The year was 2008, and Pakistan stood at the edge of a cliff. The assassination of Benazir Bhutto just months earlier had shaken the entire nation, and the subsequent elections brought the Pakistan People's Party (PPP) into power under Asif Ali Zardari's leadership. For Pakistan's fragile economy and its most ambitious business empires, including the Dewan Group, this was not just a political shift but a tidal wave that would redraw alliances, expose weaknesses, and entangle corporate leaders in a storm of conspiracies.
In Karachi, inside the marble halls of the Sindh Club, the businessmen of the city whispered over their evening drinks. The Dewan brothers were a frequent subject of discussion—once hailed as visionaries who had brought Hyundai cars and state-of-the-art industries into Pakistan, they now stood accused of overleveraging themselves, entangled in loans that ran into billions. Yet what most outsiders did not know was that the Group's fate was deeply intertwined with the changing political winds.
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Scene 1: A Nervous Meeting
Inside the Dewan House boardroom at the Karachi office, Dewan Yousuf Farooqui sat across from his younger brother, Dewan Salman, and a handful of senior executives. The atmosphere was thick with unease. On the table lay newspapers with headlines about rising inflation, an impending balance-of-payments crisis, and talk of IMF negotiations.
Dewan Yousuf (sternly):
"We cannot deny it anymore—the political climate has turned against us. The Zardari government will not give us the same protection we enjoyed under Musharraf. Look at what's happening—their ministers are already favoring Arif Habib and Mansha over us."
Dewan Salman (leaning forward):
"Bhai, but we supported them during the elections. I personally arranged meetings in Karachi, mobilized support in Sindh. Have they forgotten?"
Executive Director (cautiously):
"Sir, with due respect, loyalty in politics does not last long. The PPP is under pressure from multiple sides—Washington, IMF, local industrialists. They need quick money and partners they can fully control. You have too much independence for their liking."
The words hung in the room like a dark omen.
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Scene 2: A Political Whisper
Later that evening, in Islamabad's Serena Hotel, an off-the-record dinner was hosted by a senior PPP minister. Around the table sat key figures from the banking and business world: Mian Muhammad Mansha of Nishat Group, Arif Habib, and a rising powerbroker, Malik Riaz of Bahria Town.
PPP Minister (raising his glass):
"Gentlemen, times have changed. We need partners who can deliver liquidity and help us manage the IMF talks. Some groups are overexposed, unable to sustain their borrowing. We cannot carry deadweight."
Mansha (smiling confidently):
"My banks are stable. MCB is ready to support the government's initiatives. If needed, we can even arrange bridge financing."
Arif Habib (nodding):
"And my securities firm will keep the markets stable—as long as we get the right signals."
The Minister turned to the table with a knowing smile.
PPP Minister:
"There are others who are… shall we say… liabilities. The Dewans, for example. Too much debt, too much exposure. They grew too fast. Perhaps it's time for their space to be taken over."
Malik Riaz smirked, sipping his tea.
Malik Riaz:
"In politics, when an empire weakens, jackals gather. The Dewans may have had their time, but now the future belongs to those who can feed the government's needs. I'll take their land deals any day."
The laughter that followed was low but deadly.
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Scene 3: Banking Conspiracies
Behind closed doors, Pakistan's banks began tightening the noose. At Habib Bank Limited, an internal memo circulated in May 2008 warned senior management to reassess exposure to the Dewan Group.
Leaked Memo – HBL Credit Division (2008):
> "The Dewan Group's current liabilities far exceed their short-term assets. Their auto division is incurring monthly losses due to falling demand, and repayment schedules are being routinely missed. Given the new government's lack of interest in extending political cover, we recommend halting fresh disbursements and classifying outstanding loans as 'at risk.'"
At National Bank of Pakistan, whispers grew louder. Political pressure was mounting to recover "non-performing loans" from politically unfavored groups.
