It may be recalled that during his first term as President, Donald Trump had tweeted on January 1, 2018 that the US had “stupidly given over $33 billion in aid to Pakistan over the last 15 years, and they have given us nothing but lies and deception”. He accused the Pakistani military of providing “safe haven to the terrorists we are looking for in Afghanistan.”
In his second term, Donald Trump has adopted a completely different approach towards Pakistan, a dramatic change from his first term. At the recent Gaza peace summit in Sharm el-Sheikh, Egypt, President Trump publicly referred to General Assim Munir as his “favorite field marshal”. Trump has displayed remarkably warm and friendly relations with the Pakistan army chief. This coincides with a significant change in his earlier stance towards Pakistan and has been highlighted by several recent events and public comments.
Earlier in the year, Trump hosted Munir at the White House on two occasions. On June 18, Trump held an unprecedented lunch meeting with Munir, the first time a US president had hosted Pakistan’s military chief at the White House without the presence of the civilian leadership. later, further On September 25, Trump hosted both Munir and Prime Minister (PM) Shehbaz Sharif, a significant sign of rapid improvement in US-Pakistan relations.
Following the border clash between India and Pakistan in May, Trump praised Munir for acknowledging his role in reducing tensions. Trump said he was “honored” by Munir’s praise and quoted the general as saying he “saved millions of lives” by preventing the escalation of the war. Pakistan nominated Trump for the Nobel Peace Prize after he claimed to broker a ceasefire between India and Pakistan in May 2025. This was part of a larger campaign to appeal to Trump’s personal ego. Pakistan nominated Trump for the award again in October 2025, this time for his role in securing the Gaza ceasefire.
Trump’s personal business interests are certainly playing an important role in shaping his policy towards Pakistan. These interests primarily include cryptocurrency-related ventures and potential deals for rare earth mineral exploration.
There is growing evidence that Trump recognizes the powerful role of Pakistan’s army chief and is leveraging this relationship to advance his financial interests. As Pakistan’s army chief, Munir offers an opportunity for direct bargaining, which fits Trump’s transactional approach to foreign policy.
In April 2025, a finance platform called World Liberty Financial (WLF) signed a letter of intent with the newly formed Pakistan Crypto Council (PCC) to accelerate the integration of blockchain innovation and decentralized finance. The deal-making was reportedly attended by high-profile Pakistani officials including PM Shehbaz Sharif and Army Chief General Asim Munir. Interestingly, WLF is reportedly 60% owned by Donald Trump’s sons, Eric Trump and Donald Trump Jr., as well as his son-in-law, Jared Kushner. Additionally, reports have emerged about possible talks between the Trump Organization and a Pakistani tycoon to develop Trump Tower in Islamabad.
Following Trump’s meeting with Munir on June 18, 2025, his administration announced its intention to help Pakistan develop its untapped oil and mineral reserves. Three months later, in September, Pakistan’s Frontier Works Organization (FWO) signed a $500 million memorandum of understanding (MoU) with Missouri-based US Strategic Metals (USSM). Frontier Works Organization (FWO) is a military-engineering organization of the Pakistan Army that builds infrastructure projects such as highways and tunnels. This is a significant US investment in Pakistan’s critical minerals sector, establishing Pakistan as a new strategic resource supplier to the US.
Pakistan’s main opposition party, Pakistan Tehreek-e-Insaf (PTI), has condemned the agreement, terming it a “secret agreement” and demanding that the government disclose full details. Frontier Works Organization FWO’s involvement has been a major source of controversy. Some commentators see its central role in the deal as a sign of the deep penetration of the Pakistani military into what is essentially the responsibility of the civilian government. Opposition political groups have criticized secret mineral deals with the US, warning that such agreements could “further inflame an already volatile situation”.
These developments indicate how Trump is getting involved in Pakistan’s ‘milbus’ or ‘military occupation’ syndrome. Milbus refers to the military’s vast, unaccountable and non-transparent business empire. This military capital is used for the personal benefit of the leadership of the armed forces but is not recorded in the official defense budget. Milbus provides financial autonomy to the military and increases its interest in maintaining political power.
