Pakistan army’s Business Empire Surpasses Private Sector, Fauji Foundation Leads with $5.9 Billion Valuation: Report
Islamabad, September 1, 2025 – A new report reveals the Pakistan military has become the nation’s largest business conglomerate, eclipsing civilian-run enterprises while the country faces economic hardship. The Wealth Perception Index 2025, released by the Economic Policy and Business Advancement Think Tank (EPBD), identifies the fauji Foundation – a military-run entity – as Pakistan’s moast valuable business group, currently assessed at $5.9 billion.
the report details a meaningful military footprint in the Pakistani economy, estimating it’s total business holdings at “tens of billions of dollars annually.” this comes as Pakistan grapples with persistent poverty and relies on International Monetary Fund (IMF) loans.
According to the EPBD index, nine other companies with ties to the military are each valued at over $1 billion.These entities, including the Fauji Foundation, Army Welfare Trust, and Defense Housing Authority (DHA), operate across a diverse range of sectors – banking, agriculture, manufacturing, real estate, education, and retail – benefiting from tax exemptions, preferential access to land, and protections from standard market competition.
“As of 2025, foreign estimates place the military’s business footprint at tens of billions of dollars annually, a staggering sum for a country grappling with persistent poverty and economic crisis,” the report stated.
The growing economic power of the military coincides with worsening economic conditions for ordinary Pakistanis. The Observer reports Pakistan’s per capita income remains stagnant at $6,950, lagging behind regional neighbors. The World Bank’s 2025 data indicates 44.7% of the population lives below a poverty line of $4.20 per day, with 16.5% – approximately 39.8 million people – experiencing extreme poverty, earning less than $3 daily, a significant increase from 4.9% previously.
While the army expands its commercial interests – including continued investment in military hardware like tanks and fighter jets – unemployment rises and incomes shrink for many citizens. The Fauji Foundation’s $5.9 billion valuation is comparable to some mid-sized Indian corporations like Apollo Hospitals or JSW Energy, though substantially smaller than industry giants such as HDFC Bank ($145 billion) or the Tata Group ($436 billion).