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Pakistan’s military establishment biggest business group: UNDP

Pakistan Ka Beta

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Pakistan’s military establishment biggest business group: UNDP
Pakistan’s richest 1% hold almost a tenth of its total income


SAMAA | Samaa Money - Posted: Apr 15, 2021 | Last Updated: 2 days ago


Pakistan’s military establishment biggest business group: UNDP

Pakistan Army Chief General Qamar Javed Bajwa stands before the start of the Pakistan Day parade in Islamabad on March 23. AFP



Pakistan’s military establishment represents the largest conglomerate of business entities in the country, reveals a United Nations Development Programme report called ‘The three Ps of inequality: Power, People, and Policy‘.
The report said that Pakistan’s military enjoyed Rs257 billion in privileges in 2017-18 and it is the country’s biggest urban real estate developer and manager, with wide-ranging involvement in the construction of public projects.
The military’s business activities are essentially run through two entities, the Fauji Foundation (FF) and the Army Welfare Trust (AWF), with high net profits and rapid growth.
The military’s Defence Housing Authorities (DHAs) also enjoy significant privileges in terms of federal sales tax exemptions and the earmarking of property tax, which goes solely to cantonment boards.
The report’s biggest takeaway, however, is the damning statistic that Pakistan’s elite – the top 1% of its population – has 9% of the country’s total personal income.
“The average income of high net-worth households is six times the income of an average Pakistani household,” the report said. “Despite this, high net worth individuals evade taxes worth Rs168 billion.”
The report highlighted the stark contrast between the elite rich and powerful and the underprivileged. The extensive study quantified the privileges such tax benefits the country elite and powerful groups such as feudal landowners were attracting.
The poorest 20% of the nation hold 7% of the national income while the richest 20% have 50% of the national income.
The elite also enjoy substantial concessions, such as tax credit provisions which reduce their personal income tax liability, and the separation of taxes into different types of income (from securities, shares, and bank deposits, etc.) reduces the progressivity of the tax system.
Progressive taxation is a tax system in which tax increases with an increase in income. For instance, if a person pays 10% in income tax on Rs100,000 of their income then another person with a higher income, say Rs200,000,. will be paying higher than 10%.
“Overall, in 2017–2018, high net worth individuals in Pakistan enjoyed privileges totaling Rs368 billion,” it added.
Pakistan’s feudal elite owns nearly quarter of country’s farm area
Pakistan’s feudal elite, which constitute just 1.1% of the country’s population, owns 22% of its farm area, the UNDP report revealed.
“They have disproportionate access to political representation in the National and provincial assemblies, enabling them to safeguard the tax benefits and special concessions they are granted,” the report said.
These benefits include favoured tax treatment for agricultural income and land revenues, low irrigation water charges despite Pakistan’s water-stressed status, preferential access to bank credit, and subsidies for fertilizers and the provision of electricity for tube wells.
“Overall, in 2017–2018, Pakistan’s feudal class enjoyed privileges totaling Rs370 billion,” it added.
Corporate sector enjoys privileges over Rs724 billion
The corporate sector encompasses Pakistan’s growing number of business owners and shareholders. Businesspersons are often members of federal and provincial cabinets.
“Moreover, large associations and embassies protect the interests of multinational corporations that operate in the country,” the report said.
“Overall, the corporate sector benefits from a host of privileges, such as the recent reduction of corporate tax on profits, the withdrawal of the Super Tax (meant for the extremely wealthy), and industry-specific concessions such as lower sales tax rates on production and sales, exorbitant import duties, and more.”
Overall, in 2017–2018, Pakistan’s corporate sector enjoyed privileges totaling Rs724 billion.
How to improve equality: Social movement?
UNDP Assistant Secretary-General Kanni Wignaraja, in an interview to Al Jazeera, says she wishes that there were a strong intent to review things like the current tax and subsidy policies, to look at land and capital access.
Wignaraja said that it will almost need a ‘social movement’ to displace structures of power that are deep-rooted.
In a country like Pakistan, where the military continues to hold power over many aspects of governance, she warned that it would take almost a social movement to displace structures of power that were so entrenched, Al Jazeera quoted her as saying.
“I’m very clear that we can provide the analytics, we can put the impartial story out there and then it is up to the country, both the state and the people to say: ‘Enough, here is how we need to take break up these strongly-held power groups and dynamics in this country.’”

money has no father no son :lol:
LOL look at wealth distribution around the world. Only a handful of elite hold the vast majority of wealth. Are we going to propose a social movement i.e. Arab spring for all nations around the world?

What is wrong when the Pak army is generating revenue through business? Can anyone explain the sin here? As long as taxes are paid nothing wrong.

I can agree with the rest where fuedals and elites are sucking the common man dry. There needs to be accountability as far as tax payment is concerned. This needs to be done across the board.

View attachment 734915


Surprise. Kanni is an Indian.
Fauji Foundation and Army Welfare Trust are
1) Created by Army's own money from British Raj's Pension money
2) are for welfare of retired and shaheeds

I dont see anything wrong here... What I see wrong is that they are given exemption.. which they shouldn't be to maintain the competition.. not only them but any institution from Army to Police even Wapda..

And lastly 9% is no surprise neither is it a huge stat.. indian 1% control 73% of indian wealth

Ba

Bahi g the OP has problem with everything in Pakistan 😀 from Pakistan’s Islamic ideology to Pakistan’s army 😆
It it wasn't for the farsightedness, Pakistan army men and para military would have been facing the same ordeal.



Language , singling out Pakistan Army in whole Pakistan and Social movement are unnecessary . Doesn't seem impartial or UN report to say the least .
 

