ISLAMABAD: Corruption continues to be the most serious obstacle to Pakistan’s economic and social progress, according to a new report released by the Finance Ministry.
The report highlights that networks linked to powerful individuals and government institutions represent the most dangerous forms of corruption, which have long hindered the country’s development.
It states that corruption has left Pakistan’s standard of living below that of neighboring countries. Lack of transparency in government decision-making and weak performance by anti-corruption institutions have further undermined accountability. The report notes that implementing recommended governance reforms could boost the country’s GDP by 5 to 6.5 percent.
Accountability mechanisms are often inconsistent and unfair, eroding public trust in state institutions. Serious weaknesses were identified in government oversight, market regulation, and the banking sector. Complex business laws and excessive government restrictions continue to hamper private sector growth and foreign investment.
The report recommends strengthening anti-corruption bodies such as the National Accountability Bureau, introducing clear and transparent rules, and improving public access to information.
It also calls for simplifying business regulations, digitizing administrative processes, reforming trade rules, and reducing unnecessary government interference to encourage investment and curb corruption.
This assessment forms part of Pakistan’s engagement with the International Monetary Fund (IMF) for a $7 billion loan program. The IMF and World Bank conducted an eight-month review of the country’s governance and anti-corruption measures.
According to the report, government actions have helped stabilize the economy, increase foreign exchange reserves, and reduce inflation.
The Finance Ministry concluded that tackling corruption and improving governance are critical for sustaining economic growth, enhancing social development, and strengthening Pakistan’s credibility on the global stage.
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