The conference hall of the Pakistan Banks' Association in Karachi had seen many tense meetings, but none as charged as the one scheduled on a humid August morning in 2021. On one side sat Yousuf Dewan and his sons, flanked by their lawyers and a few remaining loyal executives. On the other side, representatives of Pakistan's most powerful banks—Habib Bank Limited (HBL), National Bank of Pakistan (NBP), United Bank Limited (UBL), and MCB—sat in rows, files stacked before them like fortifications in a battlefield.
For decades, the Dewan Group had borrowed billions to fuel its expansion in cement, automobiles, textiles, and banking. Now, as defaults accumulated, the family faced the banks not as partners but as creditors demanding answers.
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Scene 1: The Call to Order
Chairman of the PBA meeting (from HBL):
"Gentlemen, thank you for attending. Today's agenda is straightforward: the Dewan Group's restructuring proposals, repayment schedules, and possible liquidation measures. Mr. Yousuf Dewan, the floor is yours."
Yousuf, his voice deep but carrying the weight of exhaustion, leaned forward.
Yousuf Dewan:
"We are not here to deny our obligations. We accept the mistakes, the mismanagement, even the arrogance of growth. But we built industries in this country when no one else dared. We created jobs for thousands. To liquidate us is to erase decades of contribution. We ask for restructuring, not ruin."
The bankers exchanged glances. For them, this was not about nostalgia. It was about numbers.
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Scene 2: The Bankers Respond
NBP Representative:
"Mr. Dewan, our exposure is over PKR 20 billion. This is not charity. These are public deposits. The State Bank is breathing down our necks. How do you expect us to justify further extensions?"
UBL Executive:
"In 2002, we extended grace periods. In 2009, another restructuring. Every time, promises of revival. Every time, defaults. How do we explain this cycle to our shareholders?"
MCB Banker (dryly):
"The real question is—are we negotiating a revival, or simply delaying the inevitable?"
The room thickened with tension.
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Scene 3: Dewan's Counter
Yousuf Dewan:
"You say inevitable. I say premature. Cement prices are recovering; the construction sector is growing under government schemes. Our plants can operate at higher capacity if given breathing space. As for automobiles—yes, DFML stumbled. But demand for commercial vehicles is rising again. We can reintroduce the Shehzore under new licensing agreements."
Son 1:
"We are willing to bring in strategic investors, even sell part of our holdings. But killing the group entirely will hurt creditors too—you will recover pennies on the rupee in liquidation. Work with us, and you recover fully."
The bankers shifted uncomfortably. They knew liquidation rarely yielded clean recoveries. Yet their skepticism ran deep.
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Scene 4: The Private Side Conversations
During a break, in the corridor outside the hall, two bankers whispered.
HBL Executive:
"They're right about liquidation. We'll get scrap value. But politically, can we keep carrying them?"
NBP Officer:
"Politics has already shifted. No one in Islamabad wants to burn capital defending Dewan anymore. Too toxic. The media has painted them as defaulters."
HBL Executive:
"Still, you know how these families operate. They fall, they rise again. If we cut them off completely, and tomorrow a new government favors them, we'll be the ones locked out."
It was the eternal dilemma of Pakistani banking: pragmatism versus politics.
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Scene 5: Return to the Table
The meeting resumed with harsher tones.
UBL Banker:
"Mr. Dewan, we have reviewed your proposals. They are long on optimism, short on guarantees. What collateral do you offer?"
Son 2 (frustrated):
"We have land in Sindh. Properties in Karachi. We can mortgage them."
NBP Representative (skeptical):
"Most already encumbered. You've mortgaged the same assets across multiple loans. We can't accept ghost collateral."
Yousuf Dewan (firmly):
"Then let us agree on equity partnerships. Take shares in our companies. Share the risk, share the reward."
The bankers looked at one another. Equity meant long-term entanglement—a commitment many were reluctant to make with a group whose reputation was so battered.
