The Financial Times (FT) has reported on the growing role of Pakistan’s military in shaping the country’s economy, raising concerns among investors and political analysts alike. The military’s increasing involvement spans from canal projects in the country’s agriculture sector to energy contracts and large-scale infrastructure initiatives. The involvement of Pakistan’s armed forces has intensified, especially since the economic crisis of 2023, which saw the country teeter on the brink of default.
The Special Investment Facilitation Council (SIFC), co-led by General Asim Munir, the army chief, is steering several significant projects, including ambitious plans to develop farmland through canal irrigation and exploit natural resources in Pakistan’s northern regions. These projects are seen by some as essential to overcoming bureaucratic hurdles and attracting foreign investment in a country where political instability and inefficient governance have long hampered economic growth.
However, critics argue that the military’s growing influence in both politics and business presents substantial risks. As FT’s coverage highlights, the army has a long history of intervening in Pakistan’s governance, but its economic expansion has led to concerns about the potential for favoritism, economic mismanagement, and a concentration of power in the hands of the military elite. Furthermore, military leaders have been accused of sidelining civilian priorities, which could exacerbate public unrest and deter much-needed foreign investment.
Investors, particularly those in energy and infrastructure, have grown increasingly uneasy with the military’s approach, which includes renegotiating power contracts and taking an active role in managing business dealings. FT sources within Pakistan’s energy sector described negotiations with military officials as “unusual” and potentially damaging to trust in the country’s investment climate.
The growing involvement of the army in Pakistan’s economy has generated protests from both political factions and grassroots movements, particularly in provinces like Sindh, where the military’s water diversion projects are being opposed by local communities. As Pakistan seeks to stabilize its economy, this militarized economic approach could either stabilize the country or, as FT’s experts suggest, lead to deeper internal conflict and deter international business partners wary of growing political repression.
