The background paper on “Political and Economic Power of the Military: Future Challenges and the Way Forward” has been especially prepared for the PILDAT-facilitated Dialogue Group on Civil-Military Relations. The paper is an attempt to bring into perspective Military’s role and powers in the society and what policies the civil and military leadership needs to adopt to bring those powers in line with the democratic principles of civilian supremacy. This paper has been authored by Lt. Gen. (Retd.) Talat Masood, defence and security analyst and former Federal Secretary. The objective of the paper is to understand the political and economic power of the Army in the overall context of strengthening and sustaining democracy and the processes and dynamic that are nourishing or weakening it. The paper compares Pakistan Military’s commercial interests with those of the other militaries in the World as well.