A Blessing For Pakistan: Fauji Foundation

92 Lakh Pakistanis benefit off of this welfare system.

Fauji Foundation is one of the largest business and energy corporation in Pakistan and you would have popularly heard its name in the fertilizer, food, cement industries, along with gas exploration, power generation, LPG marketing and distribution, financial services, employment services, and security services.

It was founded in 1954, once the government of Pakistan had decided to transfer the money gathered by the compensatory funds Pakistan had received by the ‘British Army Fund’ in 1947 to help the war veterans from British India after World War 1. They had initially given Rs.18.2 Million (which in today’s currency rate would be equivalent to USD. 18 Million.) to Pakistan which had remained completely untapped till 1953. This year, as the Pakistani army was in control of this much amount of money, they very perceptively, decided to start a business and invest the money rather than distributing the money amongst the general public.

Now this ingenious decision that was made back in 1953, led to the creation of the Fauji Foundation in 1954 and is currently able to benefit around 92 Lakh Pakistanis, who are majorly the families of retired or injured servicemen, or the families of on service soldiers. The idea of our army was to set up up an ongoing welfare system that was efficiently monitored, functioned and owned by the army for army personnel, rather than relying on civilian budget for its purposes.
Now, the army has been successful in increasing the value of the fund from the previous 18 Million USD to the current 20 Billion USD, this highlights the growth by 1000 times, which is a huge success and was only possible due to the immense hard work and struggle of those respectable personalities  who fully understood the struggles and requirements of retired and injured soldiers and their families.

The foundation helps in providing cheap and feasible housing to army personnel, such that every retired military personnel owns at least a house or a piece of land.  The welfare also helps provide free medical and free or subsidized education of the children of ex or on-duty servicemen, it also takes care of placing the servicemen in decent areas, when they aren’t deployed in far off areas.
Fauji Foundation is able to generate its money from several business ventures in Pakistan and abroad, it is looked over by retired military officers.

The efficiency of this welfare system can be judged by comparing it to the law Ayub Khan made in 1969, which allowed the Pakistan Railway board of directors to set up a welfare fund for railway employees. Though his law still exists, in the Pakistani legislation as the ‘West Pakistan Railway Servants Welfare fund Ordinance 1969’, it was never really put into effect. Moreover, a National Police Foundation was established in 1975, yet they did not do anything for the policemen and heir families and till today are a failed organisation.


We have always depended highly on our army and have put it on the spotlight, however being a democracy, we should focus more on the other departments that make this country a democracy, such as the government and police and should try to make their projects more efficient and effective. The railway and Police department should strive to improve their system and work properly to make the existing system functional so that Pakistan can develop and benefit even more.