U4 Expert Answer Pakistan: Overview of corruption and anti-­corruption efforts Query Please provide an overview of corruption, including the sectors/areas of government which have the highest corruption risks, and anti-corruption efforts in Pakistan. Purpose Summary Preparation for an upcoming in-­country workshop Pakistan has regularly featured near the bottom of in Pakistan. international indices for corruption. Despite relatively strong egislation l , the country is currently lack ing in key areas,in particular Content regarding whistleblower protection and freedom of 1. Overview of corruption in Pakistan information. There is also a large gap between the legislative framework and the implementation, 2. Governance structure and anti-­corruption with a poorly funded policeforce and an anti -­ efforts in Pakistan corruption agency struggling with a lack of 3. References competent staff. The newly democratically elected government has pledged to make fighting corruption one of its priorities. Recent anti-­corruption efforts have included setting up new regional offices for the national anti-­corruption agency and proposing draft laws on whistleblowing in government departments. However, political interference in public institutions prevents independent and effective investigations into corruption. There is little indication of a firm political will to address and challenge undue influence across the public sector. Author(s): Ben Wheatland, Transparency International, bwheatland @transparency.org Reviewed by: Saad Rashid, Transparency International Pakistan, Marie Chêne, Transparency International Date: 2 9 June 2015 Number: 2015:15 U4 is a resource centre for development practitioners who wish to effectively address corruption challenges in their work. Expert Answers are produced by the U4 Helpdesk – operated by Transparency International– as quick responses to operational and policy questions from U4 Partner Agency staff. Pakistan: Overview of corruption and -­ anti corruption efforts 1. Overview of corruption in Alongside this, terrorist and rebel activities on the border with Afghanistan and in Baluchistan Pakistan province have led to growing levels of insecurity, severe human rights violationsand disruption of government services, and the security situation in Background the capital, Karachi, has also deteriorated Since its foundation in 1947, Pakistan has following clashes between armed groups and the embarked upon a long and difficult journey military (Bertelsmann Foundation 2014). towards parliamentary democracy. This has led to numerous regime changes, with power alternating In 2013 over 55 per cent of the eligible population between m ilitary and democratically elected participated in a general election and electedhe t governments. Muslim League Party (PML-­N). The election returned former prime minister Nawaz Sharif to In 1999,Nawaz Sharif’s government was power, and marked the first time a government overthrown in a military coup led by General had seen out its full term. The election was Pervez Musharraf. marred by violence and allegations of vote rigging, but was praised by the European Union Election 2008 saw democratic rule restored, with Asif Ali Observation Mission for the increase in female Zardari (the widower of formerp rime minister voters and an increased turnout compared tothe Benazir Bhutto) becoming president. The 2008 election, as well a as decrease in violent government made a number of landmark changes acts surrounding the election(European Union to the constitution, including the 18th Amendment Election Observation Mission 2013). in 2010, whichreduced the power of the president whilst strengthening parliamentary democracy Sharif’s new government has pledged to fight (European Union Election Observation Mission corruption as one of its top priorities (Business 2013). Despite this reform, feudal power Anti-­Corruption Portal 2014). structures remain in place in rural areas, and tribal structures continue to hold veto powers over state authority (Bertelsmann Foundation 2014). Corruption Trends Pakistan hasconsistently performed poorly on In 2007 President Musharraf instituted the international indicators measuring corruption, and National Reconciliation Ordinance. This created this is still the case despite recent the government an amnesty mechanism for public officials commitment to deal with the issue. Corruption is accused of corruption between 1986 and 1999. perceived to be widespread and a serious issue Following the return to democracy, the Supreme for the country. Court declared theo rdinance void and directed the p rime minister to reopen all cases against the Pakistan has featured in Transparency officials who received amnesty (U.S. Department International’s C orruption P erceptions I ndex since of State 2013). 