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2014 NIS Pakistan EN.Pdf NIS COUNTRY REPORT Foreword I have great satisfaction in introducing Pakistan’s National Integrity System Country Report. The objective of the NIS report is to assess and evaluate the various key institutions of governance in the country. These institutions are responsible for integrity and the elimination of corruption. A study of the NIS was earlier conducted by TI Pakistan in 2002, in which research was undertaken in 8 pillars of the state. This research looks into the laws and practice in 13 pillars of the state. The strengths and weaknesses of different pillars have been identified. Recommendations to improve governance in the key institutions have been specified. It is hoped that the Government will utilize this report to improve the practices so that corruption in the country can be minimized. This work was made possible due to a grant from the Transparency International Secretariat. Furthermore, the research had been undertaken by Islamic Countries Society of Statistical Sciences (ISOSS) Saad Rashid Executive Director, Transparency International Pakistan 1 NIS COUNTRY REPORT Project Team Lead Researcher: Dr. Munir Ahmad Founding President, Islamic Countries of Statistical Sciences (ISOSS) and Chairman, Social Research Centre (SRC), Lahore. Researchers: Dr. Khalil Ahmad Dean, School of Computer science and Director Research, National College of Business Administration and Economics, Lahore. Dr. S.A. Lodhi Assistant Professor (Management), National College of Business Administration and Economics, Lahore Dr. Alia Ahmed Assistant Professor (Management), National College of Business Administration and Economics, Lahore Dr. M. Faisal Qadeer Assistant Professor (Management), National College of Business Administration and Economics, Lahore Mr. Omar Sadik CEO, Azm-e-Nau, Islamabad Dr. Anwar Hasnain Assistant Professor (Statistics and Management), National College of Business Administration and Economics, Lahore Mr. M. Iftikhar Executive Secretary and PA to Minister of Housing, Lahore Editors: Mrs. Abdul Razzaq (M.Phil. English) Assistant Professor, Lahore College University, Lahore Miss Fizzah Ahmed Private Consultant now in the University of Melbourne, Australia. Managing Editor: Dr. M. Faisal Qadeer Contributor: Review Team: Transparency International Pakistan: Mr. Saad Rashid, Executive Director Mr. Fawad Syed, Project Manager Ms. Maryam Mughal, Project Coordinator Mr. Mohammad Ali Taj, Analyst Ms. Marium Asif, Asst. Project Coordinator Transparency Inetrnational -Secretariat: Mr. Andrew McDevitt Advisory Committee: Justice Retd. Dr.Ghous Mohammad, Former Judge Sindh High Court Ms. Shama Ahsan Khan, General Manager Finance, KPT Dr. Arif Alvi, Member of National Assembly Mr. Arshad Zuberi, Chief Executive and Editor, Daily Business Recorder Ms.Yasmeen Lari, Chairperson, Heritage Foundation Mr. Mohammad Hidayatullah, Director State Bank of Pakistan Brig (R) Muhammad Mussadiq Abbasi, DG, National Accountability Bureau 2 NIS COUNTRY REPORT About Transparency International Transparency International (TI) is the civil society organization leading the global ght against corruption. Through close to 100 chapters worldwide and an international secretariat in Berlin, Germany, TI raises awareness of the damaging eects of corruption. And works with partners in government. Business, and civil society to develop and implement eective measures to tackle it. For further information please contact: Transparency International Alt Moabit 96 10559 Berlin, Germany Tel: + 49-30-34 38 20-0 Fax: + 49-30-34 70 39 12 E-mail: [email protected] Web http://www.transparency.org About Transparency International Pakistan Transparency International Pakistan (TI Pakistan) is the Pakistani chapter of Transparency International, established in 2002 whom main aim is to strengthen the global value system by making Transparency and accountability more relevant public norms. Working in collaboration with other stakeholders, departments, TI Pakistan regularly published research papers, reforms, and reform manuals with aim to disseminate information for all stakeholders, and also conducts capacity building workshops For further information please contact: Transparency International Pakistan st 5-C, 1 oor, Khayaban-e-Ittehad, Phase VII, Defence Housing Authority Karachi. Phone : 021-35390408-9 & 35311897-8 Fax : 021-35390410 Email : [email protected] Web : www.transparency.org.pk Disclaimer Every eort has been made to verify the accuracy of the information contained in this report. All informa- tion was believed to be correct as of the Dec 2013. Nevertheless, Transparency International Pakistan cannot guarantee the accuracy and completeness of the contents. Nor can Transparency International Pakistan accept responsibility for the consequences of its uses for other purposes or in other contents. Contributions to this Report by authors external to Transparency International Pakistan do not necessarily reect the view of Transparency International Pakistan. 