In one tense meeting at NBP's Karachi headquarters, a senior official openly expressed the conspiracy:
NBP Executive:
"Mark my words. This isn't about economics. It's politics. The government has given us a list—support their allies, squeeze their rivals. The Dewans are on the second list. Make sure every branch manager knows it."
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Scene 4: Family Tensions
Back at Dewan House, the strain was visible. Yousuf and Salman argued late into the night about their strategy.
Salman (angrily):
"You want us to sit quietly while they choke us? We need to fight back—mobilize our allies in Sindh, reach out to MQM, maybe even Nawaz Sharif's people. We can't let the PPP bury us alive!"
Yousuf (calm but firm):
"Do not forget, Salman, we owe billions to these banks. If they shut their doors, no political ally can save us. Our reputation is already damaged in the press—stories of defaults, corruption, mismanagement. We must protect what is left."
The argument spiraled into a shouting match, a reflection of the cracks not just in the Group's empire but in the family itself.
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Scene 5: The Media Attack
In June 2008, Dawn and Business Recorder published damning articles about the Dewan Group's financial troubles. The reports quoted "anonymous banking officials" who described the Group as "a textbook case of overexpansion."
Inside Geo News' Karachi office, a producer whispered to his anchor:
Producer:
"Word is, this campaign is being fueled by rivals—Mansha's people and some insiders from the State Bank. They want to destroy Dewans' credibility so no one will lend them a rupee."
The anchor nodded grimly.
Anchor:
"Then we frame it as systemic. The fall of Dewans as a lesson for reckless business empires. That will keep the advertisers happy."
The Dewans woke up to headlines branding them reckless, greedy, and politically isolated.
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Scene 6: The Conspiracy Widens
In Islamabad, a closed-door meeting between Finance Minister Shaukat Tarin (who took office in 2008) and senior bankers sealed the Dewans' fate further.
Tarin:
"Gentlemen, the IMF wants accountability. We must show progress in recovering bad loans. If we go after the politically exposed, it will strengthen our credibility."
Banker:
"But Minister, if we squeeze too hard, we risk collapsing entire industries."
Tarin (coldly):
"Better a few industries collapse than the entire country default. Dewans will be an example. Write them off if you must, but send a message—there are no sacred cows anymore."
The words were chilling, and within weeks, banks accelerated their recovery suits against the Group.
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Scene 7: A Desperate Gambit
In one last attempt, Yousuf traveled to Dubai to meet potential investors. Over dinner with a UAE-based Sheikh who had once shown interest in the Group's cement plants, Yousuf pleaded his case.
Yousuf (earnestly):
"Sheikh Sahib, Pakistan is in turmoil, yes, but this is temporary. Our cement division alone could bring you massive returns. Help us restructure, and we can both benefit."
The Sheikh shook his head.
Sheikh:
"I am sorry, Dewan Sahib. My advisors tell me your government has already decided your fate. Investing in your group now would be like pouring water into the desert. You should protect your personal wealth while you can."
Yousuf returned to Karachi empty-handed, his heart heavy.
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Scene 8: The Final Blow
By the end of 2008, Dewan Motors had stopped assembling cars. The cement plants operated below capacity. Banks filed recovery suits worth billions in the Sindh High Court. And in drawing rooms across Karachi, rivals celebrated.
One evening, inside the Clifton mansion of a rival industrialist, a toast was raised.
Industrialist:
"To political winds! They giveth and they taketh away. Today, the Dewans fall. Tomorrow, it could be us. But tonight—we drink to survival."
Laughter erupted, but not all were convinced. Some whispered that destroying the Dewans was shortsighted—that Pakistan needed industrial families like them. But in politics and business, short-term victories often outweighed long-term vision.
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Closing Reflections
The Dewan Group's story at this point was no longer just about business. It was about conspiracies hatched in ministerial offices, rivalries fueled by envy, and a political landscape where yesterday's allies became today's executioners. The Group was not yet finished, but the empire that once commanded respect now stood on shaky ground, battered by storms it could not control.
The future was uncertain. The question was not whether the Dewans could survive—but at what cost, and with whose protection.