Having mentioned all the odds above, Pakistan is going through a massive
anti-corruption wave initiated by the Supreme Court of Pakistan. It is expected
to see Pakistan as a corruption- free country within 10-years from now.              

On-going Reforms


The tax officials are also part of the corruption. It is documented that
one third of the businesses are expected to bring along with them giftss that they are supposed
to present to the tax officialss
in the meetings. Shockingly, only 0.5% of the entire population of Pakistan
pays taxess, which
makes the government to consider tax modificationss to boost up the revenuess.               

Tax Administration


Pakistanis have to pay bribes, gifts when attaining any public service
and licenses. Surprisingly, the companies expect to be paid by people when they
buy the basic household needs, for instance, water connectionn, electricityy. And last but not
least, because of the corruption, the country suffers daily powerr cuts in the large parts
of the country, making life miserable for the civilians, and which also makes a
huge obstacle for all the businesses due to a mismanaged country running by
corrupt leaders.

Public Services


Pakistani police cannot be trusted by the civilians anymore. Because of
the augmented corruption taking place, the police are fully engaged in
accepting illegal gratitude’s, bribery, etc. With that being said, they fail to
deliver their legal duties when needed at the right moment. The police do not
guard/protect the companies from crime. 
Terrorism and crime are one of the biggest chunks of costs that
companies encounter in Pakistan in the current days. The effectiveness of the
police force varies greatly, and many reports show that human rights, arbitrary
behavior and corruption abuses from police forces. Therefore, the civilians of
Pakistan have lost their trust and confidence from the police forces of




d)      Other Corruptions









• Without
consistent communication and monitoring, momentum for implementation can fade.

Comprehensive policies at the national level may have limited impact on key
services in decentralized government contexts; and

• Supply of
reforms requires commitment and capacity among implementing agencies as well as
the possibility of ongoing advice and support

•Broad consultations are not enough to create
demand for reform

policies can easily collapse in the absence of a legitimate political process
leading to their elaboration

Also, further lessons that can be learned
from the Pakistani example are as follow:


• Expectations are not matched with supply of

• Poor communication with the public

• Lack of demand for reform from external

• Weak positioning of the NACS within the NAB

• Structural constraints as a result of NAB’s
contested authority

• Lack of political leadership

The National Anti-Corruptionn
Strategy does not referr
to specific programs but is structuredd around the pillars of the National Integrity System, as
developed by Transparency Internationall. As per a ‘U4’ report, the National Anti-Corruptionn Strategy is especially helpful
for its analysiss and
diagnosis of the Pakistanii
corruption condition and the detailed programs of reformss it recommends. The U4
study highlightss
many obstacles that have hamperedd
the effective implementation of the National Anti-Corruption Strategy till date:

c)      The National
Anti-Corruption Strategy in Practice



Despite the implementationn of the public
procurement rules, corruptionn
in public procurement is extensive. About ninety percent of the firmss have said, in order to
securee their
government contracts, they are expectedd to provide gifts to other companies. The Competitionn Commission of Pakistan addressess  corrupt activities such as collusivee practices, abuse of
market dominance, deceptive marketing, and harmful mergerss and acquisitions.
Therefore, the companies are suggested to put into practice a unique diligence
process to counter the possibility of encounteringg corruption in the procurement

 In addition to that, there is an
independentt complaint
system for the procurement processes. Complaint mechanisms are set up at the
administrative and judicial level.

Transparency Internationall
Pakistan has supportedd
these efforts by promoting the acceptance of the TI’s Integrityy Pact as an integral
part of all major public contractss
exceeding PKR ten million.


The Public Procurement Regulatory Authority is includes of a financee decision, secretary,
and the secretariess
of the ministries of industries and productionn, defense, waterr and power, housing and works and communicationss. Three members from the
privatee sector who
are selected by the federal government also sit on the Public Procurement
Regulatory Authority. The agency can exercisee powers as may be necessary for improving
the governance, transparency and accountability of the public procurementt of goods, servicess and works for the
public sector. Procurement procedures have been standardized in an attempt to
promote transparencyy
and reduce corruption.

The Public Procurement Regulatory Authority is responsible for the
regulation of public procurement and has taken some steps towards reformingg the process by
implementingg the
Public Procurement Ruless
in all the procurementt

b)      The Public Procurement
Regulatory Authority (PPRA)


The Public Account Committeee
of the National Assemblyy
supports the Auditing of the use of governmentt funds. However, a Global Integrity report
has argued that the appointmentt
of the head of the agencyy
of Accountant General done by the government tantamountt to direct political interference which is
not desirable under any situation.

In spite of all these troubles, the National Accountability Bureau itself
has claimedd many
victories in the fight againstt
corruption. Convictionn
rate of the National Accountability Bureau is at sixty eight percent of all the
cases that are processed. The  National
Accountability Bureau further argue that 200 billionn rupees of financial resources is wasted
through corruptt
practices at the top  government levels,
while 67 billion rupeess
have fallen prey to the lower level corruption every each year.

In termss of
international norms, Pakistan has endorsedd the ‘ADB-OECD’ Anti-Corruption Action Plan in 2001, ratifiedd the U.N. Convention
against Corruption in 2007 and signed, but not yet ratifiedd the U.N. Convention
against Transnationall
Organized Crime.

