industrial revolution when it still hasn't learned or applied any principles of the previous revolutions. You can't just magically skip to step 4 when you've only half-applied the previous 3 steps.

The foundations of progress don't exist, and yet we dream of flying cars.

Do you know what we are? We are like little children easily distracted from the bigger picture. When the military or government announces a small project, we get excited. However, it should concern you that the government is trying so hard to publicize a small project. In developed countries, similar projects are announced by specific ministries and local leaders, not the prime minister or general himself. Initializing projects isn't the government's primary job; its primary job is to create a perfect environment for projects to succeed. The government formulates policies to ensure the funding of projects is well-utilized, the correct projects receive funding, the right amount of money is allocated, international and domestic standards are met, and domestic standards are established. These cheap tricks of project announcements are detrimental. The focus should be on policies. Without a framework for development, it's as if the country is wandering in the dark with no clear path or direction. Everything becomes short-term.

I've seen the PMLN manifesto and instead of convincing the public of their ideas and listing their plans and policies they instead brag about past achievements. They have no vision of the future they only care about the present and past and they will continue to live in it.
 
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I dunno man, I think if there is no way to get rid of the law of jungle in this nation, might as well stop trying. There is no way any civilian group can face the Tanks and guns. Its probaly better to live with it and get rid of courts and national assembly, all ineffective drama wasting tax payers money. One COAS one nation that follows his command and then perhaps we can begin to grow economically and in the HDI index.
This back and fourth is wasting precious time and resources. Stalin was kinda like a military dictator and look where he took the Soviets.
 
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Consider, for instance, when the military constructs a school in your neighborhood. Where does the funding come from? It comes from the budget allocation, sourced from taxes, just like the government's funds.

Wellllll not exactly.

Military budgeting is a very complex machine, as far as these budgets go.

The revenues from the AWT and FF, somewhere in the food chain, get blurred with those provided in the federal budget. It gets waaayyy murkier the more you go down this rabbit hole. Just as an example. A certain AD unit runs a small market in a city which shall not be named. There are a fair few shops in that market, ranging from a grocery mart, to telecom shops, and a couple of medical clinics. The rent from this market goes straight to the unit itself. The market is on A1 land. This particular piece of land was cut out from the unit grounds and exposed to the road. On the other side of the wall at the back, you can still see parked dhayi tons and other unit equipment if you peek high enough.

Example 2, there is a market in a certain city in South Punjab. The revenue of rent from the whole market goes to the Corps HQ. The Corps HQ has no business running a commercial enterprise on A1 land.

Pindi and Lahore are basically all A1 land being used commercially.

This is in a way a good thing as well, that these businesses allow the army to not be as dependent on federal budget as it technically should be. And this is exactly the argument that the 'Army should maintain these businesses' crowd puts forward. Don't know how old you are to the forum, but there used to be a think tank by the name of Xeric. You can probably find his articles in the archives as well. He explained the budgeting process from the lens of the army. The rehab projects in Chaman, or the water scheme in Badin, or the school in some village near Parachinar, that is constructed using precisely these grey funds.

Secondly, another aspect that is often neglected of the these enterprises is their contribution to the Pakistani economy.

Like it or not, FF and AWT provide MAJOR employment and revenue sources for the country. FF fertilizer, FF foods, polymer, Mari gas, and so on provide a sizeable chunk of the GDP and also tax income to the state. You cannot just shut these organizations down. Completely removing the influence of the army in our government would mean restructuring these organizations. You have serving 3 star officers sitting in the boards of these organizations. You have DG ISPR as board member PTV FFS. QMG, AG, I think even CGS in one or two organizations sits on the board of organizations.

What business does the CGS have as a board member?

So, in short, major corporate restructuring is a critical part of the whole 'reducing the influence of the establishment', and that is why it is so complex, apart from the obvious political aspect of it all.

Other members can explain this in more detail if they want to... @RescueRanger @SQ8 @blain2
 
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Wellllll not exactly.

Military budgeting is a very complex machine, as far as these budgets go.

The revenues from the AWT and FF, somewhere in the food chain, get blurred with those provided in the federal budget. It gets waaayyy murkier the more you go down this rabbit hole. Just as an example. A certain AD unit runs a small market in a city. There are a fair few shops in that market, ranging from a grocery mart, to telecom shops, and a couple of medical clinics. The rent from this market goes straight to the unit itself. The market is on A1 land.

