MarketCorruption in Pakistan
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Corruption in Pakistan

Corruption in Pakistan involves fraudulent practices carried out by officials and institutions, ranging from petty bribery to high-profile scandals.

Brief history
The Dominion of Pakistan was created as a result of the Pakistan Movement in 1947. Upon gaining independence, Pakistan inherited a strong bureaucracy and army from the British Raj. There has since been no major change in this bureaucratic set-up since it was first implemented by the British, although reforms were proposed by the Musharraf regime in 2007. This has led many to speculate that "corruption has seeped into the higher echelons of bureaucracy" where "corruption cases are [mostly] reported against irregular and ex-cadre appointments". On 22 November 1954, bureaucratic administrators moved a resolution to merge the four western provinces into a single unit called West Pakistan. This led to public outcry in East Pakistan who felt that they were being misrepresented and systematically marginalised by the land-owning Punjabi Muslim elites who enjoyed higher bureaucratic positions at the time. This led to the secession of East Pakistan into the separate nation-state of Bangladesh and lay witness to the corrupt malpractices of the Punjabi elite in West Pakistan. Punjabis argued that East Pakistan's majority was a consequence of the high percentage of Bengali Hindus in the province who were not involved in the state's decision-making processes. Thus, the Punjabi landowners remained largely unrepentant of their desires to "[secure] their own hegemony" leading to the loss of the eastern province in 1971. In 1974, Bhutto cancelled the fourth five-year plans bypassing the recommendations of the Planning Commission, focusing entirely on broadening government control over private business enterprises. In doing so, Bhutto's government began the politicisation of economic planning. Political interference opened doors for corrupt political practices to seep into the nation's economic planning processes. The nationalisation programme badly affected the reputation of the Pakistan Peoples Party. Accumulated losses of up to Rs 254 million were reported with several instances of over-staffing and inefficient productivity in heavy mechanical industries. By 1976, the state had been hijacked by groups and individuals trying to accumulate wealth by redistributing resources from public enterprises to private individuals. Public enterprises "became a device to extend political patronage to those that the regime favoured, to pay political debts, or to accumulate power". Denationalisation and political favouritism: 1978–1988 Bhutto's nationalisation programme lost its appeal towards the end of his government's term and the demand for denationalisation gained more currency. The successive government of military chief and president Muhammad Zia-ul-Haq released a whitepaper that led to the creation of a commission under Pakistan Industrial Credit and Investment Corporation (PICIC) to reverse earlier nationalisation efforts. Not much was achieved in this regard and only three industries, including future Prime Minister Nawaz Sharif's conglomerate Ittefaq Group of Industries, were ever denationalised and returned to their owners. Many argued that Sharif was favoured in this process because he was a political protégé of the military dictator at the helm. even though serious allegations of corruption were levelled against him during that time. In the Index, 180 countries across the world are scored on a scale of 0 ("highly corrupt") to 100 ("very clean") according to how honest their public sectors are perceived to be; a high score indicates a perception of an honest public sector. Adil Gillani, an advisor for TI Pakistan, observed in 2012 that if Pakistan checked the menace of corruption and ensured good governance, it would not require a single penny from the outside world. The 2008–2013 PPP-led coalition government was criticised as being the most corrupt in the country's history. The free and powerful local media in Pakistan exposed various cases of corruption during the government's tenure including cases of bribery and corruption in government-owned enterprises like Pakistan International Airlines Worldwide, the best score was 90, the average score was 43, and the worst score was 8. ==Anti-corruption efforts==
Anti-corruption efforts