The legal framework for addressingg corruption includes the Pakistan Penal Code of 1960, the
Prevention of Corruption Act of 1947 and the National Accountability Ordinance
of 1999. The Prevention of Corruption criminalizess both the active and passivee bribery, while the National
Accountability Ordinance outlines the authority of the National Accountability Ordinance.
The ordinance was re-promulgatedd
in Septemberr 2002
with some modifications and it will remainn in force after the election of a new parliamentt. The National
Accountability Ordinance has been criticized for excluding importantt categories of officials
including the Judiciaryy
and active personnel of the armedd
forces. However, the current anti-corruption framework of the country is
perceived to be in a state of disorderr following the issue of the National Reconciliationn Ordinance by Presidentt in October 2007 to
pardonn the
Political Parties of terrible crimes which circumscribes the National
Accountability Ordinance.

a)      The Legal Anti-Corruption Framework


The prosecutionn
of cases would not be possible without better institutionss, however, and according
to the World Bank Country Assistance Evaluationn, one of the most visible actions of the
Government has been the strengtheningg of the National Accountability Bureau (NAB), which has
been mandated to investigate and prosecutee cases of corruption in Pakistan. In some cases,
allegationss of
corruption related offences are suspected to be motivated by political reasons.
One of the Presidentss
filed a reference against the Chieff Justice, the head of  Supremee Court, on charges of misuse of authority and misconduct only
after failing to obtain his voluntary resignation.

The highh
prevalencee of
corruptionn in the
sectors covered in the nationall
survey suggest that the problem likely cutss across provincial, federal and local administrationss since service delivery
is divided between different political levels. Moreover, the country is  administrativelyy structuredd in a way that there are one hundred times
more juniorr level
civil servants than senior officers, which createss a ready group to engage in the petty
abuses currently plaguingg
the country.

The country’s taxx
and publicc finance
administrationn has
also been affectedd
by corruption. The World Bank’s Publicc Expenditure Managementt report on the country showed widespread
collusionn between
taxpayers and tax officials, a situation that led to tax evasion and lack of
tax compliance. A recentt
report on publicc
sector accounting in Pakistan tells us how its public sector accounting and auditing
does not complyy
with internationall

The other sectorr
in the country which is seen as notoriouslyy inefficient and corrupt is the Judiciaryy. According to
International Pakistan’s survey, ninety six percent percent of the people who
came in contactt
with the judiciary encounteredd
corruption and forty dour percent of them reported having to pay a bribe to a
court official.

After governmental permission, the Company has to approach the Export
Processing Zone Authority for procurement of land & labor. The Worldd Bank and the Auditorr Generall of Pakistan have constantly
cited governancer
problems in recruitmentt,
site selection, absenteeismm
and corruptionn for
developmentt projects.
In response, the Worldd
Bankk and the Asia
Developmentt Bank
are assistingg the
country in establishing e-governance in order to encourage transparency and
lessen the corruptionn
in procurement processes and other areas of governance.

The Worldd
Economic Forum’ss
Global Competitivenesss
study identifies corruption as the third biggestt problem for companies doing businesssin Pakistan, after
bureaucracyy and
poor infrastructureee.
Roughly about 40 percent of companies in Pakistan feel that corruption is one
of their major concerns. Interestingly, the country is still seen as a
relativelyy better
place for running a business than its neighborss e.g. India, Indonesia, Philippines etc.

The foremost factor involved is ‘political corruption’ coming from
highest echelonss
when the company approaches the government through its Ministry of Commercee, for setting up
industry in the country. As per unclassified information, as much as ten
percent of the total foreignn
investment is demanded as graft to set up business in the country against which
there is no immunity.

Corruption is a massive hurdlee to all the businesses in Pakistan and all companies
should expect on a regular basis to encounterr bribery or any other corrupt practices. It
is unfortunately out of control in all the sectors and institutions of
Pakistan, even though the Pakistani Penal Code (PPC) which is applied to each
individual makes it illicit to offer, accept or pay any sort of a bribe. Any
company that engagess
in the above mentioned activities could be held criminally accountable under
the Preventionn of
Corruption Act (PCA) and the National Accountability Ordinance (NAO). The Gifts,
Bribery, and facilitation payments are forbidden but regrettably are very
ordinary practices now. Pakistan is unable to guarantee integrity in state
bodies and has sadly failed to prevent corruption which could be a huge threat
for foreign businesses that are planning to accept any engagements in the

The country of Pakistan is one of the corrupt countries in the developing
world. Moreover, foreign businesses who plan to accept any engagements would
encounter massive issues that lead ultimately an increase in costs such as
bribery, gifts, extortions and much more. Unfortunately, all the government
sectors starting from the top level of governance to the bottom level are
vigorously engaged in corruption such as judiciary, public procurement
authorities, police forces, public services, tax administration etc. Despite
the strong laws of public procurement strategy or anti corruption framework, about
ninety percent of the firms have reported that in order to securee government contracts,
they are expectedd
to provide gifts & grafts.


The main issue is “Corruption” in Pakistan


The country of Pakistan has a big market and furthermore one million
children go to schools from class 1 to High School. However C Company is
only worried about the massive corruption that pervades all sectors of its
economy. The effectt
of corruption in infrastructuree
is to increase costs and constructionn time, lower the quality and decrease the benefitt. Daniel Kaufmann from
the World Bank, extendss
the conceptt of
corruption  to include legal corruptionn in which power is
abusedd within the
confiness of the
law as those with power often have the abilityy to make laws for their protectionn.  

Pakistan is a country that is located in South Asiaa and on an intersection
of West Asia, East Asiaa
and Central Asia. The country is the fifthh most heavily populated with a population of two hundred
and seven million people. It is surrounded by India to the east, Afghanistann to the west, Irann to the south west, and
Chinaa in the far
Interestingly, Pakistan is the only Muslim country with a Nuclearr power. It has been
listed amongst the eleven countries as the high potential of becoming the
world’s biggest economies in the twenty first century. The country contains the
world’s largest deepp
sea port located in Gwadarr,
Pakistan, which is highly beneficial to the businesses that export their
products into Asia since this could be the closest drop off point and be a
great help in reducing the cost eventually.  

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