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TABLE OF CONTENTS
Definition....................................................................3 Corruption in Pakistan.................................................3 Factors which constitute corruption in Pakistan...........3 Corruption Report 2010 – Transparency International. . .4 Some highlights of transparency international corruption report:.......................................................5 More from the Transparency international report.........5 Levels of Corruption in Pakistan...................................6 Percentage of Respondents having encountered Corruption in South Asian countries.............................6 Key Sectors Affected by Corruption in Pakistan............7 Corruption in judiciary:...........................................................7 Corruption in Tax and public finance:.....................................7 Corruption in political leaders:................................................7 General corruption Cases in Pakistan:....................................7 Impact of Corruption in Pakistan:.................................8 Defective or dangerous Infrastructure:...................................8 Inadequate Infrastructure:......................................................8 Lack of education:..................................................................8 Lack of hospital facilities:.......................................................9 Impacts of Corruption on poor’s:............................................9 Causes of Corruption and Current anti-corruption institutions in Pakistan................................................9 NAB (anti corruption institution in Pakistan)..............9
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..........................................................10 Fault in political system.......10 Politicization and inefficiency at top management levels..Project on corruption in Pakistan 2011 Causes of Corruption in Pakistan:.................12 Conclusion...........................................................11 Suggestions about the system of government required for Pakistan are as follows:........................................................................................13 Conclusion Page P r i n c i p l e s o f M a c r o E c o n o m i c .......10 Need and Greed...........................................10 Solution of corruption in Pakistan:...
and/or unethical.” Or “Corruption is the behavior of private individuals or public officials who deviate from set responsibilities and use their position of power in order to serve private ends and secure private gains” CORRUPTION IN PAKISTAN Corruption is rampant (out of control) in Pakistan and is pushing our nation to a dead end. province. Page P r i n c i p l e s o f M a c r o E c o n o m i c . dishonest.Project on corruption in Pakistan 2011 WHAT IS CORRUPTION “Corruption creates such behavior on the part of office holders in the public or private sector whereby they improperly and unlawfully enrich themselves and/or those close to them. all these factors are on rise in Pakistan. it is illegal. city. misappropriation of public fund. bad debts and misuse of power. community or company). It is being constituted by favoritism. The underlying motive of corruption is to provide some one unfair advantage at the expense of either another individual entity (person or corporate) or a collective entity (country. or induce others to do so. nepotism. A bribe may be a cash payment or a gift item of considerable value. by misusing the position in which they are placed. In all cases.
comprehensive. as stated by the latest Transparency International Corruption report 2010.e. Because they know there work can only be done in every department if they follow corruption. Page P r i n c i p l e s o f M a c r o E c o n o m i c . Bribery against wrong and Bribery against right Impacts of injustice CORRUPTION REPORT 2010 – TRANSPARENCY INTERNATIONAL Every Pakistani is familiar with the word “Corruption”. but this year it was shocking Khyber Pakhton Khawa Province (former N.W. But from last few years after the end of Army regime the corruption perception has worsened especially the last year. without comprehensive checks and merit according to laws and rules Undue pressures to influence for wrong by the authoritative people Misuse of powers Mala fide intentions Theft through white collar crime (Forgery. Though the 2010 Corruption Survey Report was an eye-opener. help corruption. characterless and ineligible persons in public and private sectors i. fudge and false) Lack of scrutiny Difficulties and obstacles to seek easy.P) beat all the provinces and has the highest rate of corruption in Pakistan.Project on corruption in Pakistan 2011 FACTORS WHICH CONSTITUTE CORRUPTION IN PAKISTAN The Main factors which constitute corruption are: • • • • • • • • • • • • • • • • • • • • Injustice Insecurity Fear of survival Illogical system Unnecessary and over expanded Government machinery Under paid manpower in public and private sector Non existence of accountability Lacking of social and Moral Values Escalation in prices of goods in market Money devaluation Greed Main Forms of Corruption Placing of incompetent. true and timely justice with due respect and comfort Torture Briber. It is impossible for an ordinary person to done his work by following the proper procedure in many Public departments.F.
