Pakistan’s ranking on Transparency International’s Corruption Perception Index (CPI) 2024 has once again slipped, moving from 133 in 2023 to 135 out of 180 countries.
While a decline of two spots may appear marginal, it signals a persistent governance crisis and systemic corruption that continue to undermine the country’s economic stability and democratic institutions.
This drop reflects Pakistan’s struggle to curb corruption, enforce accountability, and restore public confidence in its governance structures.
The implications of this decline are far-reaching, affecting foreign investment, economic growth, and public trust in the government.
What is CPI ranking?
Transparency International’s CPI ranks countries based on perceived corruption in the public sector, using data from multiple independent institutions, including the World Bank, World Economic Forum, and Economist Intelligence Unit.
The index assigns scores on a scale from 0 (highly corrupt) to 100 (very clean).
Pakistan’s continued low ranking indicates deep-rooted corruption, weak enforcement of anti-corruption laws, and institutional inefficiencies.
Over the past decade, Pakistan’s CPI ranking has fluctuated, yet the country remains consistently positioned in the lower third of the index.
This reflects systemic challenges, including political interference in accountability mechanisms, lack of transparency in governance, and an ineffective judicial system that struggles to convict corrupt individuals, particularly those with political influence.
Reasons behind the decline
Several factors contribute to Pakistan’s deteriorating CPI ranking:
Weak accountability mechanisms: The effectiveness of Pakistan’s anti-corruption institutions, such as the National Accountability Bureau (NAB), has been widely questioned.
Critics argue that these institutions are often used for political victimisation rather than impartial enforcement of accountability laws.
Selective accountability and politically motivated investigations have eroded public trust in these mechanisms, reducing their effectiveness in combating corruption.
Political instability and governance deficiencies: Frequent changes in government, political turmoil, and power struggles among political parties hinder long-term anti-corruption reforms.
With successive governments focusing on short-term political gains rather than structural improvements, the country struggles to implement consistent policies to curb corruption.
Lack of judicial independence: A strong and independent judiciary is crucial for holding corrupt officials accountable.
However, Pakistan’s judicial system is often criticized for being slow, inefficient, and subject to political influence.
The backlog of corruption cases and the inability to prosecute high-profile individuals contribute to a culture of impunity.
Weak implementation of anti-corruption laws: While Pakistan has a legal framework to combat corruption, implementation remains a challenge.
Loopholes in the legal system, bureaucratic red tape, and lack of coordination among various institutions have allowed corruption to persist.
Moreover, whistleblower protection laws are weak, discouraging individuals from reporting corrupt activities.
Opaque financial practices and money laundering: Pakistan has faced scrutiny over money laundering and financial opacity.
The Financial Action Task Force (FATF) placed Pakistan on its ‘grey list’ for deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CTF) regimes.
Although Pakistan has made progress in addressing FATF concerns, lingering issues related to illicit financial flows and lack of transparency continue to impact its corruption perception.
Economic and social implications of corruption
Corruption has severe consequences for Pakistan’s economy and society.
The country faces high levels of inflation, unemployment, and fiscal deficits, all of which are exacerbated by corrupt practices such as tax evasion, embezzlement of public funds, and bribery in government contracts.
Decline in foreign direct investment: Corruption discourages foreign investors from entering the Pakistani market.
Investors seek stable, transparent, and predictable business environments, and widespread corruption raises risks associated with doing business in the country.
Lower foreign direct investment (FDI) inflows further strain Pakistan’s economic growth and development prospects.
Impact on public services: Corruption diverts funds meant for public welfare, leading to substandard healthcare, education, and infrastructure.
Misallocation of resources and favouritism in public projects reduce efficiency and quality, disproportionately affecting lower-income groups who rely on government services.
Erosion of public trust: Corruption undermines trust in government institutions.
When citizens perceive that politicians and bureaucrats are engaging in corrupt practices without facing consequences, it diminishes faith in democratic governance and discourages civic engagement.
Inefficiency in the business environment: Businesses operating in Pakistan frequently encounter bureaucratic hurdles and demands for bribes.
This inefficiency increases the cost of doing business and hampers the growth of small and medium enterprises (SMEs), which are vital for economic development.
Pakistan’s decline in Transparency International’s CPI 2024 is more than just a drop in ranking—it is a reflection of deeper governance and economic issues that have long plagued the country.
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