The term Milbus was used by analyst Ayesha Siddiqa in her 2007 book Military Inc.: Inside Pakistan’s Military EconomyHe estimated that Sena’s business empire at that time was worth at least $20 billion. Recent reports show that this figure has increased significantly.
The foundation of Milbus was laid in the 1960s by Pakistan’s first military ruler Ayub Khan, but it expanded dramatically during the subsequent dictatorship. The military justifies these initiatives as welfare programs for its personnel, but critics say the benefits are disproportionately concentrated among the officer class.
The military’s economic interests extend into almost every sector of the Pakistani economy, making it the country’s largest business group. Milbus operates through different channels: four main military-controlled foundations—Fauji Foundation, Army Welfare Trust, Bahria Foundation and Shaheen Foundation—manage vast business empires. The military runs a wide variety of enterprises, from bakeries, farms and petrol pumps to major industrial plants, banks and insurance companies. It is also directly involved in commercial banks such as Askari Bank, media networks, cement plants and institutional businesses such as the National Logistics Cell (NLC), which manages transportation and toll collection.
Moreover, the Army is a big player in the real estate sector. The Army controls significant, high-value real estate across the country, particularly through the Defense Housing Authority (DHA). Land was often acquired at concessional rates or given for military service. Individual executives receive personal benefits including valuable land and post-retirement business opportunities. The military’s extensive involvement in Pakistan’s economy has led to allegations of widespread corruption and self-enrichment among the top ranks.
Top generals in Pakistan have amassed vast wealth, sparking public outrage and debate over military corruption. The allegations point to lucrative land allocations, military-run businesses and undeclared assets, with several high-profile cases involving senior officials. Journalistic investigations and leaked financial documents such as the Pandora Papers have revealed several Pakistani military generals and their family members who have acquired property and other assets abroad. These revelations have prompted public scrutiny regarding the accumulation of wealth by the military elite in a country facing significant economic challenges.
Several media outlets have claimed that Asim Munir is personally benefiting from his official role. It has been alleged that his personal wealth is increasing due to his position as Army Chief, which is because he oversees a huge military business empire. Munir serves as the CEO of this huge conglomerate and benefits from its profits.
Allegations of corruption and wealth accumulation against Pakistani generals are not new. After leaving office, General Pervez Musharraf lived a long life of luxury in foreign countries, including Dubai and London. Reports indicate that he purchased expensive apartments in London and the United Arab Emirates after his retirement.
Before Asim Munir, General Qamar Bajwa was the Army Chief in Pakistan. A 2022 investigative report by journalist Ahmed Noorani alleged that General Bajwa’s family rapidly acquired significant wealth, including properties abroad, during his tenure as army chief. His predecessor was General Ashfaq Parvez Kayani. The Pandora Papers revealed foreign transactions involving General Kayani’s brothers. Social media and some reports have also claimed that Kayani has property in Australia.
As head of the army’s media wing, General Asim Saleem Bajwa was linked to an extensive business empire in the US, which included several Papa John’s Pizza franchises. Major General Nusrat Naeem, a former Inter-Services Intelligence (ISI) officer Reportedly set up an offshore company in a tax haven soon after his retirement. The military’s business interests often intersect with its political influence, weakening civilian institutions.
The meetings with Trump have provided a diplomatic boost to Pakistan, after an earlier period of strained relations with both the Trump and Biden administrations. These interactions allow Pakistan’s military to project an image of continued relevance on the world stage. Pakistan has offered economic proposals such as trade agreements and possible deals involving its rare earth minerals. These initiatives appeal to Trump’s business interests.
Trump’s renewed talks with Pakistan are being seen as opportunistic and transactional. Pakistan has made itself useful to the US by offering assistance on matters such as critical minerals, potentially taking advantage of it. Pakistan’s military is viewed by Trump as a more reliable means of implementing strategic objectives than its civilian government. The warming of US-Pakistan relations under Trump has created dismay and concern in Indian policy circles, raising doubts about the US’s credibility as a strategic partner. This unpredictability could impact India’s long-term strategy, including its role in the Quad partnership aimed at balancing China’s influence. By prioritizing temporary, transactional gains with Pakistan, Trump’s approach risks damaging the more important, long-term strategic partnership with India.
This article is written by Prabhu Dayal, former Ambassador of New Delhi.
