One the main obstacles to business in Pakistan is corruption , companies expect to regularly encounter it . Corruption is rampant in all sectors and institutions. corruption in Pakistan is discussed with detail here.
According to Pakistan Penal code any individual who offers ,pay or accept a bribe code apply to him. Companies can be held civilly liable under the Prevention of Corruption Act. Any kind of gift to government servant is prohibited in Pakistan.
Prime Minister Nawaz Sharif was disqualified from office in 2017 following a probe into undeclared offshore assets following the Panama Paper leaks.
Main Muhammad Nawaz Sharif was indicted over charges of failing to follow disclosure rules for his offshore assets. Asif Ali Zardari former president and his son
Asif Ali Zardari former president and his son had appeared before the watchdog in connection with an inquiry regarding an alleged loan obtained by the Park Lane Estate Company.
NAB claims that an inquiry was initiated against Park Lane Estate Company (Pvt) Ltd — a firm co-owned byZardari and Bilawal — and government officials for alleged illegal transfer of forest land. The bureau states that an inquiry was authorised into allegations that land belonging to the Punjab forest department was illegally transferred by Capital Development Authority officials to Park Lane Estate Company, a Karachi-based real estate firm.
Pakistan is unable to stop and prevent corruption in the state ,The government didn’t implement anti-corruption laws effectively.
Police cannot protect companies from crime and businesses attribute significant costs to the consequences of crime and violence . Pakistanis believe most or all of the police is corrupt, Pakistan’s police force suffers from a lack of equipment, poor training, a corruption.
There is a high level of corruption in Pakistan’s public sector. Inefficient government bureaucracy together with high-levels of corruption present significant barriers to business in Pakistan . .
Obtaining licenses and public jobs are also possible by irregular payments and bribes corruption could also be found in local government . Corruption is widespread in Pakistan’s administration; there is evidence that the devolution of certain authorities from the federal to the provincial level has led to an increase in corruption .
Low level wages ,lack of merit based promotion and lack of accountability are the main reasons behind corruption in Pakistan. Corruption at lower level is often considered as normal by many people in Pakistan .
Companies indicate that bribes and irregular payments in the process of making tax payments are very common . The Pakistani tax administration is highly suspected to irregular payments and other corruption .. Bribes and irregular payments in the process of making tax payments are very common .payment of taxes in advance is also a a complaint by people. Improper taxation policies are a concern for foreign investors; federal and provincial tax regulations also create problems for businessmen .
There is massive corruption in Pakistan’s customs administration. Businesses say that irregular payments and bribes are common .The import procedures is also insufficient efficiency of the clearance process as poor and the time predictability.
The costs for businesses to comply with Pakistan’s import requirements are significantly higher than the regional average, and the time required is also higher than elsewhere in the region (DB 2018).
There is a huge corruption in public procurement sector in Pakistan . Favoritism in the decisions and Diversion of public funds of public officials are common. Irregular payments and Bribes in the process of government contract award process are common . There is a widespread Corruption inside national railway operator Pakistan Railways.
Freedom of expression is protected by the constitution but can be subject to restrictions in practice . While criticism of the government is generally allowed. Journalists reporting on sensitive issues, including civil-military tensions, have faced threats, The Freedom of Information Ordinance guarantees any citizen access to public records but is criticized for having too many exceptions, but in practice, there is no access to information on government spending, public procurement, and party finances.
- World Economic Forum: Global Competitiveness Report 2017-2018.
- UNODC: UNCAC Implementation Review Pakistan 2017.
- The Statesman: “Pakistan Lawmakers Rushing to Pay Higher Taxes after Panama gate”,
- Transparency International Global Corruption Barometer
- The News: “DHA City Scam: NAB .Confiscates 1,300 Kanal Land”,
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