Islamabad(The COW News Digital) The International Monetary Fund (IMF) has issued a stern warning about the pervasive levels of corruption across all tiers of Pakistan’s government, highlighting the significant economic and social costs of entrenched malpractice. In its 186-page report, the IMF emphasized that the most damaging corruption occurs when powerful and privileged groups manipulate key economic sectors, including state-owned and state-supported enterprises, for personal gain.
According to the report, there is no fully reliable method to quantify the true extent of corruption in Pakistan. However, the National Accountability Bureau’s (NAB) recent recovery of 5,300 billion Pakistani rupees over just two years serves as an indicative measure of the scale of the problem. The IMF noted that these recoveries represent only one dimension of corruption’s broader economic impact.
The Ministry of Finance released the report three months late, under pressure from the IMF, to facilitate the approval of $1.2 billion in two upcoming tranches during the IMF Executive Board’s next review. The fund predicts that implementing comprehensive governance reforms could boost Pakistan’s GDP by 5–6.5% over the next five years.
Drawing a historical parallel, the IMF cited Pakistan’s founder Muhammad Ali Jinnah’s 1947 speech, noting that 70 years later, corruption remains the country’s greatest barrier to economic and social progress. According to the report, corruption leads to wastage of public funds, market distortions, unfair competition, erosion of public trust, and obstacles to investment.
The report highlights how ordinary citizens are often forced to pay bribes to access public services, while policy-making remains heavily influenced by political and economic elites exploiting public power for private interests. Weak judicial oversight and ineffective accountability institutions further exacerbate the problem.
The IMF also referenced the 2019 authorization of sugar exports under the previous PTI government as an example of how influential business groups and officials manipulate policies for profit. Investigations revealed that sugar mill owners engaged in hoarding, artificial price inflation, and money laundering, resulting in massive financial gains for the few while the public bore the burden.
To address systemic issues, the IMF recommended strengthening judicial accountability, improving monitoring of performance and ethical standards, and establishing transparent, merit-based procedures for judicial appointments. It also highlighted weaknesses in Pakistan’s tax system, public spending, financial management, public procurement, and oversight of state institutions as major drivers of corruption.
The IMF concluded that corruption not only undermines public service delivery but also impedes economic growth, deters investment, and reduces the efficient use of national resources, making comprehensive reforms essential for Pakistan’s development.
