Daily Times

The public sector leadership is considered the most corrupt. Irregular payments and bribes are commonly exchanged because public services and licenses can often only be obtained by payment of bribes. Fifty percent of Pakistanis believe local government officials are corrupt. The lack of accountability and punishment, along with incompetent employees and leadership, are reasons for corruption.

Land administration is rife with corruption. Businesses report insufficient trust in the protection of property rights in Pakistan. Even though the legal system believes in the enforcement of property rights in principle, the weak judiciary and the lack of clear land titles result in corruption. An example of corruption is obvious in the construction of a large-scale housing project by the Defense Housing Authority (DHA), an arm of the Pakistani military that constructs housing for its members as well as the general public (The Nation, Jul. 2017). No houses were developed for thousands of plot owners’ victims (The Nation, Jul. 2017); almost $140 million is said to have been embezzled by the offenders, which include the brother of a former Army Chief (The News, Jul. 2017). Pakistan’s National Accountability Bureau has confiscated over 160 acres of land from the accused (The News, Jul. 2017).

The Pakistani tax administration is highly susceptible to bribery and other corrupt practices. Most taxpayers expect to pay bribes and irregular payments in the process of making tax payments. Some companies also have been asked to make advance tax payments. About 66 percent of Pakistanis consider tax officials corrupt. Inconsistent and undefined tax rates and regulations result in corruption. Tax evasion among parliamentarians was rampant until the tax agency started publishing the tax returns of parliamentarians in 2013. Because of this disclosure, tax contributions among the group rose by 200 percent (The Statesman, Jul. 2017).

Customs administration commonly requires irregular payments and bribes. Most customs rules are undefined and inconsistent. Businesses cite burdensome import procedures, tariffs, and corruption at the border as the biggest impediments for importing. Corruption, misdeclarations, undetected revenue leakage, and lack of technical support are considered obstacles to the customs agency’s fair operation and causes of corruption (USAID, 2014).

The public procurement sector is another bureaucracy known for its diversion of public funds and favoritism. Bribes and irregular payments in the process of government contract award procedures are very common; 90 percent of firms report being expected to give gifts to secure a government contract. Ineffective and inadequate procurement rules and a lack of institutional capacity and dishonest leadership to implement public procurement rules are the reason for corruption (Shabbir, 2014). Corruption is worse in defense procurement partly because procurement regulations do not need to be followed when using the ‘national interest’ exemption.

About 66 percent of Pakistanis consider tax officials corrupt. Inconsistent and undefined tax rates and regulations result in corruption. Tax evasion among parliamentarians was rampant until the tax agency started publishing the tax returns of parliamentarians in 2013. Because of this disclosure, tax contributions among the group rose by 200 percent

Corruption in national railway operator Pakistan Railways (PR) is widespread; a 2016 report found that misappropriations totaled nearly 95 million dollars (NDTV, Aug. 2016), and for some reason, PR does not always follow the official Public Procurement Rules (NDTV, Aug. 2016). Most companies are encouraged to follow special ‘due diligence’ practices to counter the corruption in Pakistan’s procurement process.

The Prevention of Corruption Act (PCA) and the National Accountability Ordinance (NAO) serve as the principal corruption control laws in Pakistan. The NAO requires that assets beyond a person’s means are considered illegitimate, and a person must show that the assets were legitimately obtained. Extortion, bribery, embezzlement, and money laundering are illegal. The NAO states that public and private sector corruption is punishable by up to 14 years of rigorous imprisonment (implying hard labor) with a fine and confiscation of assets acquired through corruption. Companies can also be held civilly liable under the PCA and NAO. Other laws prohibit public servants from accepting bribes or fraudulent behavior concerning property or elections. Many other laws also prohibit civil servants from abuse of office and require disclosure of assets and property.

The National Accountability Bureau (NAB) is the main anti-corruption department required to enforce laws against corruption. However, its power is limited by the judiciary, which most often interferes with its enforcement. The Public Interest Disclosure Bill passed in August 2017 provides whistleblowing protections for public officials (Daily Times, Aug. 2017). Unfortunately, despite these laws, corruption is still rampant in Pakistan.

Freedom of expression is protected by the Constitution but can be subject to restrictions in practice (HRR, 2016). While criticism of the government is generally allowed, criticism of the military can result in political or commercial reprisal (HRR, 2016). Journalists reporting on sensitive issues, including civil-military tensions, have faced threats, harassment, and violence (HRR, 2016). The Freedom of Information Ordinance guarantees any citizen access to public records but is restricted for having too many exceptions. In practice, there is no access to information on government spending, public procurement, and party finances. Consequently, the public has no information on how much money is wasted or stolen by government officials.

Despite many laws prohibiting corruption, Pakistan has failed to curb it. Pakistan’s ranking for being among the most corrupt has not changed and is not expected to change soon. One wonders whether Pakistani institutions will ever be corruption free. The answer is no, at least not until the culture of Pakistan changes from one rooted in the philosophy of getting a government job to get rich to a culture rooted in Islamic teaching. Islam teaches that to be Muslim, one must be a kind, sympathetic, empathetic, considerate, and honest human being. Pakistan must follow Islamic beliefs to make itself a great country; otherwise, its people have no hope for the future.

P.S. Many sources have been used to write this Op-Ed, but none have been copied verbatim. Where required, sources have been credited.

The writer is PhD (USA), Professor Emeritus (USA)