Prevention of Corruption Acts: 1947, 1950 and 1958 The Prevention of Corruption Act, 1947 implemented in the Dominion of Pakistan was enacted to make effective provisions for the prevention of bribery and corruption of public servants, particularly in the bureaucratic administration. The autonomous Princely State of Bahawalpur adopted its own version of the act, namely the Bahawalpur Prevention of Corruption Act, of 1950. In 1955, an accord was signed between Nawab Sadeq Mohammad Khan V and Lt Gen Ghulam Muhammad Malik which made the state of Bahawalpur a part of the province of West Pakistan. This geopolitical change meant that the original act needed amendments to include Bahawalpur and other regions which were originally left out of the act. Subsequently, in October 1958, an ordinance was passed to extend the act to the whole of the province of West Pakistan – this is known as the Prevention of Corruption Act (West Pakistan Extension) Ordinance, 1958. This ordinance extended the scope of the original to the districts of Karat, Kharan, Makran and Lasbela and also repealed the Bahawalpur Prevention of Corruption Act, of 1950. National Accountability Bureau Ordinance, 1999 On 16 November 1999, Ordinance XIX was passed which later came to be known as the National Accountability Bureau Ordinance. It called for the establishment of the National Accountability Bureau (NAB) as an autonomous federal institution-building efforts to combat cases of corruption, financial crimes and economic terrorism in Pakistan. According to the ordinance, NAB was granted authority to launch investigations, conduct inquiries, and issue arrest warrants against individuals suspected of financial mismanagement, terrorism, corruption in private, state, defence and corporate sectors), and direct such cases to accountability courts. Individuals convicted under the National Accountability Bureau Ordinance are prohibited from holding political office for ten years.{{cite journal Provincial legislation against corruption The provincial governments of Pakistan are responsible for legislation in their respective provinces and since 2013, there have been several legislative efforts against corruption, primarily in the provinces of Khyber Pakhtunkhwa and Punjab. Following is a list of recent anti-corruption legislation: Khyber Pakhtunkhwa anti-corruption legislation The Khyber Pakhtunkhwa Right to Information Bill was passed in the provincial assembly on 31 October 2013. It was enacted throughout the province by the Governor of Khyber Pakhtunkhwa on 4 November 2013 as the Khyber Pakhtunkhwa Right to Information Act, 2013.{{cite web Khyber Pakhtunkhwa Ehtesab Commission ==Role of mainstream and social media==
Role of mainstream and social media
Mainstream media Before 2002, the electronic media was entirely dominated by state-owned institutions like Pakistan Television Corporation and Pakistan Broadcasting Corporation. This monopoly was thwarted, when the Musharraf regime regulated the electronic media allowing for private television channels to be operated independently. Since the liberalisation of electronic media in 2002, it has served as a major force in exposing corruption-related cases and scams. Following are a few of the major corruption scams and scandals reported and exposed in the mainstream Pakistani media: • Rental Power Projects (RPP) scam: In 2006, the media reported on a case involving several instances of bribery in the Rental Power Projects (RPP) where top-level ministers were involved. Former Prime Minister Raja Pervez Ashraf was also allegedly involved in these cases of corruption but was later cleared by the NAB. His involvement in this case earned him the nickname "Raja Rental". Once this negligence was reported in the media, the Anti-corruption and Crime Wing of the Federal Investigation Agency took action and identified fake registrations for 40 doctors and 19 medical colleges. The case of registration of 19 medical colleges in one day was investigated by Honourable Justice Shabbar Raza Rizvi and the report points towards corruption by the PM&DC Executive Committee member Dr Asim Hussain and Prof Massod Hameed Khan and the employees of the Federal Ministry. As of 2013, FIA had identified about 150 probable instances of fake registrations. The Minister of Science and Technology, Azam Khan Swati, identified and named the Minister of Religious Affairs, Hamid Saeed Kazmi, as being responsible for giving out these illegal orders. He revealed that he had already warned the Prime Minister about the scandal thereby making several leading members of the parliament accessory to these criminal offences. • OGRA scam: One Adnan Khwaja brother-in-law of PPP Secretary-General Punjab was appointed as Chairman who was instrumental in the scam. The OGRA scam case is sub-judice and the ex-chairman is being prosecuted but at snail's pace. • NATO containers case: Media reported on 40 NATO containers that went missing on their way to the International Security Assistance Force (ISAF) in Afghanistan. It was later identified that the missing containers carried cargo that was considered contraband in Pakistan, including liquor to be sold in Pakistan. • Ephedrine quota case: The Ephedrine quote case was a scandal involving Prime Minister Yousaf Raza Gillani's son, Ali Musa Gillani, who pressured officials of the Ministry of Health into allocating a quota (worth Rs 70 billion) of controlled chemical ephedrine to two different Multan-based pharmaceutical companies. • The mediagate scandal: It was reported that Chief Justice of Pakistan Iftikhar Muhammad Chaudhry's son had allegedly taken money from Malik Riaz Hussain, a real-estate tycoon, to persuade courts to give decisions in favour of the latter. Renowned columnist and anchorperson Javed Chaudhry observed that the case against Malik Riaz proved that the media can hold itself and the judiciary accountable. He further added that this case along with the case for missing persons effectively establishes the credibility and impartiality of the media's fight against corruption.