Pakistan Army’s Contribution to the National Exchequer


Army Welfare Trust (AWT): Rs.1133.288 Million

AWT started with a modest asset base and high ambitions. Today, after 44 years of investments in various fields, we stand out amongst the business leaders. Ours is a story of perseverance, innovation, business acumen and going beyond the frontiers in Insurance, Aviation, CNG, Agriculture, Manufacturing, Sugar, Lubricants, Real Estate, Security Solutions and many other diverse fields. Our investments will go a long way in consolidating the national economy of Pakistan


FAUJI FOUNDATION (Fauji Group): Rs.122249.159 Million

Fauji Foundation (also known as Fauji Group), is amongst the largest business conglomerate in Pakistan which “Earns To Serve” the interests of ex-servicemen.

It is basically a Charitable Trust founded in 1954 for the welfare of the ex-servicemen and their dependents.

It is incorporated under the Charitable Endowments Act 1890.

The history of Fauji Foundation dates back to 1945, when a Post War Services Reconstruction Fund (PWSRF) was established for Indian War Veterans who served the British Crown during WW-II. At the time of partition (1947) when Pakistan came into being, the balance fund was transferred to Pakistan in the proportion of its post WW-II veterans. Till 1953, the fund remained in the custody of the civilian Government, when in 1954 it was transferred to the Army.

The Army instead of disbursing the balance fund of about Rs 18.2 millions (USD 0.2 million) among the beneficiaries, invested it in establishing a Textile Mill. Later from the income of the textile mill, it established first 50 bedded TB hospital at Rawalpindi.

Fauji foundation is proud that from Rs 18.2 million in 1953, it today runs more than 18 industries, the income from which is utilized to serve about 9 million beneficiaries (5 % of country’s population). Generally, more than 80 percent of the income goes towards the welfare activities every year.

The welfare is conducted through health care, education and vocational/technical training. To a limited extent welfare is also a by- product of employment generated for the beneficiaries through commercial and welfare activities. Presently, the welfare is conducted through 115 medical facilities, 100 Schools & Colleges, 65 Vocational Training Centers and 9 Technical Training Centers.


Frontier Works Organization (FWO): Rs. 689.169 Million

Frontier Works Organisation (FWO), today’s most versatile and vibrant construction firm, was established on 31 October 1966 to wrought a miracle and carve out a modern highway, the Karakoram Highway, across crags and crevices of the highest mountain ranges of the world. It was towards the completion stage of KKH that the Government analyzed the tremendous potential of FWO in carrying out civil engineering projects in difficult and inhospitable areas and decided not only to keep FWO in existence, but also to expand its tentacles throughout the country.

 FWO History

For the last 48 years FWO has left its imprints, bringing prosperity to utterly backward and forgotten areas from the sun burnt plateaus of Baluchistan to lush green dales of Swat and Chitral and from the deserts of Sindh to snow capped Siachin. Over these years FWO has worked in diversified fields to include development of communication infrastructure like construction of roads, railway lines and airfields; irrigation like construction of dams, canals and barrages; power projects like thermal and hydal; tunneling and mining; telecommunication; construction of residential and industrial infrastructure and proved its unmatched qualitative and quantitative capabilities.

In 1991, FWO was called upon to participate in the reconstruction phase of Kuwait, after the Gulf war, and given to clear 3000 square kilometers of highly mined area, littered with large quantity of ammunition left behind by the withdrawing Iraqi Army. FWO cleared the area in a record time of just 16 months, ahead of others construction forms of USA, UK, France, Egypt and Bangladesh. Similarly, in 2006, FWO constructed a road from Torkham to Jalalabad in the most hostile and difficulty security environment.

With professionally qualified and competent staff, efficient work force, flexible organisation and a large pool of modern construction equipment and machinery FWO is capable of undertaking any construction assignment at short notice anywhere in Pakistan or abroad. FWO, motto ‘Striving for Excellence’ amply speaks of the continued efforts to deliver the best.


Canteen Stores Department (CSD): Rs. 492.741 Million

Canteen Stores Department (‘CSD’) is a chain of retail stores run by the Pakistani Ministry of Defence, and has a presence in all major military Cantonments operated by the Pakistan Armed Forces. CSD sells a wide variety of products like household provisions, kitchen appliances, cars, sports equipment, computers, toiletries and textiles items exclusively for active and retired members of the Armed Forces. Generally, these goods are procured by CSD in bulk, and sold at concessional rates, compared with retail prices

National Logistics Cell: Rs. 539.742 Million

In 1978, a massive congestion at Karachi Port brought Pakistan’s logistics cycle to a grinding halt resulting in severe shortage of essential commodities in various parts of the Country. The crisis warranted urgent measures to restore normalcy. The Government decided to establish a dedicated Organization to manage the crisis at hand and avert logistics emergencies in future. The compelling circumstances thus gave birth to an Organization that was destined to play a major role in the National development.

The Government named the Organization as National Logistics Cell (NLC). Since its inception, NLC has made remarkable progress and has been evolved into Pakistan’s premier logistics and construction Organization performing diversified roles and significantly contributing to the growth of National economy. A cursory analysis of the development trajectory and the steady expansion of NLC in terms of human and material resources is suffice to bear out the high standards and professionalism maintained by the Organization. Initially raised to handle logistics crisis, NLC as of today, has grown into Pakistan’s one of the largest and self-sustaining public sector enterprise that carries out overarching and co-related tasks ranging from construction of mega structures in shortest possible time, to providing pragmatic logistics solutions, management of a chain of well-equipped dry ports & border terminals, collection of toll revenue on National and provincial highways alongside highest possible efficiency and skill development of the Country’s rich human resource capital.

AWT:                                                  Rs.1133.288
Fauji Fdn:                                          Rs.122249.159
FWO:                                                  Rs. 689.169
CSD:                                                   Rs. 492.741
NLC:                                                   Rs. 539.742

Total Direct Contribution:           Rs.125,104.099 Million

Indirect contribution

Special Packages to include
UNRA Coalition Support Fund Saudi Gt etc etc.

Rs.16953.89 Million

Normal Budget Taxes.

Rs. 16301.45 Million

Total Indirect contribution

                                                           Rs.3255.34 Million

Total Direct & indirect contribution:

                                                           Rs.158,359.439 Million ( Rs. 158.4 billion)

Over all return vary between 35 to 50 percent of the total Defence Budget.
Auth : Pak Army Budget Directorate.