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Scene 6: Government Shadows
Though no minister sat at the table, the presence of politics was unmistakable. A rumor circulated that a senior PTI figure had privately urged banks not to let Dewan collapse completely—fearing job losses in Hyderabad would spark unrest. Another rumor suggested rivals like Lucky Cement were lobbying for Dewan's liquidation to remove a competitor.
During lunch, an NBP banker whispered to his UBL colleague:
"You know this isn't just about money. This is about who wins influence. If we cut them off, Lucky gains. If we keep them alive, maybe one day we regret it."
The colleague smirked:
"In Pakistan, regret is part of every loan."
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Scene 7: The Family Dispute
That evening, back at Dewan House, the family gathered.
Son 1 (optimistic):
"We must hold firm. If we show weakness, they will push for liquidation."
Son 2 (angry):
"Hold firm? We're drowning! Every month interest piles up. Better to cut losses—sell cement, sell land, salvage dignity."
Yousuf Dewan (slamming the table):
"Dignity is not in selling. It is in fighting. The Dewan name cannot end like this."
Silence followed. For the younger generation, the weight of the name was no longer an asset—it was a burden.
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Scene 8: Mediation Attempts
Weeks later, the State Bank convened a meeting to mediate.
State Bank Official:
"Gentlemen, Pakistan cannot afford large-scale industrial collapse. The Dewans are not the only defaulters—others have restructured and survived. We propose a consortium approach. Extend maturities, reduce interest rates, but impose strict monitoring."
HBL Banker:
"Monitoring has failed before. How do we enforce it now?"
State Bank Official:
"By appointing oversight committees. Every disbursement monitored, every rupee tracked. No freedom without accountability."
It was a compromise that could save the group—if the family accepted oversight.
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Scene 9: Pride vs. Survival
Back at Dewan House, the proposal sparked debate.
Son 2:
"Oversight means humiliation. Bankers in our offices, dictating decisions. We'll be puppets."
Son 1:
"Better a puppet than a corpse. Survival first, pride later."
Yousuf Dewan (quietly):
"Perhaps this is the price of our mistakes. If oversight is what it takes, we must swallow it. The alternative is erasure."
For a moment, even he, once defiant, seemed resigned.
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Scene 10: The Fragile Agreement
By early 2022, after months of wrangling, a fragile agreement was reached. Banks extended repayment timelines, cut interest rates marginally, and accepted limited equity stakes. In return, Dewan companies submitted to strict monitoring.
At the signing ceremony, the atmosphere was cold.
HBL Executive (shaking hands stiffly):
"Mr. Dewan, let us hope this is truly the last restructuring."
Yousuf Dewan (forcing a smile):
"Hope, gentlemen, is what built industries. Without it, none of us would be here."
The cameras clicked, the agreements were signed—but behind the smiles lay suspicion on both sides.
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Scene 11: The Public Perception
The newspapers the next day carried headlines like:
"Banks Throw Dewan a Lifeline—For Now" (Dawn).
"Restructuring or Reprieve? Creditors Hedge Bets on Dewan Group" (The News).
On social media, the public was less forgiving.
A Karachi businessman tweeted:
"Same story every decade. Dewans default, banks forgive. Meanwhile, SMEs get crushed for loans as small as 10 million."
A student from Hyderabad posted on Facebook:
"My uncle worked at their factory. He says they're trying to revive. I hope they succeed, or this city will have nothing left."
Public trust remained fragile.
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Scene 12: A Final Reflection
Late one night, Yousuf sat alone in his study, staring at the signed restructuring papers. They were lifelines, yes, but also shackles.
He murmured:
"We once commanded respect. Now we negotiate for mercy. Is this survival—or just a slower death?"
The question lingered in the silence of the old house, echoing louder than any banker's demand.
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Closing Thought
Negotiating with creditors had bought Dewan Group time, but not redemption. Oversight and suspicion now shadowed every move. The family had traded independence for survival.
For the first time in decades, the fate of the Dewan empire was no longer in the family's hands—it rested with the very bankers they once commanded.
And in Pakistan's turbulent financial landscape, even the best-negotiated deals could unravel overnight.
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