Rising Corruption in Karachi

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Corruption in Pakistan is not a new issue, but as of late it has had a detrimental effect on the country’s economic fortunes and its ability to attract foreign investment. A 2014 report by Transparency International Pakistan found over Rs. 8.5 trillion ($94 billion) was wasted due to corruption and bad governance from 2009-2013, during the previous administration led by the Pakistan People’s Party.  Pakistan currently ranks 126 out of 175 nations in Transparency International’s Global Corruption Perception Index, and lags behind neighboring countries in economic development due in part to rampant public sector corruption at both the national and provincial level.  According to Fasih Bokhari, former chairman of the National Accountability Bureau, five to seven billion rupees ($51 million to $72 million) are wasted per day due to corruption and overall inefficiency.

Major General Bilal Akbar, Director General of Pakistan Rangers, Sindh, a border security and law enforcement agency, estimated that over Rs. 230 billion ($2.3 billion) is illegally extorted or otherwise collected in Karachi each year.  General Akbar also stated that political party members, city and district government officials, and law enforcement personnel are complicit in these illegal activities, and that the money extorted is frequently used to fund terrorist and gang-related criminal activities.

While these reports of corruption raise many questions about the credibility of local and provincial administrations in Karachi and Sindh province, the provincial government has regrettably chosen to accuse General Akbar and the Pakistan Rangers of overstepping its boundaries. It remains to be see if other national government institutions, such as the Supreme Court, take action to address corruption-related issues.

This corruption report raises many questions leading to credibility and administration of the provincial and local governments. Regretfully, instead of using the report as the basis to initiate an inquiry, the provincial government has accused Rangers for crossing its limit by entering into a political domain. Now all eyes are on Supreme Court, if it will take notice of it and initiate action to form a bench to conduct an investigation and give judgment in the larger national interest.

Moin Fudda is Country Director for CIPE Pakistan.

Published Date: August 04, 2015