Islamabad-The International Monetary Fund (IMF) said in a report that in Pakistan, political and economic elites are capturing government policies, creating obstacles to economic growth.
The IMF has released a report on governance and corruption in Pakistan, highlighting persistent corruption risks and calling for the immediate implementation of IMF’s 15-point reform agenda. The scope of the report is limited to federal-level corruption and governance.
Questions on the powers, exemptions, and transparency of the SIFC
The report recommended that key government institutions be stripped of special privileges in government contracts, that transparency in SIFC decisions be increased, and that parliamentary oversight of government financial powers be strengthened, while emphasizing the need for reforms in anti-corruption institutions.
The IMF raised questions about the powers, exemptions, and transparency of the SIFC, demanding the immediate release of its annual report.
The report directed that all government procurement be brought under an e-governance system within 12 months, stating that more transparency and accountability are essential in policymaking and implementation.
Elite obstructing economic growth to fill their pockets: Report
The IMF report further said that political and economic elites are capturing government policies, creating obstacles to economic growth, and filling their own pockets. Funds lost to corruption could otherwise be used to boost production and development in Pakistan.
The governance and corruption report stated that improving governance would yield significant economic benefits. Reforms could improve Pakistan’s economy by 5 to 6.5 percent, and GDP could increase by up to 6.5 percent over five years.
According to the report, the tax system is complex, poorly managed, and poorly monitored, which encourages corruption. The complexity and delays in the judicial system affect economic activities. The decline in the tax-to-GDP ratio signals corruption risks, while large gaps in budget and expenditures raise questions about government financial transparency.
The governance and corruption report also stated that inconsistency and lack of impartiality in anti-corruption policies are eroding public trust in institutions. Pakistanis have to make continuous payments to access services. Districts under government and bureaucracy influence receive more development funds.
The PTI government’s 2019 sugar export permission shows the elite control policies for their own benefit, says the report
The report noted that owners of sugar mills in government positions maintained profitability at competitive costs, influencing export and price-setting policies for personal gain. Despite surplus stocks, sugar mill owners colluded to create artificial shortages and manipulate prices.
The IMF report stated that the PTI government’s 2019 permission for sugar exports shows that the elite are controlling policies for their own benefit. An investigative report confirmed that export pressures led to an increase in sugar prices, and political heavyweights were found responsible.
The governance and corruption report stated that the judicial system faces issues with old laws, judges, and judicial staff integrity, making it difficult to enforce contracts or protect property rights reliably. Corruption is considered a key factor undermining judicial performance and the rule of law in Pakistan.
National corruption survey shows judiciary as one of the most corrupt sectors along with police and public procurement: Report
According to the report, the national corruption survey shows the judiciary, police, and public procurement as among the most corrupt sectors, reflecting a lack of confidence in the judicial system. Pakistan’s judicial system faces significant practical obstacles to judicial independence. The 26th constitutional amendment changed the process for appointing the Chief Justice, increasing the number of members in the Judicial Commission.
The IMF report noted that NAB’s recovery of 5.3 trillion PKR from January 2023 to December 2024 represents only a small part of the economic damage.
