The late 1990s and early 2000s marked a time of considerable flux for Pakistan's political and economic landscape. Governments rose and fell. Sanctions and reforms alternated in a dizzying pace. In the midst of this unpredictability, one thing remained constant—the Dewan Group's ambition to grow, and its increasingly evident knack for forging political alliances that could facilitate its industrial ascent.
The Early Political Connections
Dewan Mushtaq Group had always maintained ties with government institutions to stay relevant. But it was during the era of Prime Minister Nawaz Sharif (1997–1999) that these relationships began to deepen. The government's emphasis on privatization and industrial growth opened doors for industrialists willing to invest and create jobs.
At a luncheon hosted at the Islamabad Club, Yousuf Dewan sat across from then Finance Minister Ishaq Dar. Other industrialists were also present, but Yousuf had a different agenda.
Yousuf Dewan (softly, during a pause): "Dar Sahib, we have expansion plans in mind—not just autos and cement, but textiles, energy, even banking. But we need consistent policy and some assurance of government support."
Ishaq Dar: "Yousuf bhai, the Prime Minister supports businessmen who invest in Pakistan's future. Submit your proposals through BOI (Board of Investment). You'll have our backing, as long as it aligns with national interest."
That conversation led to a series of government-backed clearances that helped Dewan Group accelerate investments, particularly in Dewan Cement, where they acquired Pakland Cement and Saadi Cement under the privatization drive.
Navigating Military Rule
The military coup of 1999 brought General Pervez Musharraf to power. The political winds shifted, but Dewan Group adapted swiftly. The Musharraf regime encouraged foreign investment and industrial development, especially in infrastructure and telecom sectors.
One key meeting in Karachi changed Dewan's trajectory. It was held at Governor House, attended by military officials, technocrats, and leading industrialists.
Governor Sindh, Muhammadmian Soomro: "We need reliable partners for rebuilding infrastructure. Cement will be in demand. Who here can double capacity in under 12 months?"
Yousuf Dewan (raising his hand): "Dewan Cement can meet that challenge, with the right support on import duties and clearance times."
Lt. Gen. (R) Khalid Maqbool: "Bring us a plan. If it holds, we'll greenlight your proposals through FBR and Port Qasim Authority."
Dewan Cement fast-tracked machinery imports, expanded its Hattar and Karachi plants, and secured government contracts for infrastructure projects linked to the National Highway Authority.
Political Patronage and the Banking Sector
In 2001, Dewan Group acquired Pakland Cement, and then Pak Industrial and Commercial Leasing (PICL)—a step into banking and financial services. These moves required delicate handling of regulatory approvals and connections with State Bank of Pakistan.
A dinner at the Serena Hotel, Islamabad, brought together Shaukat Aziz, then Finance Minister, and top-tier businessmen.
Shaukat Aziz (to Yousuf): "You've made bold acquisitions. But with them comes responsibility. We can't afford any NPLs (non-performing loans) flooding the sector again."
Yousuf Dewan: "We're restructuring. We aim to make PICL a bridge between manufacturing and small-scale investors. Let us show you a working model."
Yousuf's promise materialized into Dewan Financial Services, which would later become instrumental in funding SME-based projects, especially in Sindh and Punjab. Dewan's narrative shifted—from industrialist to economic facilitator.
Political Lobbying and Power Circles
Behind the scenes, Dewan Group invested heavily in relationship-building with political leaders from both major parties—PML-N and PPP. They contributed to development funds, sponsored educational initiatives, and maintained close contact with local MNAs and MPAs across Karachi, Lahore, and interior Sindh.
A particularly strategic alliance was with Dr. Asim Hussain, a key confidant of President Asif Ali Zardari during the PPP tenure (2008–2013).
Dr. Asim (during a private meeting in Clifton): "Yousuf bhai, energy and healthcare are priorities for us. You've got experience in power and manufacturing. Let's talk partnerships."
Yousuf Dewan: "We're ready. If there's land and support for logistics, we can establish a power project in Jamshoro and even support your medical university with construction material at cost."
This resulted in Dewan Group being awarded government contracts for infrastructure around Ziauddin University and discussions around a proposed IPP (Independent Power Plant) that never fully materialized but gained them strategic goodwill.
Public-Private Partnerships
In 2005–2007, the government introduced the Public-Private Partnership (PPP) framework, opening new doors for industrialists to join hands with state entities in power, ports, and transportation.
Dewan Group proposed a logistics corridor project involving trucking and cement distribution from Karachi to upcountry via a dedicated supply chain.
Planning Commission Member (during Islamabad briefing): "You want exclusive corridor rights?"
Dewan Logistics Head: "Not exclusive—priority handling. We will invest in 400 trucks and 3 warehouse hubs across Pakistan."
Although the full project didn't materialize, the discussions established Dewan Group as a forward-looking corporate entity, willing to align with national development goals.
Maintaining Influence During Turbulence
With changing governments came challenges. During the 2007–2009 economic slowdown, the Group faced liquidity constraints. But political relationships helped secure bridge loans from state banks and tax reliefs, keeping operations afloat.
At a press interaction in 2008, a journalist asked:
Journalist: "Is Dewan Group too close to the government? Your loans and privileges have raised eyebrows."
Yousuf Dewan (calmly): "We operate within the laws. Yes, we build relationships. But our record is clear—we pay taxes, create jobs, and contribute to the economy. That's our answer to any skepticism."
Conclusion
Chapter 19 captures the nuanced interplay of politics and business in the rise of Dewan Group. Through strategic lobbying, calculated alliances, and constant dialogue with policymakers, the Group not only expanded its footprint but secured resilience during volatile times. The line between power and enterprise blurred—but for Dewan, it became the key to sustained growth.