From torpedoes to townhouses, Pak's defence procurement mired in commission culture

Pakistan's defence procurement has long been fertile ground for patronage.

- COMMODORE JOHNSON ODAKKAL (RETD) MUMBAI

From luxury submarines to land deals, the line between military strategy and private profit often blur. At the heart of this so-called commission culture, are networks of middlemen—retired officers and contractors who grease their palms and fill their bellies and pockets behind the scenes. As audits have repeatedly noted, big-ticket purchases such as ships, planes, submarines to weaponry, such as missiles, guns and bullets, or torpedoes routinely involve non-transparent pricing and favoured vendors. Alongside weapons, parallel rackets thrive in real estate. The Defence Housing Authority (DHA), for instance, has become a symbol of military-run profiteering. Originally meant to house officers, it now sells luxury plots to civilians and has spawned multiple unfinished townships sold at a premium. It is no coincidence that defence lands and condos seem to accompany major procurement plans, enriching a small elite while leaving the people it was intended for with empty promises, and bureaucratic lines.

THE BROKERED ARMS BAZAAR Middlemen are an open secret in Pakistan's arms trade. Even if the military procures "directly" from foreign governments, a cast of intermediaries often arrange the contracts. These brokers cultivate ties with high-ranking officials, then claim commissions in foreign accounts. The infamous Karachi Affair of the mid-1990s, also known as the Agosta scandal, exposed this machinery. Secret payments estimated at €100-200 million were tied to the Agosta-90B submarine deal with France. The scandal contributed to the downfall of Admiral Mansurul Haq and, more grimly, to the 2002 assassination of French engineers in Karachi. While many such investigations stalled, they have left a legacy wherein defence officers and their subsequent networks expect a cut of major deals.