An International Monetary Fund (IMF) report has revealed what the world knew all along, albeit now in details — corruption runs deep in Pakistan and percolates from the highest echelons of power. The IMF’s latest Governance and Corruption Diagnostic Report is critical of Pakistan’s ruling elite, exposing a system so deeply compromised that corruption has become a way of life in a state where the army has its teeth in everything.
The report highlights the systematic takeover of state functions by a privileged few who extract benefits while the country sinks deeper into crisis. According to the IMF, corruption in Pakistan is driven by people who are at the helm of affairs and manage Pakistan’s economic and political landscape. These individuals influence key sectors, distort competition, and choke off growth. Behind these numbers lies a more troubling reality: Pakistan’s governance today is defined by discretion and patronage. Institutions tasked with ensuring transparency have become platforms for political bargaining. State-owned enterprises, whose assets equal 48 per cent of GDP, have become fertile ground for corruption, as political actors manipulate appointments, contracts, and subsidies for private gain. The rot, the IMF notes, extends to the judiciary and the police as well.
Slow, inconsistent, and vulnerable to influence, Pakistan’s justice system no longer inspires confidence. A majority of citizens view anti-corruption bodies as tools of political vendetta rather than guardians of public integrity. Moreover, the role of the Special Investment Facilitation Council (SIFC) - the powerful civil-military platform steering key economic decisions — is far from fair or transparent. While conceived as a mechanism to fast-track investment, its opaque functioning and untested accountability provisions appear tailored to suit the powerful.
We in India may take a moment to heave a sigh of relief, but that comfort may fade faster than expected. Indian institutions, though stronger than Pakistan’s, remain fragile and vulnerable to political pressures. The dangers of discretionary governance, political interference in institutions, opaque decision-making, and the creeping capture of influence by elite monopolies could tear at the fabric of the Indian economy.
India must remain vigilant against the slow erosion of institutional checks — from investigative agencies to regulatory bodies. Strengthening judicial capacity, ensuring transparent procurement, depoliticising appointments, and reducing opportunities for crony capitalism are essential to prevent the seeds of systemic corruption from taking root.
It is always wiser to learn from someone else’s mistakes rather than make your own. Meanwhile, corruption in high places is not merely draining Pakistan’s coffers — it is corroding its future. Unless the country musters the political courage to dismantle entrenched power brokers, no bailout or external rescue will be enough to turn its fortunes around.