CORRUPTION IN PAKISTAN

SINCE 2008
PRESENTED BY:
AISHA NAZ
SYEDA ANOSHA
 CORRUPTION

• DERIVATION:
DERIVED FROM LATIN WORD “CORRUPTIO” , WHICH WAS DERIVED FROM
ANOTHER LATIN WORD “CORRUMPERE” WHICH MEANS MAR , BRIBE , DESTROY.
• DEFINITION:
DISHONEST OR ILLEGAL BEHAVIOR ESPECIALLY BY POWERFUL PEOPLE
OR
A DEPARTURE FROM THE ORIGINAL OR WHAT IS PURE
 CORRUPTION IN PAKISTAN
• CORRUPTION IS A PROBLEM SINCE THE INDEPENDENCE.
• CORRUPTION IN PAKISTAN IS WIDESPREAD, PARTICULARLY IN THE
GOVERNMENT AND LOWER LEVELS OF POLICE FORCES.
• TRANSPARENCY INTERNATIONAL’S 2017 PERCEPTION INDEX RANKS PAKISTAN
117TH PLACE OUT OF 180 COUNTRIES.
• IN 2017, PAKISTAN’S PRIME MINISTER NAWAZ SHARIF WAS DECLARED
INELIGIBLE TO HOLD OFFICES FOR LIFE, AFTER CHARGES OF CORRUPTION
ARE FILLED AGAINST HIM.
• RECENTLY, ASIF ALI ZARDARI IS ARRESTED AFTER A LONG CASE AGAINST
HIM.
 PAKISTAN RANKING IN CORRUPTION
Year Pakistan rank No. of countries ranked
2008 134 180
2009 139 180
2010 143 178
2011 134 182
2012 139 174
2013 127 175
2014 126 180
2015 117 177
2016 116 180
2017 117 180
2018 117 180
PAKISTAN CORRUPTION RANK
(2008-2018)
 ISLAMIC PERSPECTIVE

• AS PAKISTAN IS AN ISLAMIC COUNTRY, IT SHOULD FOLLOW THE ISLAMIC

TEACHINGS , AND ISLAM IS AGAINST CORRUPTION.
• FIGHTING CORRUPTION IS AN ISLAMIC CONTEXT MUST BE ROOTED IN THE
ISLAMIC VALUES .
• SHARIA COURTS COMPLAINT MECHANISMS OR OTHER ISLAMIC INSTITUTIONS
COULD POTENTIALLY PROVIDE ENTRY POINTS FOR ANTI-CORRUPTION
INITIATIVES, PROVIDED THAT THEY MEET BASIC HUMAN RIGHTS.
• THE SUNNAH OF PROPHET (PBUH) ALSO CENSURES BOTH THE GIVERS AND
THE RECEIVERS OF BRIBERY:
“THE APOSTLE OF ALLAH (PBUH) CURSED THE ONE WHO OFFERS BRIBE
AS WELL AS ONE WHO ACCEPTS BRIBE”
NARRATED BY ABDULLAH IBN AMR IBN AL-AS, SUNAN ABI DAWUD
 HISTORY OF CORRUPTION IN PAKISTAN

• AT THE TIME OF ANARCHY IN SUB-CONTINENT, WHEN EAST INDIA COMPANY

DESTROYED AND AUTHORITY WAS DIRECTLY TRANSFERRED TO BRITISH , AT
THAT TIME CORRUPTION WAS DECREASED BECAUSE THE BRITISH
GOVERNMENT HAD MOSTLY CONCENTRATED ON BETTER GOVERNANCE.
• THEY BUILD INSTITUTIONS SUCH AS EXECUTIVE AND LEGISLATIVE COUNCILS
,AN EFFECTIVE AND EFFICIENT JUDICIARY, BUREAUCRACY AND MILITARY.
• BUT AFTER INDEPENDENCE, THESE INSTITUTIONS SUFFERED DECLINE IN
ACCOUNTABILITY AND THUS RESULT CAUSED AN INCREASE IN CORRUPTION.
• QUAID-E-AZAM MUHAMMAD ALI JINNAH, IN HIS FIRST ADDRESS TO THE
CONSTITUENT ASSEMBLY IN 1947, HAD WARNED THAT BRIBERY AND
CORRUPTION IS A POISON AND SAID , “WE MUST PUT THEM DOWN WITH AN
IRON HAND.”
• UNFORTUNATELY, THE CORRUPT PRACTICES HAVE INCREASED TO AN
INTOLERABLE PROPORTION.
 TYPES OF CORRUPTION

1. PETTY CORRUPTION
 INCLUDES LOW LEVEL OR SMALL SCALE CORRUPT PRACTICES.

2. STATE CORRUPTION

 INCLUDES HIGH LEVEL OR “GRAND SCALE” CORRUPTION

 FORMS OF CORRUPTION

THERE ARE THREE FORMS OF CORRUPTION

1. POLITICAL CORRUPTION.
2. ADMINISTRATIVE CORRUPTION.
3. PROFESSIONAL CORRUPTION
1. POLITICAL CORRUPTION.
 DEFINED AS THE “USE OF POWERS BY GOVERNMENT OFFICIALS FOR ILLEGITIMATE PRIVATE
GAIN.”

