Pakistan’s military has stepped in to take greater control of the floundering economy as concern grows that the country is falling behind its arch-rival India in the arms race.

General Qamar Javed Bajwa, Pakistan’s powerful military chief, has held private meetings with prominent Pakistani tycoons, urging them to invest more and stimulate economic growth. In return the businessmen were assured that corruption investigations hanging over them would be quietly shelved, sources have confirmed.

That could undermine Imran Khan, the prime minister, who has campaigned against the endemic corruption in Pakistani politics and business for his entire career, and was elected last year on a pledge to clean up the system. Scores of politicians have been charged, including the jailed former prime minister Nawaz Sharif