One common misconception is that only the Army is allowed to have the Fauji Foundation and that no civil department can take care of their retired personnel. However, this is not true.
In fact, many government departments have their own foundations such as the Police Foundation, FBR Foundation, Punjab Govt Employees Foundation, and many others that take care of their retired employees.
The Fauji Foundation, in particular, has a transparent system of self-sustainability that has been key to its success. However, Govt. frees Army Welfare Trust from income tax. The price of products includes sales tax and there is no income tax, which is a major concern for other business owners. Additionally, there is a perceived monopoly in the market and heavy subsidies, such as Fauji Fertilizers receiving gas at 13% of the buying or import cost. Those interested in learning more about the situation can ask Nestle officials about porridge or read “Military Inc.”