• Page P r i n c i p l e s o f M a c r o E c o n o m i c .Project on corruption in Pakistan 2011 SOME HIGHLIGHTS OF TRANSPARENCY INTERNATIONAL CORRUPTION REPORT: MORE FROM THE TRANSPARENCY INTERNATIONAL REPORT • The report titled the National Corruption Perception Survey 2010 showed a high rise in corruption from 195 billion rupees in the year 2009 to 223 billion rupees in the year 2010. Bureaucracy and Police had maintained their ranking as the two of the most corrupt departments in public sector in 2010.
• • Khyber Pukhton Khan is highlighted to be the most corrupt of all the provinces. land administration was the most corrupt sector. absenteeism and bribery.Project on corruption in Pakistan 2011 • • Land administration departments were placed third in corrupt practices. 414 rupees. Page P r i n c i p l e s o f M a c r o E c o n o m i c . LEVELS OF CORRUPTION IN PAKISTAN It is a widely held view that corruption in Pakistan is widespread. where average bribe paid in each incident was 46. This does not include subsequent costs of corruption in the implementation and maintenance stages of projects. This has resulted in cancellation or suspension of some of the World Bank’s projects such as the Baluchistan Primary Education Project. local government and education sectors has also increased as compared to the last year. certain other loans were withheld after irregularities were uncovered. The important business publications such as World Economic Forum’s Global Competitiveness Report (2009-2010) say that corruption is the third greatest problem for companies for doing business in Pakistan. systematic. site selection. The report lists the first two problems as government bureaucracy and poor infrastructure. and that it is entrenched at all levels of government. Corruption in the judiciary. The Organization for Economic Cooperation and Development (OECD) says that the World Bank and the Auditor General of Pakistan have complained about governance problems in recruitment. In terms of bribery. Also. A World Bank report containing an assessment of the Pakistan’s Infrastructure Capacity (PICA) dated February 2010 states that 25% of Pakistan’s Development budget for 2009-2010 was lost in the procurement process alone due to corruption. • About 70 % of people believed that the previous military government of General Pervez Musharraf was less corrupt then the present Pakistan People’s Party (PPP) led coalition (partnership) government.
73% 47% 17% 100% tax 19% 15% 25% 99% police 84% 100% 48% 100% Judiciary 75% 100% 12% 96% Bangladesh 40% India Nepal Pakistan 34% 25% 92% General perceptions and actual public surveys about corruption show that Police. various Taxation departments (Custom duties. Many complain that local landlords or urban groups with police support exploit poor people through extortion (bogus fines. KEY SECTORS AFFECTED BY CORRUPTION IN PAKISTAN Corruption in judiciary: According to a 2010 survey. Power Sector. According to a report. Income Tax). 44% of them reported that they paid a bribe to a court official. In Pakistan. The instances where conflicts of interest due to personal loyalties and family connections exist are numerous. appointments in the police force are often based on political considerations. Judiciary. The judiciary is not viewed as independent of the Executive side of the government Page P r i n c i p l e s o f M a c r o E c o n o m i c . 96 percent of the people said that they had encountered corruption in Judiciary. and irrigation departments are considered the most corruption prone departments in Pakistan.). etc.Project on corruption in Pakistan 2011 PERCENTAGE OF RESPONDENTS HAVING ENCOUNTERED CORRUPTION IN SOUTH ASIAN COUNTRIES A survey of South Asian countries reports the following percentages of respondents for having encountered corruption in key sectors in various South-Asian countries: Country Education Health 58% 15% 18% 96% Power 32% 30% 12% 96% Land and adm.
