By the year 2012, the Dewan Group's influence had reached heights that many family-owned business empires in Pakistan could only dream of. With manufacturing plants in key industrial sectors, a steady portfolio of export revenue, and the trust of global investors, the Group appeared untouchable. But behind the polished glass of its boardrooms, a storm was beginning to brew — one that would test not just its corporate resilience, but the integrity of its relationships with the country's political machinery.
The Beginnings of Influence
For decades, Pakistan's corporate giants had found it necessary to maintain strong connections with successive governments. Be it to ensure favorable taxation, export subsidies, or regulatory permissions, the political class wielded an invisible but undeniable force over business fortunes. The Dewan Group, known for its relative independence, had nonetheless fostered relationships across the political aisle.
It began with Yousuf Dewan's longstanding friendship with former Prime Minister Shaukat Aziz, which dated back to their mutual engagements in financial sector reforms in the late 1990s. Yousuf had served as a trusted voice in several economic advisory committees during Pervez Musharraf's regime.
But as Pakistan transitioned into democratic rule after the 2008 elections, new political players brought new dynamics — and new demands.
Meetings Behind Closed Doors
In a meeting held in early 2012 at the Sindh Chief Minister House in Karachi, Qaim Ali Shah, then Chief Minister, met with industrial stakeholders.
Qaim Ali Shah: "We want Sindh-based companies like Dewan to lead our provincial development model. But we must ensure alignment — mutual benefit."
Yousuf Dewan (cautious): "Our Group stands ready to invest in Sindh's infrastructure, education, and industrial growth. But we hope policy remains fair and transparent."
Despite diplomatic tones, whispers of behind-the-scenes pressures soon surfaced. Land allotments for Dewan's new auto-assembly plant near Nooriabad were delayed by red tape — unless certain 'favored contractors' were onboarded. Key energy permits for Dewan Cement were being stalled.
It was a silent signal: conform, or face resistance.
The Conspiracy of the Cartel
A confidential memo leaked to The Express Tribune in mid-2012 revealed something more alarming — a coordinated lobbying effort by a business cartel comprising three of Pakistan's largest industrial groups, in tandem with bureaucratic allies from the Federal Board of Revenue (FBR).
Memo Excerpt (Dated May 3, 2012): "Subject: Strategy to limit Dewan Group's growth through regulatory pressure, facilitated by coordination with senior FBR officers and ministry liaisons. Objectives include delaying permits, increasing audit frequency, and inducing operational bottlenecks in logistics and customs clearance."
The names associated with the memo were shocking: the Monnoo Group, a Lahore-based conglomerate with deep political connections; the Nishat Group, led by Mian Muhammad Mansha, known for his power in both banking and textiles; and an unnamed faction within the Habib Group.
All had reasons to be wary of Dewan's rapid ascendancy. Dewan's expansion into auto manufacturing, particularly its rumored negotiations with Hyundai Motors, threatened to undercut established players. Dewan's cement pricing strategy was hurting northern cartel profits. And its independent political stance challenged the usual patron-client framework that empowered other groups.
A High-Stakes Meeting
In August 2012, in a corner office of the State Bank of Pakistan's building in Karachi, Yousuf Dewan met with his trusted advisors — Ali Dewan, former SECP Chairman Khalid Mirza, and Dewan Group's General Counsel, Barrister Ahsan Faruqi.
Ali Dewan: "They've declared war in whispers. Customs delays, FBR notices, harassment from the Environmental Board — all coincidental? I don't think so."
Khalid Mirza: "It's a classic squeeze. Regulatory capture by your rivals. The only defense is evidence — and counter-pressure."
Yousuf Dewan: "We won't play their game. But we will expose it. Barrister Faruqi, file a formal petition with the Competition Commission. Attach that leaked memo. Let the process begin."
Within two weeks, the Competition Commission of Pakistan (CCP) launched a preliminary inquiry.
Media Manipulation
Almost simultaneously, a flurry of negative stories about Dewan began circulating in business media. Anonymous sources hinted at misappropriated loans, aging factories, and underpaid workers — all contradicted by internal audits.
On Geo News, a segment questioned Dewan's solvency.
Anchor: "Is Dewan Group too big to fail — or too big to survive the cracks forming beneath its empire?"
Behind the scenes, sources from Jang Group revealed pressure from advertisers affiliated with rival conglomerates to 'reshape public perception.' It was corporate warfare, waged through headlines.