1995, and has consistently ranked among the countries perceived to be most corrupt. In the Pakistan’s economy was badly hit by the 2014 edition, Pakistan scored 29 out of 100 (from international financial crisis of 2008, from which it 0 (highly corrupt) to 100v ( ery c lean)), up one has struggled to recover. Public debt was at 54.9 point from 28 in 2013. per cent of GDP in 2008, but had soared to 64.3 per cent in 2015 (Trading Economics 2015). The In line with these findings, the World Economic agricultural sector remains the largest employer in Forum’s Global Competitiveness Report (GCR) the country, but is characterised by low 2014-­15 finds that corruption is the second most productivity and is hampered by the feudal problematic fa ctor for companies doing business structures which remain in place. At the same in the country,followed closely by poor time, levels of foreign direct investment have infrastructure. decreased dramatically since 2008 (US$5.44 billion down to US$1.31 billion in 2011). The World Bank’sWorldwide Governance Indicators (WGI) 2013 show similarly poor results. The years between 2010 and 2012 also saw the After more than a decade of rapid decline in the country repeatedly devastated by floods which indicator for political stability (from 14.4 in 2000 to destroyed much of the rail and road infrastructure. 0.5 in 2010), Pakistan hasconsistently scored www.U4.no U4 EXPERT ANSWER 2 Pakistan: Overview of corruption and -­ anti corruption efforts poorly, with a score of 0.9 in 2013. A similar trend Baluchistan and inner ndh Si provinces, as well as is evident in the control of corruption indicators, in the federally administered tribal areas (FATA), with the 2013 score of 17.7 only a slight where neither federal nor provincial government improvement on the 2010 score (13.3). influence is strongly felt (Bertelsmann Foundation 2014). The G lobal C orruption B arometer (GCB) 2013 conducted by Transparency International Political corruption and political parties represents a snapshot ofpublic opinion in Corruption in Pakistani politics has increased Pakistan and highlights that petty bribery is a since the return ofa democratic government major issue. Additionally, 72 per cent of Pakistanis (Bertelsmann Foundation 2014). Several high-­ perceived that corruption had increased since the level officials have been involved in corruption previous GCB was published in 2011.This scandals. Former p resident Asif Ali Zardari and number has remained consistent since 2007 and the son of former prime minister Gilani are just shows that Pakistanis are notyet convinced by two examples of how Pakistan’s political elite the new government’s capacity to tackle have beenaccused of corruption (Transparency corruption. International Pakistan 2014). Forms of corruption Patronage is common practicewithin Pakistani politics. Election victories are frequently used to Corruption in Pakistan takes many forms. Petty hand out roles to loyal supporters. These roles are and bureaucraticcorruption is widespread. frequently in government institutions, leading to a Political corruption is also an issue, with a deeply lack of professionalism and partisan politicisation entrenched patronage system. of public institutions (Bertelsmann Foundation 2014). Petty and bureaucratic corruption Paying bribes is commonplace in Pakistani The World Economic Forum’sGlobal society. Bribes enable citizens to circumvent Competitiveness Report 2014-­2015 confirms the bureaucratic delays,and are also solicited by prevalence of a deeply entrenched system of public servants. Thereare many reports of bribery patronage, giving Pakistan a score of 2.6 out of 7 on the I Paid A Bribe website – a civil society (1 = worst;; 7 = best) for favouritism in government organisation in Pakistan that allows citizens to file decisions. an anonymous report whenever they pay (or refuse to pay) a bribe. Bribes are mainly paid to Elections in Pakistan are regularly marred by poll speed up bureaucratic practices, from applications rigging, militant threats and candidates acting for new passports and airportcustoms checks , to illegally (Bertelsmann Foundation 2014).The receiving tax clearance certificates needed to file 2013 election suffered from vote rigging by tax returns andgaining water connections for political parties, particularly in certain provinces in newly built properties. which monitoring is weak. The European Union Election Observation Mission (EUEOM) found in According to the Bertelsmann Foundation (2014), particular that therew as a “concerning” level of while Pakistan has infrastructure to cover all ballots that were discounted as invalid. In some administrative duties, they are poorly implemented stations as many as