 IT INCLUDES:
a) BRIBERY
b) NEPOTISM

c) PATRONAGE
d) EMBEZZLEMENT
e) EXTORTION AND FAVORITISM

2. ADMINISTRATIVE CORRUPTION.
 IT INCLUDES PERSONS LIKE “HIGHER AUTHORITIES , POLICE OFFICERS , CLERKS , PEONS
ETC.
3. PROFESSIONAL CORRUPTION

 IT INCLUDES THE CORRUPTION ON PROFESSIONAL LEVEL.

 CORRUPTION PRONE INSTITUTIONS

• JUDICIAL SYSTEM
• POLICE
• LAND ADMINISTRATION
• PUBLIC SERVICES
• TAX ADMINISTRATION
• LEGISLATION
 CORRUPTION IN JUDICIAL SYSTEM

• PAKISTAN’S JUDICIARY IS CHARACTERIZED BY CORRUPTION , DELAYS AND

INEFFICIENCY.
• DELAYS ARE OFTEN CAUSED BY ANTIQUATED RULES , UNFILLED JUDGESHIP ,
POOR CASE MANAGEMENT AND WEAK LEGAL EDUCATION.
• THE LOWER LEVEL OF THE JUDICIARY SUFFERS FROM NEPOTISM , INFLUENCE
FROM WEALTHY PERSONS AND INFLUENTIAL RELIGIOUS AND POLITICAL
FIGURES , AND CORRUPTION.
• BRIBES AND IRREGULAR PAYMENTS IN RETURN FOR FAVORABLE JUDGMENTS
ARE COMMON.
 POLICE

• WHEN DEALING WITH PAKISTAN’S POLICE, THERE IS A HIGH RISK OF

CORRUPTION.
• POLICE SERVICES DO NOT RELIABLY PROTECT COMPANIES FROM CRIME AND
BUSINESSES ATTRIBUTE SIGNIFICANT COSTS TO THE CONSEQUENCES OF
CRIME AND VIOLENCE.
• PAKISTAN’S POLICE FORCE SUFFERS FROM LACK OF EQUIPMENT , POOR
TRAINING AND CHRONIC CORRUPTION.
• FAILURE TO PUNISH ABUSES HAS CONTRIBUTED TO WIDESPREAD IMPUNITY.
• POLICE AND PRISON OFFICIALS FREQUENTLY EXTORT MONEY FROM
PRISONERS AND THEIR FAMILIES.
 PUBLIC SERVICES

• INEFFICIENT GOVERNMENT BUREAUCRACY TOGETHER WITH HIGH-LEVELS OF

CORRUPTION PRESENT SIGNIFICANT BARRIERS TO BUSINESS IN PAKISTAN.
• IRREGULAR PAYMENTS AND BRIBES ARE COMMONLY EXCHANGED WHEN
OBTAINING PUBLIC SERVICES.
• MAJOR CAUSES OF CORRUPTION IN PUBLIC SERVICES ARE LACK OF
ACCOUNTABILITY AND ENFORCEMENT OF PENALTIES, AS WELL AS LACK OF
MERIT-BASED PROMOTION SYSTEM COUPLED WITH LOW WAGES.
 LAND ADMINISTRATION

• COMPANIES ARE LIKELY TO ENCOUNTER THE CORRUPT PRACTICES WHEN

DEALING WITH THE PAKISTANI LAND ADMINISTRATION .
• LACK OF CLARITY CONCERNING LAND TITLES ARE SIGNIFICANT CHALLENGE
FOR INVESTORS.
• THERE ARE NO SPECIAL RESTRICTIONS ON FOREIGNERS OWNING OR
LEASING LAND, EXCEPT FOR RESTRICTIONS ON THE AGRICULTURAL SECTOR.
• MONEY AMOUNTING TO OVER $140 MILLION IS SAID TO HAVE BEEN
EMBEZZLED BY THE OFFENDERS.
 TAX ADMINISTRATION