” Following are some explicit and implicit examples of corruption in Pakistan: • ”Perks are a type of corruption which country’s ruling politicians. army of servants. Corruption in political leaders: An article in one of Pakistan’s major English newspaper Daily Times says that the cost of corruption by political leaders using public office for private gain in banking sector alone cost 10 to 15%. accommodation.600 “ghost schools” which had not operated for years. became part of the loot of the generals’ corruption. The reports of 193 billion rupee loan right off from 1999 to 2009. The media. Corruption in Tax and public finance: Pakistan’s tax and public finance administration is also affected by corruption. . or storage facilities. This is equitant to an annual average GDP growth rate over 4 years. In 1997 Nawaz Sharif government appointed 30 judges to settle 48. Another report says that the Pakistani court takes an average of 880 days to settle a business dispute at a cost of 24% of the claim.Project on corruption in Pakistan 2011 but rather part of it. (www. Tax administration is an attractive sector for corruption to take place as the opportunities and incentives to engage in illegal activity are numerous.doingbusinesss. but the teachers continued to get paid. military and civil bureaucracy. long periods of martial law have provided opportunities for the generals to loot the country. The same newspaper reports that the overall cost of corruption by political leaders in Pakistan is between 20% and 25% of the GDP. Similarly.” “It is opined that 30 percent of total corruption is in government departments and banks. There is no legal and/or moral justification for such perks. by transferring public funds for their own personal gain. A 1996 investigation by Sindh Education Department discovered that 2. • • • IMPACT OF CORRUPTION IN PAKISTAN Page P r i n c i p l e s o f M a c r o E c o n o m i c . electricity.org). luxury cars. Corruption in tax sector and tax administration also dissuades honest tax payers by rendering them less competitive and making the black. General corruption Cases in Pakistan: A statement by Asian Human Rights Commission (AHRC) issued on December 8. Many of the buildings had been converted into guesthouses. bureaucracy and military elite is enjoying in the form of free fuel. the Punjab government found that about 1. judiciary.932 schools in rural areas existed only on paper.000 registered bank loans cases of 217 billion rupees. .markets a more attractive alternative. 2010 says that “. stables.
fewer classrooms in schools. In developed countries where corruption is limited to a small number of projects and where common people do not encounter corruption on a daily basis. water projects. schools. Alternatively donor agencies force privatization of infrastructure building and delivery of services giving contracts to companies that specialize in urban areas. Impacts of Corruption on poor’s: Corruption affects the poor unreasonably. badly constructed college buildings. they will not have access to educational or health institutions. the adverse impacts tend to be marginal and do not jeopardize (put a risk) the welfare of its people. where each paisa must be spent to uplift people from poverty. In contrast. a poor country like Pakistan. Technical and Engineering schools that lack laboratory facilities or library books. Inadequate Infrastructure: Incomplete roads. Such private companies often do not trust or have confidence in the local labor and tend to bring labor from other provinces or focus only on projects in urban areas resulting in the continued suffering of people living in rural communities. hospital facilities. Eventually. Lack of hospital facilities: Hospitals that have inadequate number of beds. As people of rural areas are poor and cannot pay for any services. Corruption exists in the almost all countries. bridges or housing units. the budget planners and donor countries lose confidence in the ability of an organization to deliver improved infrastructure and become unwilling to provide further funding. Lack of education: Poor education standards as Schools remain unoccupied due to absence by teachers or fewer teachers to effectively educate students. corruption has a significant impact. and no vehicles to transport patients to hospitals. dams that cannot stop floods or buildings that do not meet original requirements. A country’s or province’s development depends on how much of that country’s resources are lost to corruption. Page P r i n c i p l e s o f M a c r o E c o n o m i c . The following are some examples of the damage that is caused by corruption: Defective or dangerous Infrastructure: Poor roads. creating inequalities that violate human rights. railway tracks.Project on corruption in Pakistan 2011 To a varying (reliable) degree. due to their powerlessness to change the status and inability to pay bribes (dishonestly). However. no medicine for patients. the degree to which corruption adversely impacts common people’s lives and increases poverty is directly proportional to the level of corruption and how wide spread it is in the society.