Example 2, there is a market in a certain city in South Punjab. The revenue of rent from the whole market goes to the Corps HQ. The Corps HQ has no business running a commercial enterprise on A1 land.

Pindi and Lahore are basically all A1 land being used commercially.

This is in a way a good thing as well, that these business allow the army to not be as dependent on federal budget as it technically should be. And this is exactly the argument that the 'Army should maintain these businesses' crowd puts forward.

Secondly, another aspect that is often neglected of the these enterprises is their contribution to the Pakistani economy.

Like it or not, FF and AWT provide MAJOR employment and revenue sources for the country. FF fertilizer, FF foods, polymer, Mari gas, and so on provide a sizeable chunk of the GDP and also tax income to the state. You cannot just shut these organizations down. Completely removing the influence of the army in our government would mean restructuring these organizations. You have serving 3 star officers sitting in the boards of these organizations. You have DG ISPR as board member PTV FFS. QMG, AG, I think even CGS in one or two organizations sits on the board of organizations.

What business does the CGS have as a board member?

So, in short, major corporate restructuring is a critical part of the whole 'reducing the influence of the establishment', and that is why it is so complex, apart from the obvious political aspect of it all.

Other members can explain this in more detail if they want to... @RescueRanger @SQ8 @blain2
You have explained this very well my brother.
 
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@Jango . I really don't understand why these democratic govts are " extremely" lame. They can't run a few million dollars project efficiently. They have to involve army to achieve goals . And that's how the system works and suits ... All mega project should be given to Army and govt ask them basic cut to buy some luxury goodies, like V8s and bungalows. oo forget the citizen, they don't need welfares or jobs .. if get sick go to nearest mazar and duwa ...and live on the will of Allah. Everything in Pakistan is " Allah ki marzi".


Govt revises decision to promote solar projects​

Allows Fauji Foundation to acquire $4.9m stake in power plant



Our CorrespondentJanuary 18, 2023


workers clean panels at a solar park in modhera india s first round the clock solar powered village in the western state of gujarat india october 19 2022 reuters

Workers clean panels at a solar park in Modhera, India's first round-the-clock solar-powered village, in the western state of Gujarat, India, October 19, 2022. REUTERS

