Pakistan’s founding father, Quaid-e-Azam Mohammad Ali Jinnah identified corruption as a cancer and emphasised the pivotal need to root it out from the country. However, nowadays the vice of corruption has spread everywhere in the society. It is one of the main factors that has stifled economic growth today and contributes towards rising socio-economic inequalities in the country, whereas the resulting widening gap between haves and have-nots is destabilising the fabric of society.Mounting corruption has reached such alarming proportions that in a recent ruling, the Supreme Court of Pakistan described it as an unfortunate bane of our society. Needless to say, corrupt and fraudulent activities prevailing in government organisations have tarnished their image to a great extent.
According to the World Economic Forum (WEF), corruption was the main hurdle in doing business and led to rising cost of production in Pakistan. A report released by WEF earlier this year unfolded the economic state of affairs, business environment and other references of 139 countries and it placed Pakistan at the 123rd position. Pakistan’s ranking is dwindling at an alarming rate, it further said.
S. M. Zafar, a senator and renowned lawyer, was of the opinion that corruption and unequal distribution of wealth were the main causes behind increasing terrorism, violence, and heinous crimes in the country. While addressing the 30th human rights awards ceremony in Lahore on February 27, 2011, he said, “Corruption denies the people justice and it makes their lives miserable.”
Meanwhile, the USAID has reportedly announced to launch USAID Anti-Fraud Hotline upon the recommendations of its inspector-general. The hotline shall receive complaints from government officers, members of the civil society and general public and thoroughly investigate solid complaints at the head office of the USAID’s inspector-general in Washington.
The country’s economic planners admit that the economy is riddled with rules and regulations that may once have addressed a real economic or social issue, but now too often they only serve to create arbitrary obstructions to doing business. In its annual report for the year 2005, the National Accountability Bureau (NAB) identified lengthy and cumbersome procedures in the executive system, lack of transparency in government decision making process, betrayal of public trust, weakness in the judicial system and flagrant abuse of power by public office holders, amongst the major causes of corruption in Pakistan. As dissolution of such impediments is always time consuming, therefore, slow processing of cases frequently requires the business circles and the people to pay substantial bribes or "gifts" to officials. According to the World Bank's report on Pakistan's investment climate in 2007, several managers of top firms reported that they had made payments to government officials of close to 35 per cent of the value of their enterprises’ sales in order to resolve bureaucratic issues. This phenomenon explains the colossal cost of doing business in the country and the exorbitant increase in the selling prices of Pakistani products.
The history of corruption is as old as the history of human civilisation. It was a serious problem back in the biblical and classical times, and so is today. However with the expansion in government activity and regulation in the modern state, opportunities and the temptations for corruption have enhanced.
There are various forms and kinds of corruption. Accepting bribes, bestowing undue favours upon favourites or gaining financial/personal benefit, in any way, are some of the most commonly practiced forms. In Pakistan, people are familiar with a form of political corruption as well. In this category, the most common forms of corrupt practices include: horse-trading, coercion, intimidation, threats, bank loan write-offs, etc.
Furthermore, corruption is not restricted to a few countries. It afflicts all societies, irrespective of their creed and level of socio-economic development. Nonetheless, it seems to be more widespread in the third world countries, in particular in those states where official business is conducted under the cover of secrecy and officials enjoy wide discretionary powers.
One of the perceived pre-requisites of good governance is transparency in administration and, in fact, in public life as a whole. If the government of a country is conducted openly, the government can afford transparency in most of its activities.
On the other hand, corruption inhibits good governance. It undermines economic development, stunts growth, fuels poverty and creates political instability. No nation can develop to its full capacity if its social system is plagued by corruption and inefficiency. Corruption not only causes a severe drain on the national economy, it also acts as a major disincentive to attract foreign investment.
Even the overseas Pakistanis are reluctant to make investment in their motherland because of widespread corruption. The more enterprising amongst them, however, prefer to establish their industrial ventures in tax free zones across the country. If the authorities want the economy to pick-up and become robust in the real sense, they need to attract entrepreneurs, including expatriates, for large scale investment in the country. Naturally, entrepreneurs prefer to invest in countries which are more business-friendly and where the industrialists have to deal with only a limited number of official agencies. If the authorities are serious about rectifying the financial situation, they need to make a beginning by eliminating the culture of nepotism, underhand deals, and lack of transparency. Until that is done, the country’s progress would be threatened and the privileged few will continue to walk away with their misdeeds.