{{cite news • 2024 National Highway Authority (NHA) Scandal: In January 2024, Pakistan's National Accountability Bureau (NAB) launched an investigation into alleged embezzlement of ₨25 billion (≈$90 million) in the National Highway Authority (NHA). The funds, allocated for the Sukkur-Hyderabad Motorway (M-6), were reportedly diverted through fake contracts and inflated billing. Key accused include: • Former NHA Chairman Capt. (retd.) Muhammad Khurram Agha (arrested March 2024) • 5 contractors linked to shell companies (Dawn, 2024) The scandal triggered protests by the Pakistan Engineers Forum, demanding reforms in public infrastructure tendering (The News International, 2024). Social media In the wake of the 2013 elections, massive electoral rigging was alleged through first-hand accounts of several members of the public via social networking websites. Specialised websites were set up to publish and archive material exposing corrupt malpractices throughout the many polling stations serving several constituencies. Several leaked videos of persons supposed to be caught in the act of rigging the polls went viral and caught the eye of the mainstream media becoming topics of discussion in days to follow.{{cite web Citizen journalism is emerging as a growing phenomenon and social media is being touted in Pakistan as an important tool that can be used to strengthen democracy.{{cite magazine ==Corruption by sector==
Corruption by sector
Bureaucratic corruption Bribery: common in obtaining basic services like issuing passports, CNICs, land registrations, driving licenses, etc. Nepotism and patronage: jobs, promotions, and contracts often go to those with political connections rather than merit. Misuse of authority: officials may exploit their positions for personal gain, favoring certain individuals or businesses. Embezzlement and kickbacks: misappropriation of public funds, especially in the public works, health, and education sectors. Pakistan Armed Forces The Army runs the Fauji Foundation which sold Khoski Sugar Mill in 2004 for PKR 300 million despite receiving the highest bid of PKR 387 million. In 2005, a corruption case was filed in the National Accountability Bureau (NAB) against then managing director Syed Muhammad Amjad who was involved in the corruption. In 2010, a corruption scandal was unearthed that involved two Pakistan Army generals, (Maj Gen Khalid Zaheer Akhtar and Lt Gen Muhammad Afzal), and caused a loss of to the National Logistics Corporation through speculative investments between 2004 and 2008. In 2015, both of them were convicted by the military court of Pakistan. Air Force corruption The Pakistan Air Force runs the Shaheen Foundation which founded Shaheen Insurance in 1995 as a joint venture with a South African insurance company, Hollard Group. Later, Hollard's management was dissatisfied with the investment, citing corruption as a major impediment to their investment's success. Some €50m were allegedly paid as "sweeteners" to various senior Pakistan Navy admirals and officers as well as the political leaders. In 1996–97, the Naval Intelligence led by its Director-General, Rear-Admiral Tanvir Ahmed, secretly launched its investigations into this matter and began collecting physical evidence that eventually led to the exposure of Chief of Naval Staff, Admiral Mansurul Haq, in receiving massive monetary commissions in 1997. Massive media coverage and the news of the dismissals of one and two-star admirals tarnished the image of the Navy, with Admiral Fasih Bokhari, who took over the command of the Navy from Admiral Mansurul Haq, forced to attempt damage control of the situation. Judiciary In 2002, in a report titled "Nature and Extent of Corruption in the Public Sector", Transparency International (TI) Pakistan reported that the highest amounts of bribery were spent on people affiliated with the judiciary. Later in 2010, TI Pakistan presented a breakdown of the various actors in the judicial system involved in corruption. A majority of the participants reported that they, or someone in their household, have been subjected to an act of corruption while interacting with someone from the judiciary. When asked of the actors involved, 33.62% people said court employees, 23.73% said public prosecutors, 14.12% said witnesses, 12.43% said judges, 8.19% said opponent lawyer, 4.52% said magistrates and 3.39% mentioned