25

CPEC is a game changer project which will lift millions of Pakistanis out of poverty and
misery. The project embraces the construction of textile garment, industrial park projects, construction
of dams, the installation of nuclear reactors and creating networks of road, railway line which will
generate employment and people will also take ownership of these projects. Fully equipped hospitals,
technical and vocational training institutes, water supply and distribution in undeveloped areas will
also improve the quality of life of people.
CPEC is not only the name of road, port and railway system but a multi-dollars mega project
which will bring peace and prosperity in all the provinces of Pakistan. The chairman of the Gwadar
port, Dostain Khan Jamaldini said that the CPEC would not only benefit Balochistan but also prove
beneficial for the country's three other provinces.
 CORRUPTION
OUTLINE

0 DefinitiClll of corruption
0 Essential components of corruption
0 Causes
• Lack of accountability
• Absence of rule of law
• Low salaries
• Lack of independence of judiciary
• Weak political institutions
• Political collusion with top management of a department
• Denial of basic facility of life
• Bad governance due to corruption
0 Findings of National Anti-Corruption Strategy
0 Examples of corruption
0 Effects of corruption
0 Steps to curb corruption
• Increase salaries of the government employees
• Speedy judicial justice
• Role of NAB
• Police reforms
• Judiciary and legal profession
• Access to justice programme
• Accountability courts
• Public sector financial management
• Financial oversight bodies
• Independent Anti-Corruption Agencies
• Local government
• Freedom of Information and Media
0 Conclusion
 27

ESSAY
At length corruptio11, like a ge11eral flood (So long by watchful ministers withstood), Shall
deluge all; and avarice, creeping on, Spread like a /ow-born mist, and blot the sun. "
--Alexander Pope
"ft is said that power corrupts. but actually it's more true that power attracts the corruptible.
11,e sa11e are usually attracted by other things tha11 power. " -David Brin

Corruption in Pakistan is on the decline, as Transparency International Berlin released its

annual global report 2015 showing Pakistan further improving its ranking from the 50th most corrupt
country in 2014 to 53rd in 2015. The political will of the government to fight corruption is lacking
which has resulted in the Supreme Court of Pakistan to take suo moto action against mega corruption
in NICL, Pakistan Steel, Rental Power Plants. The CPI 2010 reveals that corruption in Pakistan is
increasing, while in Bangladesh it is decreasing. Bangladesh was perceived to be the most corrupt
country in 2001, 2002 and 2003 and its ranking in 2010 is the 39 th most corrupt country. Reduced
corruption has paid dividends to Bangladesh whose annual GDP growth last year was over 5%, while
Pakistan's GDP growth last year was near 2.4 %. Delay in formation of an Independent Accountability
Commission by the parliament may further aggravate the situation.
The word "Corruption" has its origin in a Latin verb "corruptus" meaning "to break". Literally,
it means "a broken object". In simple words, corruption means "the misuse of entrusted power for
private benefit." Conceptually, corruption is a form of behaviour which departs from ethics, morality,
tradition, law and civic virtue. The term corruption has various definitions. The United Nations
Manual on Anti-Corruption, the Transparency International, and the multilateral financial institutions
like the World Bank and Asian Development Bank define corruption as, "abuse of public office for
private gains" The National Anti Corruption Strategy (NACS) has defined corruption as "a behaviour
on the part of office holders in the public or private sector whereby they improperly and unlawfully
enrich themselves and/or those close to them, or induce others to do so, by misusing the position in
which they are placed."
Section 9 of the National Accountability Ordinance 1999 has defined corruption and corrupt
practices in a comprehensive manner. It has enlisted about twelve different shades of corruption.
lllegal gratifications, bribery, extortion, abuse of office, fraud, cheating and criminal breach of trust
are some of the corrupt practices mentioned in the NAO 1999 (Annex A). Starting with the Prevention
of Corruption Act 1947, there are about sixty pieces of enactments and rules that deal with offences of
corruption and corrupt practices in Pakistan (Annex B). The most comprehensive definition of
"corruption" can be found at the web site of the Global Infrastructure Anti Corruption Center
(GIACC) http://www.giaccentre.org. It says "In its wider sense, corruption includes one or more of
bribery, extortion, fraud, deception, collusion, cartels, abuse of power, embezzlement, trading in
influence and money laundering."
The primary responsibility of ensuring the culture of sound management or what we generally
call good governance lies directly on shoulders of the civil administration. In a democratic
dispensation, the process of accountability starts at the first stage of the "conversion process" - the
 28