3 NIS COUNTRY REPORT TABLE OF CONTENTS I. NATIONAL INTEGRITY SYSTEM 7 II. EXECUTIVE SUMMARY 11 III. COUNTRY PROFILE-THE FOUNDATIONS FOR THE NATIONAL INTEGRITY SYSTEM 15 IV. CORRUPTION PROFILE 25 V. ANTI-CORRUPTION ACTIVITIES 27 VI. THE NATIONAL INTEGRITY SYSTEM 29 Pillar 1: Legislature 29 Pillar 2: Executive 45 Pillar 3: Judiciary 57 Pillar 4: Public Sector 79 Pillar 5: Law Enforcement Agencies 101 Pillar 6: Electoral Management Body 117 Pillar 7: Ombudsman 133 Pillar 8: Supreme Audit Institution 145 Pillar 9: Anti-Corruption Agencies 159 Pillar 10: Political Parties 177 Pillar 11: Media 191 Pillar 12: Civil Society 211 Pillar 13: Business 227 VII. CONCLUSION 251 VIII. BIBLIOGRAPHY 261 IX. REFERENCES 271 5 I. NATIONAL INTEGRITY SYSTEM Chapter I NATIONAL INTEGRITY SYSTEM I. NATIONAL INTEGRITY SYSTEM The National Integrity System (NIS) assessment proposes an evaluation of the key institutionsof governance which are responsible for progressing integrity and eliminating corruption in the country. In 1990, the concept of a National Integrity System was developed by Transparency International (TI) as a tool to assess and prevent corruption. It drew together actors and institutions, which are crucial in ghting corruption in the National Integrity System .1 The NIS methodology provides a framework for analysing the robustness and eectiveness of a country’s institutions in preventing and ghting corruption. A well- functioning National Integrity System is an eective safeguard against corruption, abuse of power, and misappropriation. The assessment of the country’s National Integrity System analyses the existing anti-corruption mechanisms and their eectiveness, by studying 13 ‘pillars’ or institutions for ght against corruption. The NIS study is based on the assumption that the strength of each pillar relies on its foundations embedded in the overall political, socio-economic, and socio-cultural context. Table 1: Classication of Pillars Government Public Sector Non-Government Institutions Institutions Institutions 1. Legislature 4. Law Enforcement Agencies 10. Media 2. Executive 5. Election Commission 11. Civil Society 3. Judiciary 6. Ombudsman 12. Political Parties 7. Supreme Audit Institutions 13. Business 8. Anti-Corruption Agencies 9. Public Sector 1 www.transparency.org, 2008. 7 NIS Country Report The purpose of conducting this assessment is to examine public and private sectors of Pakistan in terms of accountability and governance. According to the NCPS (National Corruption Perception Survey) 2010 by Transparency International Pakistan, the most important cause of corruption in the opinion of common citizens is the lack of accountability, lack of merit and low salaries2 . Corruption is an undercurrent of almost all public and private institutions, although Pakistanis continued to believe that private sector is less corrupt than the government sector. According to the survey, the average bribery per household has increased from USD 89.85 in 2009 to USD 100.42 in 2010. Our research indicates that although laws against corruption are comprehensive and strict, implementation is very weak. There are many law enforcement institutions, Acts, Orders, Ordinances and a plethora of other legal instruments, yet they so far seem to be insucient for eliminating corruption. The above stated reasons were the main driver for conducting the National Integrity System Assessment. The understanding of “integrity” stipulates that corruption can be curbed if integrity prevails in public life. In the early 2000s, TI proposed a research methodology to study various parameters of corruption for creating the integrity system in countries. TI’s research methodology includes a desk study based on literature review, interviews with people in the public and private sectors and a subsequent scoring system for quantitative assessment of the pillars.3 The NIS country report assesses the performance of the legal provisions that safeguard individual and institutional corrupt practices by analysing their strong and weaker points. Not only does the study highlight the precise areas in need of reforms, it can also be used to compare performance across institutions or sectors. By identifying key recommendations, the pillar-specic assessment can be a basis for future advocacy activities and pave way for political reforms, that might ultimately help in ght against corruption. The Research Methodology Each of the 13 pillars is assessed, both in law and in practice, along three dimensions viz. Capacity, Governance and Role. In the rst place, the pillar’s
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