others. In a 2011 survey, TI Pakistan identified the judiciary as the most corrupt institution in Pakistan alongside the police. A 2025 IMF report identifies the judiciary as one of the critical bottlenecks behind corruption. As of 2025, Pakistan’s legal system was overwhelmed by more than two million pending cases. Sharif was sentenced to 10 years in prison in July of 2018 for his involvement in real estate dealings in Panama. In November of 2023 a Pakistani court overturned Sharif's conviction, and he considered rejoining the political realm. In January 2025 former Prime Minister Imran Khan was sentenced to 14 years in prison and fined for leaking state secrets. Education In the 2010, TI Pakistan reported that about 23.7% of those surveyed received admission in educational institutions through non-normal and alternate procedures. One of the biggest problems identified in the country is the presence of a non-uniform educational system. In 2011, Dr Syed Abdul Aziz, director of Hamdard Institute of Education and Social Sciences declared education as one of the most corrupt sectors in Pakistan. Police and law enforcement Corruption is found to be commonplace in the lower levels of police. Police was observed as the most corrupt sector in a 2013 survey by Transparency International (TI). The most common types of corruption were billing related. Some consumers admitted to illegally reducing their utility bills, while others reported being harassed with inflated bills intended to solicit bribes. Out of the pool of corruption-affirmative respondents, 71% reported that money was "demanded directly by the actor". Sports corruption In August 2010, reporters from News of the World orchestrated a sting operation which was able to identify three Pakistani cricket players – Salman Butt, Mohammad Asif and Mohammad Amir – and a bookmaker Mazhar Majeed of being complicit in a row over spot-fixing in the fourth England-Pakistan test match at Lord's.{{cite news Taxation According to the 2002 study, 99% of 256 respondents reported facing corruption of taxation. Furthermore, 32% of respondents reported paying bribes to have their tax assessment lowered, and nearly 14% reported receiving fictitious tax assessments until a bribe was paid. Electoral 1960 Pakistani Referendum • 1977 Pakistani general election The 1977 elections are widely regarded as rigged. Zulfikar Ali Bhutto, maintaining some aspects of the prior military regime, called for elections for the national and provincial assemblies on 7 and 10 March 1977, respectively. These elections were marred by allegations of manipulation, including the dissolution and replacement of the governments in Balochistan and North-West Frontier Province with PPP-led administrations. • 1985 Pakistani general election • 1990 Pakistani general election The manipulation of the 1990 election can be traced back to the pre-1988 electoral landscape, with the formation of the Islami Jamhoori Ittehad(IJI), a coalition of nine parties. This alliance, orchestrated by former ISI Chief Hamid Gul, aimed to counter Prime Minister Benazir Bhutto's political influence. Despite being rapidly assembled, the IJI failed to secure a victory in the 1988 elections. By 1990, the IJI had strengthened its position, with its chairman, Ghulam Mustafa Jatoi, serving as the caretaker prime minister of Pakistan for the elections, aiming to influence the outcome. In 2012, the Supreme Court of Pakistan recognised substantial evidence of rigging in the 1990 elections, implicating Ghulam Ishaq Khan, Mirza Aslam Beg, and Asad Durrani. The court also highlighted the illegal distribution of Rs 140 million from the state treasury to opposition politicians by Younas Habib, aimed at preventing a PPP victory. In 2012, the Supreme Court of Pakistan recognized substantial evidence of rigging in the 1990 elections. • 1997 Pakistani general elections • 2002 Pakistani general election In 2002, Pakistan's political dynamics shifted when Pervez Musharraf, holding dual roles as Army Chief and President, conducted elections.The event was notable for the direct involvement of military influence in the electoral process, a contrast to previous instances of behind-the-scenes manipulation. The elections resulted in a victory for the PML-Q, a party established shortly before the elections, consisting of politicians primarily drawn from traditional political parties such as the PPP and PML-N. To further control the political landscape, the Musharraf-led government introduced the Political Parties Order, 2002, imposing criteria that effectively disqualified the leadership of the PPP and the PML-N from participating in the elections. The administrative machinery, from the police to vote counters, was reportedly aligned with state interests, suggesting widespread rigging. • 2002 Pakistani referendum • 2018 Pakistani general election • 2024 Pakistani general election ==Notes==
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