Sine Nomine

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so? it's called the military industrial complex & every powerful nation has its military involved in economics & business one way or another. nothing new.
No it's no MIC,MIC is a term which is strictly related to those Corporations who produce military equipment or provide services in field of defence affairs.
Equating this with MIC is an insult to LM,Boeing,Academi and organisations like them.
 

Sheikh Rauf

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how about american private contractors how about india is worls biggest illeagle uranium market, everyone is doing what hey can this 1% in Pakistan lost their lives to bring life back in cities of Pakistan. we need to bring money back from our bureaucracy and politicians, yes we have people from military who are super rich which we dont know how but 100 politicians then why not 1 officer from arrmy 10 from civil bureaucracy 1000 from business men and then trickle down with more multiplies.
 

313ghazi

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LOL look at wealth distribution around the world. Only a handful of elite hold the vast majority of wealth. Are we going to propose a social movement i.e. Arab spring for all nations around the world?

What is wrong when the Pak army is generating revenue through business? Can anyone explain the sin here? As long as taxes are paid nothing wrong.

I can agree with the rest where fuedals and elites are sucking the common man dry. There needs to be accountability as far as tax payment is concerned. This needs to be done across the board.

View attachment 734915


Surprise. Kanni is an Indian.

She's Sri Lankan. I posted a thread on her report, if you redd it you'll understand the problem. Basically they're able to get access to government land and money to run thier businesses whilst the average person cannot have access to that land or that money or the favourable tax rates or coerce politicians to provide tax exemptions.
 

waz

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This is well known and you find this shocking in 2021?

and than people say Pakistanis don't pay taxes, it's the rich feudal elite class which doesn't pay taxes, instead they also get big favors from govts ---

and our dear army establishment is no innocent, they are most responsible for the destruction of Pakistani state.

No it's shocking that in 2021 no movement has been made in ending this, even after 70 years.
The army establishment isn't responsible for the "destruction of Pakistani state". They're the only thing that held it together in modern years, yes they have shortcomingS as well. But without them Pakistan's people and land would be enslaved quickly by the Indians.
 
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khail007

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She's Sri Lankan. I posted a thread on her report, if you redd it you'll understand the problem. Basically they're able to get access to government land and money to run thier businesses whilst the average person cannot have access to that land or that money or the favourable tax rates or coerce politicians to provide tax exemptions.

If you are talking about Pakistan Armed Forces, partially correct for land and some relaxation on taxes. Just compare the case of CSD and USP, both organisatons have some tax relaxation from government; here may be USP have access to subsidised rates but CSD have some relaxation on GST.
So the privilege for both, civilians as well as armed forces.
We as Pakistanis needs to understand who is victimising our armed forces and why? What are the invested evil interests of them.
If you are follower of some political thieves/corrupts than it is another story; definitely blindly supporting the narrative of the party rather than analysing the ground realities.
 

313ghazi

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If you are talking about Pakistan Armed Forces, partially correct for land and some relaxation on taxes. Just compare the case of CSD and USP, both organisatons have some tax relaxation from government; here may be USP have access to subsidised rates but CSD have some relaxation on GST.
So the privilege for both, civilians as well as armed forces.
We as Pakistanis needs to understand who is victimising our armed forces and why? What are the invested evil interests of them.
If you are follower of some political thieves/corrupts than it is another story; definitely blindly supporting the narrative of the party rather than analysing the ground realities.

Bro - Read the report I posted, it's 300 pages long and about inequality in Pakistan. Armed forces are mentioned only in a few paragraphs. The premise of the report is that the wealthy elite get favourable treatment due to thier connections with people in power and influence. This treatment directly and indirectly takes money out of the stomachs of the poor to feed the rich.

An example it gave was the low tax rates on agriculture and how many big landowners sit in Parliament.
Here is the topic I posted about the full report.


@khail007
 
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TheSnakeEatingMarkhur

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Of course that was very wise of them,nation is forever indebted to wisdom of those wise men.

Please cut this idiotic crap,Pakistani Defence forces are maintained,trained,paid,fed and equipped by Government of Pakistan using TAX it collects from public.
Nation ka to pta nai retired and shaheedo ki families are indebted to that..

And yes while in service they are fed by 11 billion dollar budget from govt but the amount above that comes from other sources be it exports of weapons or other sources I dont believe armed forces are doing so well with a budget which is lesser than even Iran or Afghanistan..

And I for sure know that after retirement a large part of pension is paid by Fauji foundation and govt only pays a small part...
 

shah_123

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No it's shocking that in 2021 no movement has been made in ending this, even after 70 years.
The army establishment isn't responsible for the "destruction of Pakistani state". They're the only thing that held it together in modern years, yes they have shortcoming as well. But without them Pakistan's people and land would be enslaved quickly by the Indians.
Yes they are, if not more, they are equally responsible --- they have mostly ruled (directly or indirectly) over Pakistan, so they have to take responsibility.
 

waz

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Yes they are, if not more, they are equally responsible --- they have mostly ruled (directly or indirectly) over Pakistan, so they have to take responsibility.

No they're not.
Ok if they weren't there, how would have Pakistan faired?
 

shah_123

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No they're not.
Ok if they weren't there, how would have Pakistan faired?
No they're not.
Ok if they weren't there, how would have Pakistan faired?
They will have to be there, if there's no Pakistan, there will be no perks privileges anymore.

We don't need rocket science to understand this -- you are the head of a failed organization, whose responsible, you or someone from jungles in Africa?

They are fully responsible for where Pakistan stands today, they have directly ruled and indirectly supported trashes to rule over Pakistan.
 

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