Pakistan’s Corruption a “Cancer” Blocking Investment, IMF Warns in 186-Page Report
186-page report exposes systemic graft crippling nation’s economy.
The International Monetary Fund has issued a devastating 186-page diagnostic report branding corruption in Pakistan as “persistent and corrosive,” declaring it a systemic cancer that diverts public funds, distorts markets, erodes institutions, and blocks both domestic and foreign investment for decades.
Elite capture emerges as the most destructive force, with privileged entities—many tied to state power—controlling key economic sectors through patronage and opaque influence. The IMF notes that Pakistan has languished among the world’s worst performers in global corruption-control indices for over twenty years, while Rs 5.3 trillion in reported recoveries from 2023–2024 represents only a fraction of the actual economic hemorrhage.
Pakistan’s judiciary and bureaucracy receive particularly harsh scrutiny, described as slow, politically compromised, and among the institutions citizens perceive as most corrupt. With 68 per cent of respondents viewing anti-corruption agencies as tools of political vendetta, the report warns that judicial weakness actively discourages contract enforcement and long-term investment, perpetuating impunity for the powerful.
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Governance failures extend across tax administration, public procurement, customs, and state-owned enterprises that control nearly half of GDP yet operate with minimal transparency and rampant discretionary spending. The IMF highlights the chronic abuse of supplementary grants that bypass parliamentary oversight and the persistent chasm between formal policy and actual practice.
In an unprecedented rebuke, the Fund singles out the Special Investment Facilitation Council (SIFC) for operating with “untested transparency and accountability provisions,” demanding full public disclosure of all concessions and exemptions. Without sweeping reforms—stronger procurement rules, reduced tax exemptions, judicial overhaul, and rule-based oversight—the IMF warns Pakistan faces permanent stagnation, political instability, and endless reliance on external bailouts, yet estimates that decisive action could add 5–6.5 per cent to GDP within five years.
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