ISLAMABAD:
The government on Tuesday amended a policy in favour of Fauji Foundation to facilitate the acquisition of a stake in a power plant while revising its earlier decision to promote solar projects.
The decision was taken by Finance Minister Ishaq Dar-led Economic Coordination Committee (ECC) of the cabinet.
The ECC allowed equity investment of $4.9 million by Fauji Foundation for the acquisition of 2.75 million shares (18.64% stake) in Daharki Power Holdings Limited.
According to the Ministry of Finance, the ECC also waived and exempted Fauji Foundation from the policy enumerated in the Foreign Exchange Manual being incorporated as a trust under the Charitable Endowment Act 1980, according to the Ministry of Finance.
The Finance Division presented a summary as the government allowed Fauji Foundation to make an equity investment of $12 million abroad in Daharki Power Holdings in 2008.
Fauji Foundation, the Asian Development Bank and Daharki Power Holdings, BVI entered into an agreement in 2008, which provided the ADB the right to exercise put option concerning the 2.75 million shares subscribed by it.
However, the State Bank of Pakistan (SBP) was of the view that the existing foreign exchange policy did not allow the investment and it had to be amended.
The SBP believes that as per the Foreign Exchange Manual, Fauji Fertiliser being incorporated as a trust under the Charitable Endowment Act 1980 does not meet the policy requirement and will require ECC’s approval to waive the policy provision.
“The cumulative investment of Fauji Foundation in Daharki Power Holdings Limited exceeded the $10 million limit and stood at $16.9 million, which also required approval of the ECC,” the central bank added.
Daharki Power owns Foundation Power Company Daharki Limited (FPCDL). It has a total installed capacity of 186 megawatts and is a base load plant with 100% dispatch because of its dedicated domestic gas field and resulting low tariff.
The Power Division submitted a summary for amendments in the Standardised Security Package Documents (SPDs) for the large solar PV projects.
“The ECC, after discussion, approved the proposals that indexation of tariff in the SPDs is on an annual basis and payment mechanism for the settlement of invoices as per framework guidelines,” said the Ministry of Finance.
The federal cabinet’s approved framework guidelines state that “70% of the overall tariff will be indexed quarterly with exchange rate variation”.
Moreover, in addition to the government guarantees, payments under the energy purchase agreement will be ensured in “60 days after invoice” through bank debit from the dedicated solar account.
However, the ECC in November 2022, while approving the energy purchase agreement and implementation agreement for large-scale solar PV projects, approved a new payment mechanism proposed under the security package agreements for the settlement of invoices through the bank from a dedicated solar account to be maintained by the purchaser be deleted and replaced with the standard payment mechanism given under the earlier ECC approved agreements.
It also approved that the tariff would be indexed annually rather than on a quarterly basis on rate variation. The decisions of the ECC were subsequently ratified by the federal cabinet.
The Power Division had proposed that changes made in the SPDs would be reverted to the extent of indexation and payment mechanism for making the initiative successful.
The suggestion was given based on market response to the said modifications by the ECC and to ensure viability of the project.
Now, the ECC has linked the indexation quarterly and agreed that the payment mechanism for the settlement of invoices will be through bank debit from a dedicated solar account to be maintained by the purchaser and be included in the security package agreements.
The Ministry of Commerce tabled a summary on the import of agricultural tractors under the Kissan Package 2022 and proposed amendments in the Import Policy Order 2022 to reduce the cost of tractors.
The ECC after deliberation approved the proposals of the commerce ministry and allowed amendment in the relevant clause of IPO 2022 for the import of up to five-year-old tractors.
Regarding duty reduction for the import of secondhand tractors, the ECC allowed depreciation at 2% per month up to a maximum of 60% as already provided.
The ECC considered and approved a summary submitted by the Ministry of Commerce on policy regarding business-to-business barter trade mechanisms, especially where banking channels were absent and generally to facilitate trade with other countries.
The ECC also approved a supplementary grant of Rs300 million in favour of the Ministry of Energy (Power Division) for expenditures on development projects under PSDP being executed by Peshawar Electric Supply Company during the current financial year.
Published in The Express Tribune, January 18th, 2023.
Like
Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
 
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base load plant with 100% dispatch because of its dedicated domestic gas field and resulting low tariff.

Oh you mean because Foundation Power is a military run company, and it has a preferential agreement with Mari petroleum which has the largest gas reserves (or second, been a while since I've been away from the field).

And guess who owns Mari!

And also guess what the concessional tax rates are for these companies.

If you have a complete hold over the economic supply chain, from fuel supply to distribution, and also reduced tax rates, then how the heck would you not be immensely profitable and have a 100% dispatch rate?

I used to remember when I went to the Mari field or stayed over at the Mari plant (Daharki one), the production engineers and all would throw a fit if supply to FF or the power plant went offline. If it went offline to Engro, they wouldn't show that much of a concern! :P

Ok now enough, I don't want a Vigo at my home :P
 
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Oh you mean because Foundation Power is a military run company, and it has a preferential agreement with Mari petroleum which has the largest gas reserves (or second, been a while since I've been away from the field).

And guess who owns Mari!

And also guess what the concessional tax rates are for these companies.

If you have a complete hold over the economic supply chain, from fuel supply to distribution, and also reduced tax rates, then how the heck would you not be immensely profitable and have a 100% dispatch rate?

I used to remember when I went to the Mari field or stayed over at the Mari plant, the production engineers and all would throw a fit if supply to FF or the power plant went offline. If it went offline to Engro, they wouldn't show that much of a concern! :P

Ok now enough, I don't want a Vigo at my home :P
Sir, you catch the real substance between the lines.. and how much loss, now you can assess.

 
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@Jango . I really don't understand why these democratic govts are " extremely" lame. They can't run a few million dollars project efficiently. They have to involve army to achieve goals . And that's how the system works and suits ... All mega project should be given to Army and govt ask them basic cut to buy some luxury goodies, like V8s and bungalows. oo forget the citizen, they don't need welfares or jobs .. if get sick go to nearest mazar and duwa ...and live on the will of Allah. Everything in Pakistan is " Allah ki marzi".

I haven't read the whole book myself, but just read a snippet once. I suggest you read it, Military Inc. by Ayesha Siddiqa.

