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Introduction:
Corruption is defined as the misuse of any entrusted power for personal benefit. Unfortunately, corruption is spreading like a disease in Pakistan. The preference of personal interests over national interests in every department of Pakistan has resulted in the decline of the state. Corruption is a root cause of bad governance and crisis situations in Pakistan. In this paper, I will discuss the dimensions of corruption in Pakistan, how corruption has affected Pakistan, and how we can drive out corruption from Pakistan.
Dimensions of corruption in Pakistan:
Corruption in Pakistan has various dimensions, including widespread financial and political corruption, nepotism, and the misuse of power. The level of corruption in society depends on the values and morals of society. Most corruption in Pakistan is found in development projects, bank loans, and procurements, which have crippled the economy of Pakistan. Corruption exists in both the public and private sectors and in governance.
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Public utilities:
Public utilities, public services, and local community-based groups are involved in corruption in Pakistan. There is an extreme level of corruption in the public sector, including organizations like WAPDA, Sui Gas, and transportation. People are denied their basic needs due to corruption in society, leading to protests in Pakistan.
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The tax regime:
The taxation system of Pakistan is rife with corruption. Tax evasion is rampant, with less than one million people out of nearly 200 million paying taxes. The undocumented economy in Pakistan’s business sector contributes to the deficit in the budget and hinders economic growth.
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Public sector banking:
The financial sector in Pakistan is a hub of corruption, with loan recovery efforts undermined by the fear of politically motivated retribution. Corruption in the financial sector affects public finance administration across federal, provincial, and local administrations.
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Public sector expenditures:
The public expenditure process in Pakistan is marred by corruption, with government contracts not always awarded through open and competitive bidding. Public sector services such as power, utilities, infrastructure, and public works are greatly affected by corruption in Pakistan.
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Underground economy:
A significant portion of Pakistan’s economy operates in the underground market, which is unregulated and untaxed. While this informal economy provides cheaper services, the lack of taxation means less revenue for the state, contributing to the country’s economic challenges.
Impacts of corruption on Pakistan:
Corruption is a root cause of underdevelopment and a negative image of Pakistan in the world. It leads to severe consequences such as poverty, illiteracy, terrorism, food and electricity shortages, and governance deficits.
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Economic crisis
Corruption is the root cause of the economic crisis in Pakistan, leading to monopolies, market distortions, and uneven wealth distribution. Tax evasion and hindered foreign direct investment further exacerbate economic challenges.
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Bad governance:
Corruption in Pakistan reflects a lack of accountability and transparency, resulting in poor governance. The absence of the rule of law and inflation contribute to the prevalence of corruption in society.
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Breakdown of structures:
Corruption erodes trust in government officials and leads to a breakdown of structures in Pakistan. Bureaucracy fails due to corruption, impacting service delivery and development objectives.
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Heavy foreign debts:
Corruption contributes to Pakistan’s heavy foreign debts, as mismanagement of funds leads to economic instability. The burden of foreign debts further weakens Pakistan’s economy.
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Discouraged FDI:
Corruption deters foreign direct investment, worsening Pakistan’s economic condition and hindering its development.
6. Image of Pakistan (FATF):
Corruption tarnishes Pakistan’s image globally, leading to consequences such as placement on the FATF grey list and difficulty in obtaining financial aid from international organizations.
Steps to drive out corruption in Pakistan:
To combat corruption, Pakistan must implement effective accountability mechanisms, strengthen regulatory systems, promote honest leadership and partnerships, enact administrative reforms, and ensure a consistent judicial system.
Conclusion:
Corruption has plagued Pakistan, leading to economic crises, governance deficits, and a negative global image. Addressing corruption requires a multifaceted approach, including accountability, regulatory reforms, honest leadership, and judicial integrity. Upholding the rule of law and implementing anti-corruption strategies are essential to restore Pakistan’s image and promote institutional development.
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