• PAKISTANI TAX ADMINISTRATION IS HIGHLY SUSCEPTIBLE TO BRIBERY AND

OTHER CORRUPT PRACTICES.
• TAX RATES AND REGULATIONS ALSO REPRESENT A PROBLEM TO BUSINESS.
• INCONSISTENT TAXATION POLICIES ARE A CONCERN FOR FOREIGN
INVESTORS, FEDERAL AND PROVINCIAL TAX REGULATIONS PROVE DIFFICULT
TO NAVIGATE.
• COMPANIES INDICATE THAT BRIBES AND IRREGULAR PAYMENTS IN THE
PROCESS OF MAKING TAX PAYMENTS ARE VERY COMMON.
 LEGISLATION

• ACTS OF CORRUPTION AND ATTEMPTED CORRUPTION IN THE FORM OF

EXTORTION, ACTIVE AND PASSIVE BRIBERY, BRIBING A FOREIGN OFFICIAL
AND MONEY LAUNDERING ARE ILLEGAL.
• THE NATIONAL ACCOUNTIBILITY ORDINANCE (NAO) CRIMINALIZES BOTH
PUBLIC AND PRIVATE SECTOR CORRUPTION AND SETS THE MAXIMUM
PENALTY FOR CORRUPTION AT 14 YEARS OF IMPRISONMENT WITH A FINE.
THE GENESIS OF CORRUPTION IN PAKISTAN

 THE ROOTS OF CORRUPTION IN PAKISTAN IS DATE BACK TO THE COLONIAL PERIOD.

 THE ALLOTMENT OF EVACUEE PROPERTY AFTER THE PARTITION OF INDIAN SUB-
CONTINENT.

 THE “NATIONALIZATION POLICY” OF THE 1970S CREATED NEW OPPORTUNITIES FOR

CORRUPTION.
 IT HAS DEEPLY IMPACTED THE ECONOMY, AND THE SOCIETY OF THE COUNTRY.
I. ACCORDING TO “WORLD ECONOMIC FORUM’S GLOBAL COMPETITIVENESS REPORT
(2007-2008) IDENTIFIES “CORRUPTION AS THE THIRD GREATEST PROBLEMS FOR
COMPANIES DOING BUSINESS IN PAKISTAN”

II. RAMPANT CORRUPTION IN TAX AND CUSTOM.

III. PUBLIC SECTORS LIKE : PIA , RAILWAY , STEEL MILL ETC.
IV. BREAK DOWN OF LAW AND ORDER BECAUSE OF PERVASIVE CORRUPTION IN POLICE
AND LOWER JUDICIARY.
IT SURVEY ON CAUSES OF CORRUPTION-(MEGA
AND PETTY) IN 2004
Lack of Accountability 31.68%
Low Salaries 16.54%
Monopoly Of Power 16.43%
Lack Of Transparency 9.97%
Power Of Influential People 4.59%
Others 4.9%
 CAUSES OF CORRUPTION IN PAKISTAN

 ACCORDING TO KITGARD FORMULA:

CORRUPTION = MONOPOLY + DISCRETION_____ ACCOUNTABILITY.
 BACKGROUND OF THE CAUSES OF CORRUPTION IN PAKISTAN.
 BASIC CAUSES OF CORRUPTION ARE:
1. LOW SALARIES.
2. LACK OF ACCOUNTABILITY AND REGULATION.
3. CULTURE.
4. NON FUNCTIONING OF LOCAL SELF GOVERNMENT.
5. POLITICAL INSTABILITY.
6. UNEMPLOYMENT.
 IMPACTS OF CORRUPTION IN PAKISTAN
 “BRIBERY” THAT OFTEN UNDERMINES THE POLITICAL LEGITIMACY ,
SQUANDERS GOVERNMENT REVENUE , VIOLATION OF MERIT, LESS
EMPLOYMENT , DESTROY FUTURE OF EDUCATION , BAD LAW AND ORDER
SITUATION ,ETC.
 CORRUPTION CAN DETER INVESTMENT AND CAUSE THE LOWERING GROWTH.
 CORRUPTION CONTRIBUTES TO “CAPITAL FLIGHT” BECAUSE OF THE DESIRE
TO HIDE ILLICIT WEALTH FROM SCRUTINY.
 IT HAS BEEN REPORTED THAT DURING THE YEARS (2008-11) THERE WAS THE
CORRUPTION TO THE TUNES OF RUPEES OF 8500 BILLION.
 INTERNATIONAL MONETARY FUND (IMF) HAS RATED PAKISTAN AS “HIGHLY
VULNERABLE.”
 WIDESPREAD LACK OF PUBLIC CONFIDENCE IN THE JUSTICE SYSTEM.
 SOLUTIONS