It goes into the origins of FWO and NLC and all.

It is precisely as you explained.

During the eras of martial law (during the early years of Pakistan), we did not have public governmental organizations to undertake various tasks, such as road construction or transport etc. Instead of inviting the private sector, or establishing a civilian organization, the dictators of that time used the army to get the job done.

On paper, it was the right thing to do. You need a solution, fast. You needed trained manpower, fast. You needed execution, fast. All things that the army does extremely well. So you created those organizations. Now once the initial job was done, some wise fellow had an idea to use them for commercial purposes, and hence you have FWO bidding on almost all the tenders of the country and NLC having a stranglehold on cross country transportation, and not letting the railways flourish. This is the number one complaint of railway officials in meetings FYI.

So, instead of creating a civilian organization, our dictators created military counterparts, and those companies then just sustained and have grown into the behemoths we have today. Now, they are too big to fail, like the US banks in 2008 (you get the idea).

I am more surprised why the great minds in our military did not go for creating a Fauji IT or Fauji Computer Services? Considering the business acument of our generals, this company could have been a big player on the world stage. This would have brought them actual USD from abroad, with minimal running costs. But I guess for creating an IT company you need to get out of the thekedari mindset.

The more you read into this stuff, and go past the usual surface level gutter politics on display these days, the more you will hold your head in your hands and think what the fck have done to this country.
 
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I haven't read the whole book myself, but just read a snippet once. I suggest you read it, Military Inc. by Ayesha Siddiqa.

It goes into the origins of FWO and NLC and all.

It is precisely as you explained.

During the eras of martial law (during the early years of Pakistan), we did not have public governmental organizations to undertake various tasks, such as road construction or transport etc. Instead of inviting the private sector, or establishing a civilian organization, the dictators of that time used the army to get the job done.

On paper, it was the right thing to do. You need a solution, fast. You needed trained manpower, fast. You needed execution, fast. All things that the army does extremely well. So you created those organizations. Now once the initial job was done, some wise fellow had an idea to use them for commercial purposes, and hence you have FWO bidding on almost all the tenders of the country and NLC having a stranglehold on cross country transportation, and not letting the railways flourish. This is the number one complaint of railway officials in meetings FYI.

So, instead of creating a civilian organization, our dictators created military counterparts, and those companies then just sustained and have grown into the behemoths we have today. Now, they are too big to fail, like the US banks in 2008 (you get the idea).

The more you read into this stuff, and go past the usual surface level gutter politics on display these days, the more you will hold your head in your hands and think what the fck have done to this country.
Longtime ago , in the same forum, some respectable member covered the whole scam of National Logistic Cell. ....loll... but that time we had diehard romance with the institution and gave him shutup call .....lolll.... NLC was Dollar mint during Afghan war and Zia era. But I will check this book. A reason why Aisha Siddiqa end up in UK...
 
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I haven't read the whole book myself, but just read a snippet once. I suggest you read it, Military Inc. by Ayesha Siddiqa.

It goes into the origins of FWO and NLC and all.

It is precisely as you explained.

During the eras of martial law (during the early years of Pakistan), we did not have public governmental organizations to undertake various tasks, such as road construction or transport etc. Instead of inviting the private sector, or establishing a civilian organization, the dictators of that time used the army to get the job done.

On paper, it was the right thing to do. You need a solution, fast. You needed trained manpower, fast. You needed execution, fast. All things that the army does extremely well. So you created those organizations. Now once the initial job was done, some wise fellow had an idea to use them for commercial purposes, and hence you have FWO bidding on almost all the tenders of the country and NLC having a stranglehold on cross country transportation, and not letting the railways flourish. This is the number one complaint of railway officials in meetings FYI.

So, instead of creating a civilian organization, our dictators created military counterparts, and those companies then just sustained and have grown into the behemoths we have today. Now, they are too big to fail, like the US banks in 2008 (you get the idea).

The more you read into this stuff, and go past the usual surface level gutter politics on display these days, the more you will hold your head in your hands and think what the fck have done to this country.

So in another words, we have a state within a state, that deep state has its own economy, funding etc.
 
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Wellllll not exactly.

Military budgeting is a very complex machine, as far as these budgets go.