elections, which is the connecting link between the rulers and the ruled. It is at this stage that the
foundation of sound and transparent political culture could be laid. The electorate ought to carefully
demonstrate their first choice (right to vote) of the process and to exercise their right only under the
dictates of their conscience. In return, the rulers who are the custodians of the political environs ought
to honour the trust reposed in them and to judiciously exercise the powers they derfve from that trust.
In order to ensure consistency and sustainability of an accountable, transparent and open political
process, it is imperative to keep the connecting link intact.
Corruption is more prevalent because lack of accountability and regulation. If money that the
government receives is going in their pockets rather than being spent on the people who need it, on
their education, health and so on, then the consequences are obvious that many people do not pay
taxes because they do not trust the government to spend it on the people, they think they are corrupt
and the money would just disappear. And so this creates a vicious circle. People do not see the
government doing anything to help them, so they think it's a waste of time to pay taxes. The
government doesn't get any money from taxes and so can't do anything to help people.
Across the board application of rule of law, merit based appointments and easy access to justice
is the only solution to save Pakistan from corruption, which is responsible for poverty, inflation,
terrorism, illiteracy, lack of electricity and hording of essential food commodities.
The major reason of fast creeping corruption are political instability, poverty, unequal structure
of society, unemployment, lack of accountability, weak political institutions and absence of rule of
law. Resultant they are affecting political stability, equal distribution of resources and power,
confidence of local and foreign investors and political institutions.
The basic reason for corruption is low salaries as everyone is finding a way to better their living
standard as much as they can; it's also a human nature that he has everything more and more. So
mostly corruption is to be seen where there are people having fewer salaries they use corrupt ways to
achieve the goal. It is true that they do not have any other way to fulfill their wants.
Incompetent judiciary in terms of not bringing the culprits in to the gallows of law and absence
of bringing the corrupt politicians and policy makers to the books is another decisive factor in today's
sorry state of affairs. In the same manner the unnecessary delay in deciding the cases of corruption is a
clear explanation of the adage: the justice delayed is justice denied.
On independence, Pakistan inherited weak political institutions. Performance of these
institutions in the country over the years further damaged the culture of transparency and accountability.
Admittedly, efforts at establishing a strong political dispensation have been facing frustrations head on but
these institutions have also failed to capitalize upon the available opportunities. Their internal democratic
traditions are still weak and non transparent. Due to lack of respect for participative values, the mainstream
political parties are generally dominated by a single person.
The menace of corruption has links to a multitude of vices. Its roots are linked to injustice,
mistrust, suspicion, extremism and terrorist activities. It creates a sense of insecurity, exacerbates
poverty and adds to the misfortune of the vulnerable segments of the society. It also instills a sense of
hopelessness and despondency and threatens the strength of good values which have been established
over centuries of civilized struggle.
 29