Project on corruption in Pakistan 2011 • • Corruption is a core poverty issue as viewed by the poor themselves Corruption affects poor's basic livelihood • • Corruption can affect poor's political choices and participation Corruption affects poor's access to health services Due to the corruption occurrence in our country. Incapable and unskilled persons reach to high positions who decide the fate and future of the nation. military. According to governance experts. there is hardly any high-profile cases prosecuted in Pakistan. most of them are educated from Oxford and Cambridge. Causes of Corruption in Pakistan: It is a point to ponder on why the corruption has become so rampant? What are the causes behind its rapid growth? Fault in political system Pakistan. is quite indifferent to public welfare. NAB suffers from structural limitations and its authority is widely contested. Other than innuendo and allegations. CAUSES OF CORRUPTION AND CURRENT ANTI-CORRUPTION INSTITUTIONS IN PAKISTAN NAB (anti corruption institution in Pakistan) In addition to the law enforcement agency call anti-corruption department which is largely a non-effective organization. has been facing acute administrative disorder. No matter. a high-level body called National Accountability Bureau (NAB) is supposed to ensure accountability of high officials and political leaders. but they lack Page P r i n c i p l e s o f M a c r o E c o n o m i c . They rarely investigate cases against judges. and political allies of the group that is in power. Its real function appears to be a tool for those in power to target political opponents and junior government officials. The ruling elite. Moreover. the poor is getting poorer and the rich is getting richest day by day. the NAB is influenced by the military and largely ignores corruption by military. mostly coming from feudal class. for its faulty political system. Even the basic health facilities are getting away from the poor’s. most of them are unemployed or having very low wages which doesn’t fulfill their basic requirements of life. The poor’s have no access to the health services.
There is a mad race to over-take and over-cross each other on the highway of life. The rulers are no other than the emperors of the bye-gone age. Their free will is always threatened by the use of brutal force. Merit is a less visible commodity. speaking of common man. They. need very easily merges with greed once need is taken as a justification by those indulging in corruption and corrupt practices. Scandals in the corporate sector are subjects of headlines in the media. Absence of an ethical base in societal attitudes is also cited as one of the root causes of corruption. Another class. Chairmen. It is because of this fact that corruption is linked to poverty which is termed as corruption of need. This makes them to seek new ways of money making without any consideration of right or wrong. People in order to protect themselves from this polluted situation. However. Corruption occurs out of compulsion. which has a lion’s share in the finance and economy of the state. the omnipotent masters of their empire. people elect them against their wishes. although. chief executive officers and directors are appointed on the basis of political and personal clout. because more pollution by doing undesirable things. it is observed that the average class also longs for leading the life of pomp and show. This creates in the deprived class a desire to become over-rich.Project on corruption in Pakistan 2011 the refinement essential for a statesman. Need as a reason is applied to low paid employees specially those entrusted with service delivery powers and public contact.corruption Strategy and the National corruption Perception Survey 2006 carried out by Transparency International. Politicization and inefficiency at top management levels The corporate sector is also littered with failures due to corrupt practices. Wrong practices seem too common. They come into power through public mandate. major causes of corruption in Pakistan are as follows: • • • • Page Lack of effective Internal accountability mechanism Discretionary powers and their flagrant abuse by the public office holders Absence of and weakness of the watch-dog agencies Elected government's perpetual failure to develop proper ethical and business P r i n c i p l e s o f M a c r o E c o n o m i c . in order to make their both ends meet. Corporate governance has been practiced only in form and not substance. Government servant’s shrinking amount of salary is too small to meet their rightful needs. as those indulging in corruption are in need of the basic necessities and lack access to social entitlement. is the capitalist. According to the findings of National Anti. tamper with the rules and regulations. and unacceptable behavior has become a normal practice. Thus politicization and inefficiency at the top management levels has resulted in steep decline in the quality of output. Need and Greed Need and greed are cited as the reasons of corruption and corrupt practices. The state revenue seems to be their personal property.