• HONEST LEADERSHIP
• MERITOCRACY
• PROPORTIONAL REPRESENTATION
• FINANCIAL CONTROL
 HONEST LEADERSHIP

• MISS FATIMA JINNAH HAD ONCE SAID THAT CORRUPTION IS LIKE A SNOW
WHICH MELTS FROM THE TOP.
• ELLIOT SAYS:”CORRUPTION CAN NOT EXIST WITHOUT THE CONNIVANCE OF
POLITICAL LEADERSHIP , EVEN IF PASSIVE.”
• THUS, THE FOREMOST NEED IS THAT THE TOP EXECUTIVE AUTHORITY
SHOULD BE MEN OF INTEGRITY WHO SHOULD NOT BE CORRUPT AND SHOULD
NOT PERMIT OTHERS TO INDULGE IN CORRUPTION.
 MERITOCRACY

• IT IS A POLITICAL SYSTEM IN WHICH ECONOMIC GOODS AND POLITICAL

POWER ARE VESTED IN INDIVIDUAL PEOPLE ON THE BASIS OF TALENT,
EFFORT, AND ACHIEVEMENT, RATHER THAN FACTORS SUCH AS HEREDITY OR
WEALTH.
• AS FOR GOVERNMENT OFFICIALS AND FUNCTIONARIES, MERITOCRACY MUST
BE IMPLEMENTED.
• THE JUDICIARY BOTH AT HIGH & LOW LEVEL SHOULD BE STRONG,
INDEPENDENT, HONEST & CORRUPTION FREE.
 PROPORTIONAL REPRESENTATION

• THERE IS A TENDENCY THAT CANDIDATES FOR LEGISLATIVE ASSEMBLIES

SPEND A LARGE AMOUNT IN THEIR ELECTION CAMPAIGN AND IN BRIBING THE
VOTERS.
• IF ELECTED, THEY RESORT TO CORRUPT PRACTICES TO WEALTH TO
COMPENSATE FOR THE AMOUNT SPENT AS WELL AS FOR EXPENSES TO BE
SPENT IN THE NEXT ELECTION.
• IF THE ALTERNATIVE SYSTEM OF PROPORTIONAL REPRESENTATION IS
INTRODUCED, IT WILL BE A CHECK ON INDIVIDUAL CORRUPTION.
• AND ONLY THOSE PERSONS, WHO HAVE FAULTLESS RECORD OF HONESTY,
SHOULD BE ELIGIBLE FOR ELECTION TO LEGISLATURES.
 FINANCIAL CONTROL

• FOR FINANCIAL OVERSIGHT, THE PUBLIC ACCOUNTS COMMITTEE AND THE

MINISTRY OF FINANCE SHOULD WORK WITH EFFICIENCY AND HONESTY.
• THE WORKING SHOULD BE COMPUTERIZED, SO AS TO ADOPT BEST
INTERNATIONAL PROCEDURES AND PRACTICES FOR AUDIT AND SECURITY.
 POLITICIANS OF PAKISTAN UNDER
CORRUPTION CASES
 “NAWAZ SHAREEF FOUND GUILTY IN TWO CORRUPTION CASES”.
i. ACCOUNTABILITY OF NAWAZ SHAREEF THAT STARTED WITH VERDICT LAST
YEAR CULMINATED IN 2018 ANNOUNCED BY ACCOUNTABILITY COURT .
ii. THREE CORRUPTION REFERENCES THAT IS, AVENFIELD PROPERTY CASE ,
AL-AZIZIA STEEL MILLS AND FLAGSHIP INVESTEMENT.
iii. NAB HAD HANDED OUSTED PRIME MINISTER NAWAZ SHAREEF 10 YEARS AS
JAIL FOR OWING ASSESTS BEYOND INCOME.
iv. HE WAS CHARGED WITH RS.1.5 BILLION U.S $25 MILLION.
CONTD…
THE “ZARDARI GROUP’S” NAMED EMERGED IN CONNECTION WITH
FAKE BANK ACCOUNTS CASE.
ZARDARI AND HIS SISTER FARYAL TALPUR WERE SAID TO BE
INVOLVED IN USING FAKE ACCOUNTS FOR SUSPICIOUS
TRANSACTIONS AND ARREST WARRANTS WERE ISSUED AGAINST
THEIR NAMES.
THE FIA UNCOVERED MORE THAN 100 “BENAMI” ACCOUNTS IN
SUMMIT BANK , SINDH BANK AND UBL.
FIA WAS REVEALED THE SUM THAT IS, ABOUT RS.54 BILLION.
ZARDARI WAS ARRESTED BY NAB AND FINALLY CHARGED HIM
WITH CORRUPTION AND TAKEN INTO CUSTODY FROM ZARDARI
HOUSE, ISLAMABAD ON JUNE 10 , 2019.
THANK YOU!
QUESTIONS?