Writer’s attack on Forces defies Musharraf ban

June 1, 2007

Zahid Hussain in Islamabad

A new book that claims to expose the Pakistani military’s growing business and commercial interests was launched last night in defiance of an attempt by President Musharraf to suppress it.
As army commanders were preparing to hold a meeting to discuss the country’s growing unrest, speculation was rife that a state of emergency could be declared to bolster General Musharraf’s military-led Government, which is struggling to retain its grip on power.
The book Military Inc: Inside Pakistan’s Military Economy, was written by Ayesha Siddiqa, a defence analyst and a former director of research with the Pakistan Navy. It looks into the military’s business empire, estimated to be worth about £10 billion. This has previously been a taboo subject, and only recently General Musharraf cautioned against any criticism of the Armed Forces.
The Administration told a top club and hotels in the capital not to host the planned launch of the book yesterday. Oxford University Press, its publisher, said that the government-controlled Islamabad Club cancelled the booking of its auditorium for the event without reason. “It’s because the book has something against the military,” Ms Siddiqa said. She managed to launch the book later, at the office of a nongovernmental organisation.
In her book, Ms Siddiqa – who holds a doctorate from King’s College London – revealed that Pakistani Armed Forces have business interests that add up to one of the country’s largest corporate conglomerates. The military controls five “welfare foundations” that run banks, insurance companies and big industries, such as fertiliser and cement.Ms Siddiqa claims that the Pakistani military controls a third of all heavy manufacturing in the country and 7 percent of private assets. These enterprises thrive because of heavy state subsidies. She maintains that its control of politics allows these businesses tax breaks.
The publication of the book evoked instant reaction from the Government. The Associated Press of Pakistan, a government-controlled news agency, said that it was “a plethora of misleading and concocted stories” aimed at giving the military a bad name and creating a rift with the civil sector.
The military’s penetration of the economy has accelerated under General Musharraf’s rule. His military Government has placed some 1,200 active and retired officers in various ministries and state corporations. Analysts said that the President’s decision to hold on to his post as Chief of Staff of the Army had strengthened the military’s economic interests.
One of the spurs for today’s military meeting is the unrest triggered by the suspension of Iftikhar Muhammad Chaudhry, the Chief Justice, on March 9. Demonstrations against his suspension have been transformed into a powerful pro-democracy movement, presenting General Musharraf with the most serious challenge since he seized power in a bloodless coup in 1999.