rules and procedures need to be improved. All sick laws. Page P r i n c i p l e s o f M a c r o E c o n o m i c . 6) There must be a Better System of Government there is no any system of government which fails if not based on injustice and discrimination. along with accountability (But the accountability should be from top to bottom and not from bottom to top) 3) No innocent should ever suffer to any limit or be punished in any case. logical and comfortable to implement 2) Fair. 4) Focus to law of tort should be brought in practice to improve the norms of society as in Europe 5) Proper and thorough monitoring towards implementation of rules and laws. changed or destroyed as per need.Project on corruption in Pakistan 2011 • • • • • • • • • • Standards for the public and private sector Political leaders' incompetence and betrayal of public trust with penchant for Self-enrichment Lack of transparency in the government's decision-making process Lengthy and cumbersome procedures in the executive system Weaknesses in the judicial system Illiterate. well paid. positive and patriot. open and speedy trials and disposals of issues and cases according to law. If by mistake it happens that must be compensated to satisfaction of sufferer. apathetic or ignorant populace with inadequate discernment of Political choices Power of influential people Inadequate wage envelope SOLUTION OF CORRUPTION IN PAKISTAN: 1) Whole system of government including laws and rules of country needs to be reviewed by competent. law knowing people who should be well educated and experts of laws and rules to revalidate and improve the laws. rules and procedures in totality. The rules and laws should be easy to understand.
The qualities required by the leadership to come forward the leaders to come forward must have following set of concepts and slogan • • • • • • • • • Fear of Allah Vision Truth Value of time Value of competence Value of hard work Having concept to boost local and private enterprises Reliance to national resources Honest Page P r i n c i p l e s o f M a c r o E c o n o m i c . Only one competent elected/selected Muslim (Having Education of Highest Level concerning to System of Government i. The three important tiers of government i.Project on corruption in Pakistan 2011 SUGGESTIONS ABOUT THE SYSTEM OF GOVERNMENT REQUIRED FOR PAKISTAN ARE AS FOLLOWS: Elected Presidential form of Government should be modified according to requirement of our country prepared by the best experts of law having un-doubtful credibility and integrity and should not have any concern with Government or to any political party. must at least possess a valid degree of Law) should be the head of state as in elected Presidential form of Government and not a group as it happens in parliamentary form of Governments.e. The rulers should not have any exemption before the law. neat and clean 3. Legislative Body.e. Judiciary and Executive should be independent and power full but must have counter checks on each other to be devised in constitution for smooth system of government as well as accountable to each other. Rule of divine’s law given by Allah in Quran and further illustrated by Sunnah 2. We must follow the fundamental concept of formulation of government which includes: 1. Important Portfolios and Ministries should be separate from Legislative bodies to keep the legislation impartial.
justice. It is imperative that all stakeholders including political parties. All the system needs to be revised and reviewed according to true massage of Islam mainly given in Quran. CONCLUSION The future of Pakistan and elimination of poverty in rural areas of Pakistan is highly dependent on successful and completion of all development projects. the whole system should be based on logic. love. rationalism. along with all of system needs to be based on comprehensive justice. truth. The religious extremism. government officials.Project on corruption in Pakistan 2011 Corruption can never be reduced without comprehensive justice nor without qualitative leadership to come or brought forward Humble submission to address corruption and to curtail it gradually the whole system of Pakistan needs review in totality i. failing economic conditions and bad living conditions are frightening the people of rural Sindh and Baluchistan. private companies. all the laws. who until now have refused to fall in the trap of extremism. rules and system needs reviewing and all the flaws and defective rules and laws need to be destroyed. donor agencies and common people recognize the carnage that current levels of corruption can do to the heartlands of Pakistan.e. This success is threatened by the evil of corruption that must be stopped on urgently before it is too late. humbled. reduction in government machinery at every level according to right sizing. Page P r i n c i p l e s o f M a c r o E c o n o m i c . civil society organizations. vision and support. They must form a grand alliance to stop the danger before it is too late. human nature. humanity.
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