The corporate sector is also littered with failures due to corrupt practices. Scandals in the
corporate sector are subjects of headlines in the media. Wrong practices seem too common, and
unacceptable behaviour has become a normal practice. Corporate governance has been practiced only
in form and not substance. Chairmen, chief executive officers and directors are appointed on the basis
of political and personal clout. Merit is a less visible commodity. Thus politicization and inefficiency
at the top management levels has resulted in steep decl:ne in the quality of output. Illegal convergence
of interest has encouraged insider trading which causes frustration and setback to the genuine investor.
Real demand and supply factors have negligible role in shaping the market behaviour which is
predominantly controlled by the middleman. Prices are determined by unscrupulous profiteers through
the middleman mafia. Counterfeit products have flooded the markets. Consumers are left with no
option but to live with inferior quality stuff. There is no effective consumer's rights protection regime.
The monopoly control mechanism has turned out to be of least effect. The Monopoly Control
Authority has to be improved to play an effective role in curbing the menace that has infected the
corporate sector.
Need and greed are cited as the reasons of corruption and corrupt practices. Need as a reason is
applied to low paid employees specially those entrusted with service delivery powers and public
contact. Corruption occurs out of compulsion, as those indulging in corruption are in need of the basic
necessities and lack access to social entitlement. However, need very easily merges with greed once
need is taken as a justification by those indulging in corruption and corrupt practices. It is because of
this fact that corruption is linked to poverty which is tem1ed as corruption of need. Absence of an
ethical base in societal attitudes is also cited as one of the root causes of corruption.
Corruption and corrupt practices are indicative of breaches in the governance edifice. They
pose serious threats to the sanctity of ethical and democratic values and weaken administrative,
political and social insiitutions. The issues of corruption, poverty and governance are cross cutting.
These issues put together and form an integral part of the development literature. Recently, the terms
governance and good governance are being profusely used in such literature. Good governance
remains at the forefront of every aspect of our life, be that political, social or economic. Governance
has to be good in its manifestation, and if it is not so, it is certainly no governance at all. The mere
suffix or prefix of the term 'good' does not serve the purpose.
The essential components of good governance are the rule of law, accountability, transparency
and predictability. The rule of law means equal application of law, equal protection by law and
equality before law. In the absence of the rule of law, institutions get weak and become hatcheries for
corrupt practices. The realization of the goals of good governance and prosperity becomes a myth.
According to the findings of National Anti-Corruption Strategy and the National Corruption
Perception Survey 2006 carried out by Transparency International, major causes of corruption in
Pakistan are as follows:
(a) Lack of effective Internal accountability mechanism
(b) Discretionary powers and their flagrant abuse by the public office holders
(c) Absence of and weakness of the watch-dog agencies
(d) Elected government's perpetual failure to develop proper ethical and business standards for
the public and private sector
(e) Political leaders' incompetence and betrayal of public trust with pench"Wit for self-enrichment
 30

(I) Lack of transparency in the government's decision-making process

(g) Lengthy and cumbersome procedures in the executive system
(h) Weaknesses in the judicial system
(i) Illiterate, apathetic or ignorant populace with inadequate discernment of political choices
(j) Power of influential people
(k) Inadequate wage envelope
Many people in Pakistan believe that much of the development and a significant portion of the
operations allocations are lost due to bribery and other related illegal and unethical activities. The
extreme poverty and lack of infrastructure and basic services in the rural areas of Sindh and
Balochistan is in part fueled by bribery, influence peddling, extortion, and abuse of power. The people
of Pakistan and the international donors must rise to the occasion and start pressuring the Pakistan
government to curtail corruption and to improve governance. Failure to do so in a timely manner will
continue to frustrate poor people and make them weary of the current democratic system and drive
them to extremism.
There are many example of corruption. A government official or government Minister or
his/her business partner receiving money in exchange for awarding a contract, job, promotion or
approving invoices for payment (an example that involves Bribery and Abuse of Power and may
involve Collusion). A policeman receiving money to drop charges against some one or receiving bribe
from some one to arrest another person is an example of bribery and misuse of power.
A contractor who uses sub-standard material in the construction of a large public project such a
university building, a road by-pass, or a village road. An inspecting engineer who receives bribe to
ignore the use defective material and/or workmanship and approves the project for payment. A senior
manager in a public or private organization giving a job to a friend or relative bypassing a proper
selection process is an example that involves Abuse of Power and Trading-in-influence).
A teacher who rarely goes to school to teach but collects his/her salary regularly. A bad village
leader (wadero)illegally occupies a school and uses it as guest house is an example that involves
Bribery, Abuse of Power, Fraud, Deception, and Collusion.
General perceptions and actual public surveys about corruption show that Police, Power Sector,
Judiciary, various Taxation departments (Custom duties, Income Tax), and irrigation departments are
considered the most corruption prone departments in Pakistan.
According to a report, appointments in the police force are often based on political
considerations. The instances where conflicts of interest due to personal loyalties and family
connections exist are numerous. Many complain that local landlords or urban groups with police
support exploit poor people through extortion (bogus fines, etc.).
Some important areas affected by it are discussed as under:
1. The world economic forum's Global Competitiveness Report (2007-08) identifies
corruption as the 3rd greatest problem for companies doing business in Pakistan after
government bureaucracy and poor infrastructure (Sala-i-Martin and Porter, 2008) It is
therefore a direct impediment in the way of the Direct Foreign Investment (OF!) which is
so badly needed to generate economic activity, create employment, and support the
dwindling foreign exchange reserves.