Government Silence and Strategic Allies
Despite mounting pressure, the central government, led by PPP Prime Minister Yousuf Raza Gilani, remained noncommittal. Publicly, they praised Dewan's role in exports. Privately, they entertained meetings with rival lobbyists.
But Dewan had its own unexpected allies. The Military Logistics Wing, which had worked with Dewan for cement procurement and vehicle fleet contracts, expressed concerns about political interference.
In a discreet meeting at GHQ Rawalpindi, a senior brigadier conveyed support.
Brigadier: "We do not meddle in business. But if political actors think they can undermine national economic contributors with impunity, they are mistaken. Proceed carefully — but know you are not alone."
The Courtroom Showdown
In late 2012, the Sindh High Court summoned key FBR officials in a case filed by Dewan Group. The hearing became a spectacle.
Barrister Faruqi (to the judge): "My lord, the delays and penalties imposed on Dewan Cement, Dewan Motors, and Dewan Textile Mills were not administrative errors. They were calculated — part of a pattern exposed by internal documents."
Judge: "If even half these allegations hold merit, it would suggest systemic abuse of regulatory authority."
The court ordered an independent audit of regulatory actions against Dewan over the past five years.
Whispers in Islamabad
In Islamabad's corridors of power, rumors swirled. Some saw Dewan's legal offensive as a challenge to the status quo — a dangerous precedent. Others admired it.
Ahsan Iqbal (PML-N leader): "This is the first time a conglomerate isn't bowing to pressure. They're taking the battle to the institutions. This will shake things up."
Yet the risks were real. Loans from National Bank of Pakistan were abruptly reclassified as 'high-risk.' Import containers faced increased scrutiny. Unions were allegedly funded to protest at Dewan factories.
But despite the onslaught, Dewan's leadership held firm.
The Revelation
The breakthrough came in January 2013, when a whistleblower from within the Monnoo Group leaked emails that showed coordinated communication with two FBR directors. The emails discussed "timed audit actions" and shared Dewan's shipping data.
The leak was explosive. The News International ran a front-page story:
Headline: "Corporate Conspiracy Exposed: How FBR and Business Cartel Targeted Dewan Group"
The CCP announced a formal inquiry. The Supreme Court took suo moto notice, citing public interest in corporate governance and fair competition.
The Turning Tide
By mid-2013, with PML-N coming to power under Nawaz Sharif, the balance began to shift. The new Finance Minister, Ishaq Dar, known for fiscal discipline, signaled a clean-up.
Ishaq Dar (in a press briefing): "No business should be harassed by regulatory bodies under political or cartel pressure. We will ensure a level playing field."
Meanwhile, the Dewan Group's stocks rebounded. The auto-assembly deal with Hyundai was finalized. Dewan Cement received delayed energy permits. And the FBR officers implicated were suspended.
Conclusion: A War Survived, A Reputation Reinforced
The events of 2012-2013 did more than test Dewan Group's operational mettle — they cemented its ethical leadership. It had stood its ground, resisted manipulation, and exposed corruption. The government connection had nearly broken the Group — but in the end, it only strengthened its legacy.
As Yousuf Dewan told a gathering of young entrepreneurs at IBA Karachi:
"Power is not in proximity to politicians. It is in the integrity to walk away from their games. Build your house not on sand, but on stone. That's how a name survives storms."
......
The air was heavy with tension in the boardroom of Dewan Mushtaq Group, not because of internal strife, but due to what was unraveling in the political and economic corridors of Pakistan. After years of booming business and warm handshakes with high-ranking government officials, it was becoming clear that every favor carried a price. The chapter of unchecked expansion backed by political favoritism was now turning to a page laced with scrutiny, jealousy, and quiet sabotage.
It was 2005, and Dewan Mohammad Yousuf Farooqui, the charismatic and ambitious Chairman of Dewan Group, had begun to notice that doors that once swung open were now being left ajar—or shut altogether. He still had influence, but influence wasn't immunity.
In the Prime Minister's office, whispers of favoritism and selective incentives granted to the Dewan Group had begun to stir debate. The Public Accounts Committee had requested a comprehensive audit of tax incentives given to major industrialists over the past decade. The list was long, but the name Dewan appeared more than most.
Scene: Meeting between Dewan Yousuf and his legal advisor, Salman Shaikh
"Salman, I want you to go over these files again," Yousuf said, tossing a thick folder on the mahogany table. "This inquiry isn't just about policy loopholes anymore—it's about us. They want to make an example."
