The latest IMF report warns that Pakistan is losing up to 6.5 percent of its GDP to corruption, noting that the Rs5.3 trillion recovered over the past two years represents only a small portion of the overall economic damage. The assessment states that corruption remains widespread across all tiers of government, limiting economic growth, deterring investment, and weakening public trust in state institutions.
The IMF highlights how elite groups continue to shape policymaking for personal benefit, citing the sugar industry as a key example where influential players manipulate regulations, pricing, and markets. These practices distort competition, burden consumers, and reinforce unequal economic power structures.
According to the report, judicial inefficiency, overlapping oversight bodies, and weak accountability further intensify corruption risks. Fragmented institutions, inconsistent enforcement, and a lack of transparent systems prevent meaningful progress in combating misuse of public resources.
The IMF estimates that implementing governance reforms over a five-year period could increase Pakistan’s GDP by 5 to 6.5 percent. The suggested reforms include transparent judicial appointments, stronger anti-corruption frameworks, improved regulatory oversight, fair enforcement of laws, and greater transparency in public financial management. The report emphasises that restoring public trust and ensuring institutional accountability are essential for sustainable development and long-term economic stability.