The revenues from the AWT and FF, somewhere in the food chain, get blurred with those provided in the federal budget. It gets waaayyy murkier the more you go down this rabbit hole. Just as an example. A certain AD unit runs a small market in a city. There are a fair few shops in that market, ranging from a grocery mart, to telecom shops, and a couple of medical clinics. The rent from this market goes straight to the unit itself. The market is on A1 land.

Example 2, there is a market in a certain city in South Punjab. The revenue of rent from the whole market goes to the Corps HQ. The Corps HQ has no business running a commercial enterprise on A1 land.

Pindi and Lahore are basically all A1 land being used commercially.

This is in a way a good thing as well, that these businesses allow the army to not be as dependent on federal budget as it technically should be. And this is exactly the argument that the 'Army should maintain these businesses' crowd puts forward. Don't know how old you are to the forum, but there used to be a think tank by the name of Xeric. You can probably find his articles in the archives as well. He explained the budgeting process from the lens of the army. The rehab projects in Chaman, or the water scheme in Badin, or the school in some village near Parachinar, that is constructed using precisely these grey funds.

Secondly, another aspect that is often neglected of the these enterprises is their contribution to the Pakistani economy.

Like it or not, FF and AWT provide MAJOR employment and revenue sources for the country. FF fertilizer, FF foods, polymer, Mari gas, and so on provide a sizeable chunk of the GDP and also tax income to the state. You cannot just shut these organizations down. Completely removing the influence of the army in our government would mean restructuring these organizations. You have serving 3 star officers sitting in the boards of these organizations. You have DG ISPR as board member PTV FFS. QMG, AG, I think even CGS in one or two organizations sits on the board of organizations.

What business does the CGS have as a board member?

So, in short, major corporate restructuring is a critical part of the whole 'reducing the influence of the establishment', and that is why it is so complex, apart from the obvious political aspect of it all.

Other members can explain this in more detail if they want to... @RescueRanger @SQ8 @blain2

is it why we started to hear « Sir Bajwa » and « make peace » and luv « with india » few months ago ? To protect their businesses ?
Is an army which focus on business can still properly fight when there is no other option ?
 
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Longtime ago , in the same forum, some respectable member covered the whole scam of National Logistic Cell. ....loll... but that time we had diehard romance with the institution and gave him shutup call .....lolll.... NLC was Dollar mint during Afghan war and Zia era. But I will check this book. A reason why Aisha Siddiqa end up in UK...

Well for me, I knew about this all before, but I honestly thought that this is not the most pressing problem this country has, and we should tackle this later on.

After all, the army does take 'some' welfare projects on too.

But now I have realized, that actually reigning in this behemoth is actually something very high on the priority scale, and this will keep on continuing to create problems for us.

Oh well, guess life is all about learning.

So in another words, we have a state within a state, that deep state has its own economy, funding etc.

Not a wrong way to depict things.

is it why we started to hear « Sir Bajwa » and « make peace » and luv « with india » few months ago ? To protect their businesses ?
Is an army which focus on business can still properly fight when there is no other option ?

Nah there's much more to that equation.

Actually I agreed with Bajwa on this, we do need peace with India. Kashmir issue is long gone from our hands.
 
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Well for me, I knew about this all before, but I honestly thought that this is not the most pressing problem this country has, and we should tackle this later on.

After all, the army does take 'some' welfare projects on too.

But now I have realized, that actually reigning in this behemoth is actually something very high on the priority scale, and this will keep on continuing to create problems for us.

Oh well, guess life is all about learning.



Not a wrong way to depict things.



Nah there's much more to that equation.

Actually I agreed with Bajwa on this, we do need peace with India. Kashmir issue is long gone from our hands.
Well, strategic thinking was never their strong forte and those that had that acumen cannot he allowed to rise above 2 stars so the results were always going to be “hatyaar daal do!”

Lions led by lambs - is the tagline for the Pakistani military
 
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Well, strategic thinking was never their strong forte and those that had that acumen cannot he allowed to rise above 2 stars so the results were always going to be “hatyaar daal do!”

Lions led by lambs - is the tagline for the Pakistani military

Very aptly put.

Maybe the poor ISI Captain or Maj who is reading this post can pitch this idea forward, Fauji IT services....mujhay thori naming royalty hi de dena :P
 
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