1. The Unraveling of an Empire
By 2011, the Dewan Group—once a symbol of industrial strength in Pakistan—was teetering on the brink of financial ruin. The company's massive debt, failed investments, and mismanagement had finally caught up. What had once been a thriving conglomerate was now a house of cards, collapsing under its own weight.
In the boardroom of Dewan Holdings, Dewan Muhammad Yousuf Farooqui sat at the head of the table, facing a room full of lawyers, financial advisors, and family members. The tension was suffocating.
Hassan Sheikh (Financial Advisor): "Sir, we have exhausted all options. The banks are no longer willing to restructure our loans. If we don't act now, the courts will declare us defaulters."
Yousuf: (Shaking his head) "There must be another way. We still have assets. We still have factories."
Hassan: "Yes, but they are all mortgaged. Our lenders are moving to seize them."
At that moment, Mohammad Farooq Dewan, Yousuf's younger brother, who had long warned against reckless expansion, spoke up.
Farooq: "I told you years ago, Bhai, that we needed to slow down. We took too many risks. Now, we are losing everything."
A heavy silence filled the room. The inevitable truth was finally sinking in.
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2. Default and Legal Battles
By 2012, Dewan Group had officially defaulted on loans exceeding PKR 50 billion, making it one of the largest corporate defaults in Pakistan's history.
The State Bank of Pakistan (SBP) and major lenders like Habib Bank, National Bank, and MCB moved to declare Dewan Group's accounts as non-performing loans (NPLs). The legal notices started piling up.
In a tense legal meeting at Karachi High Court, the banks' lawyers pressed for immediate liquidation of Dewan assets.
Bank Lawyer: "Your Honor, the Dewan Group has failed to meet its obligations. We request the court to order asset seizure."
Dewan's Lawyer: "We seek a restructuring plan instead. Dewan Group is still operational and can recover."
The judge looked unimpressed. He knew this was one of Pakistan's biggest corporate failures, and the lenders wanted their money.
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3. The Auction of Dewan Assets
By 2013, the process of liquidating Dewan assets had begun. The once-mighty Dewan Cement plants, textile factories, and real estate holdings were now up for auction.
One of the most painful moments came when Dewan Motors' assembly plant in Sujawal was put up for sale. Yousuf visited the facility for the last time, walking through the empty corridors, remembering the day he had inaugurated it with Hyundai executives.
He stopped at the main assembly line, where thousands of cars had once been produced. His longtime plant manager, Shahid Malik, was there, watching as workers removed company logos and shut down operations.
Yousuf (softly): "I built this from nothing."
Shahid: "And you built it well, sir. But… nothing lasts forever."
The Dewan Motors plant was sold for a fraction of its original value, marking the end of an era.
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4. Family and Internal Struggles
As Dewan Group crumbled, internal conflicts within the family intensified. Yousuf's younger brothers and extended family members had already started distancing themselves, focusing on their own ventures.
In a private dinner at the Dewan residence in Karachi, emotions ran high.
Farooq: "So, what now? We've lost the banks, we've lost our businesses. What's left?"
Yousuf: (sighing) "We rebuild. We don't give up."
Farooq: "Rebuild with what? We have no capital left. Our reputation is damaged."
Yousuf's son, Ali Farooqui, who had been silent so far, finally spoke.
Ali: "Maybe we should focus on what remains. Cement still has potential if we restructure."
Yousuf looked at his son. Ali was young, ambitious, and determined—just as he had been in his early days.
Yousuf: "Then that's what we'll do."
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5. A Last Attempt at Survival
In 2014, Dewan Group tried to salvage what was left. The focus shifted to Dewan Cement, one of the few divisions that still had market value.
The remaining leadership negotiated a debt restructuring deal with some banks, allowing them to retain control over a portion of the cement business.
At a meeting with potential investors, Yousuf made his last big pitch.
Yousuf: "We still have one of the largest cement production capacities in Pakistan. With the right investment, we can come back stronger."
Some investors showed interest, but the shadow of past failures loomed large. Few were willing to take the risk.
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6. The Final Blow
By 2017, it was clear that Dewan Group would never return to its former glory. The textile business had collapsed, the automobile division was dead, and even Dewan Cement was struggling to stay competitive.
The banks, having lost confidence, forced more asset sales, leaving only fragments of the once-mighty empire.
In a rare TV interview, Yousuf finally admitted his mistakes.
Interviewer: "Mr. Dewan, looking back, what went wrong?"
Yousuf (pausing): "We grew too fast. We didn't adapt when the market changed. We trusted that things would always go our way. But in business, you must prepare for the worst."
His words echoed a lesson learned too late.
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7. The Legacy of Dewan Group
Today, Dewan Group exists in fragments, a cautionary tale in Pakistan's corporate history.
Dewan Cement continues to operate under new management but is no longer a dominant force.
Dewan Motors remains shut, with Hyundai and Kia later re-entering Pakistan without them.
The family has dispersed, some continuing small-scale businesses, but the empire will never be the same.
In his private office, Yousuf sat looking at an old framed picture—the day Dewan Motors launched Pakistan's first locally assembled Hyundai.
A tear rolled down his face.
Yousuf (whispering): "I built an empire. And I watched it fall."
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Conclusion: The Lessons from Dewan Group's Fall
The collapse of Dewan Group offers valuable lessons for Pakistan's corporate sector:
1. Overexpansion Without Financial Discipline Leads to Disaster – Dewan Group borrowed heavily but failed to sustain profits.
2. Political Connections Are Not a Substitute for Strong Business Strategy – While politics helped in the short term, it could not save them from economic realities.
3. Failure to Adapt to Market Changes Can Destroy Even the Strongest Empires – Hyundai and Kia's exit should have been a warning, but they didn't adjust.
4. Debt Can Be a Double-Edged Sword – While it fuels growth, unchecked borrowing can lead to collapse.
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Looking Ahead: What's Next?
The fall of Dewan Group reshaped Pakistan's business landscape. Other conglomerates learned from their mistakes, focusing on sustainable growth rather than reckless expansion.
But the question remains:
Could the Dewan family ever rebuild their lost empire?
Or is their legacy forever written as a lesson in business failures?