"Sir, we did everything by the book that was handed to us," Salman replied. "But you know how it works. When enemies start whispering in ears that matter, the book itself gets rewritten."
Backdrop of Real Events:
The Dewan Group had grown in every imaginable sector—automobiles, textiles, cement, sugar, and insurance—largely with state support. Under the Musharraf government, Dewan Yousuf had also served as Federal Minister for Industries and Production. This dual role—industrialist and public servant—blurred lines between governance and corporate interests.
In the corridors of the State Bank of Pakistan, rumors floated that large chunks of loans extended to Dewan's subsidiaries had been fast-tracked. Several competitor groups—most notably the Hashwanis and the Habib Rafiq Group—quietly questioned whether they were being held to different standards.
Scene: A tense dinner meeting at Islamabad Club
Sitting under a canopy of chandeliers, a hush fell over the table as the Finance Secretary joined Dewan Yousuf.
"Yousuf sahab," he said, leaning in, "you should know that the Governor of State Bank is under pressure to review certain disbursements. They're focusing on automotive loans—particularly those routed to Dewan Farooq Motors."
Yousuf paused. "And who's applying the pressure?"
"Let's just say some people think your success story is too convenient to be clean."
Behind this cryptic language were names like Shaukat Aziz and bureaucratic factions who believed that patronage had gone too far. There were murmurs that the Dewan Group was enjoying benefits others were denied—low-interest loans, duty exemptions, and government procurement contracts.
Conspiracy Thread 1: Preferential Licensing
Investigative reports by journalists from The News revealed that Dewan's auto ventures, including the partnership with Hyundai and Kia, had received model-specific licensing ahead of competitors, bypassing standard wait times and inspections. A whistleblower from the Engineering Development Board hinted at "unusual pressure from above" to facilitate the process.
Conspiracy Thread 2: The Land Allotment Game
Documents from Sindh Industrial and Trading Estate (SITE) leaked to Dawn showed that Dewan Group had acquired more than 250 acres at a fraction of the market price. The favor, critics alleged, came during Dewan Yousuf's tenure as Federal Minister, raising questions of conflict of interest.
Scene: Confrontation within the family board meeting
Yousuf's younger cousin, Tariq Farooqui, voiced his concerns.
"Bhai, if we don't slow down and distance ourselves from politics, we will crash. Look what happened to Ittefaq Foundries. Government can turn friend to foe overnight."
"You think I don't know that?" Yousuf shot back. "But we're too big to turn invisible now. They want us down because we've risen too fast. It's envy dressed as justice."
Public Backlash & Media Frenzy:
Talk shows began airing segments with headlines like "Crony Capitalism: Is Dewan the New Ittefaq?"—a stinging reference to the Sharif family's rise and fall during the 90s. Host Mubashir Lucman grilled finance experts on how Dewan Group could receive government tenders while its chairman was also shaping industrial policy.
In a live telecast, Pakistan Tehreek-e-Insaf's Imran Khan mentioned Dewan Group by name, criticizing the nexus of politics and industrial empires. "You cannot serve the people while serving your business at the same time," he declared.
Scene: Yousuf's private call with President Musharraf
"Sir," Yousuf said, trying to hide the edge in his voice, "I have served the country's industry with loyalty. But now, we're being painted as parasites."
Musharraf responded calmly. "Yousuf bhai, the optics are difficult to manage. It's not personal. The media needs a headline, and your name is marketable. Lay low for a while."
The Cost of Favoritism:
Banks tightened credit lines. Vendors began demanding advance payments. Even overseas investors started backing out, fearing reputational risk. The same government that once handed out incentives now ordered compliance inspections. Dewan's empire had hit turbulence.
Scene: Family discussion with the legal and PR team
"We need to issue a strong statement," Salman, the legal advisor, insisted.
"No," Yousuf interrupted. "No denials. We don't want to provoke them. We'll show compliance, openness. Let them dig—there's nothing illegal in how we grew."
Reflection and Turning Point:
The chapter ends with Yousuf standing alone at the Dewan Motors assembly plant, watching the workers prepare another Kia Spectra for dispatch. He sees not just a car, but a symbol—of dreams built, backed, and now questioned.
He turns to his operations manager and says, "They thought favoritism helped us rise. But only we know the price we paid for every inch."
Final Reader Question:
In a country where influence is often the currency of success, can one truly rise on merit alone—or is every story of success inherently tied to power?