The International Monetary Fund (IMF), in a 186-page detailed and stringent report, has stated that corruption risks exist at every level of government in Pakistan.
According to the report, Pakistan does not have any reliable mechanism to measure the actual extent of corruption; however, recoveries worth Rs 5,300 billion made by the National Accountability Bureau (NAB) in just two years are a major indicator of its scale.
The report further notes that these recoveries represent only one dimension of the overall economic impact of corruption.
The Ministry of Finance released this report after a delay of three months—under an IMF requirement—so that the Fund’s Executive Board could approve the next $1.2 billion (two tranches).
The IMF forecasts that if Pakistan implements comprehensive governance reforms, the country’s economy could gain an additional 5% to 6.5% GDP growth over the next five years.
The report cites the 1947 speech of Pakistan’s founder, Muhammad Ali Jinnah, stating that even 70 years later, corruption remains the biggest obstacle to the country’s economic and social development. It leads to wastage of public funds, market distortions, unfair competition, erosion of public trust, and barriers to investment.
The report claims that citizens are often forced to pay bribes to access basic government services, while political and economic elites exert deep influence over policymaking, manipulating state power for personal gain. Weak judicial systems and ineffective accountability institutions also contribute to the spread of corruption.
The IMF referred to the 2019 sugar export approval during the PTI government as an example of how influential business groups and officials bend policies for their benefit.
Investigative findings showed that sugar mill owners earned billions through hoarding, artificial price hikes, and money laundering via fake accounts, while the public suffered from a price crisis and no effective accountability followed despite evidence.
The report states that the public perceives the judiciary as one of the most corrupt institutions, where lack of transparency, inefficiency, and incompetence undermine the delivery of justice.
The IMF recommended establishing stronger mechanisms to monitor judicial officers’ performance and ethical standards.
It further noted that recent changes in the process of judicial appointments may raise concerns about judicial independence if transparent and merit-based criteria are not established.
According to the report, the complexity of Pakistan’s tax system, weaknesses in public expenditure and financial management, flaws in public procurement, and inadequate oversight of state institutions are major drivers of corruption.
The IMF concluded that corruption not only undermines public service delivery but also hampers economic growth, investment, and the effective use of national resources.
