The International Monetary Fund (IMF), while issuing a comprehensive report on corruption and weak governance in Pakistan, has warned that persistent concerns about corruption in the country are adversely affecting economic performance. According to the report, if Pakistan implements a 15-point reform agenda immediately, the pace of economic growth can increase by 5 to 6.5 percent.
The IMF clarified in its report that the complexities of the tax system, weak oversight and unclear policymaking are the main drivers of corruption. According to the organization, unusual delays in court cases and a complex judicial structure also hinder business activities.
The report calls for ending special incentives given to key government entities in government contracts and for greater transparency in SIFC decisions. It also recommends stricter parliamentary oversight of the government’s fiscal powers.
The IMF stressed that reforms in anti-corruption institutions are essential as lack of transparency in policy-making and implementation slows economic growth. The report said that large gaps in budget and government spending raise questions about government fiscal transparency.
The document also revealed that NAB’s recovery of Rs 5.3 trillion between 2023 and 2024 is only a small part of the economic damage caused to the country, while the permission for sugar exports in 2019 is evidence that influential classes continue to influence policies for their own interests.
According to the report, the public has to make constant payments even to get minor government services, which deepens corruption. The IMF also said that untrained staff in government institutions, ad hoc decisions and excessive regulations are holding back the economy.
According to the international organization, Pakistan’s judicial structure is organizationally complex, which is why every matter goes to the courts and timely decisions are not possible due to thousands of cases. The IMF also pointed out that Pakistan has achieved FATF targets, but the pace of convictions has remained slow.
The IMF also stressed that strong accountability for the performance of tax officers is necessary because the current system paves the way for corruption.
