Pakistan's institutions plagued by corruption, military key source of institutional rot: Report

Islamabad, Aug 27 (IANS) Pakistan’s institutions are riddled with corruption, with the military standing out not only for its immunity from scrutiny but because of its deep-rooted involvement in the systemic rot, a report cited on Wednesday.

It said that the Pakistani military has arguably emerged as the most entrenched source of institutional rot, a corrupt institution protected by power, maintained through secrecy, and enabled by an absence of civilian oversight.

"The Pakistan Air Force's Shaheen Foundation faced scrutiny after its joint venture with South Africa's Hollard Group collapsed due to corruption. The Pakistan Navy was embroiled in the Karachi affair, where €50 million in commissions were allegedly paid to senior officers and political leaders," a report in the 'Asian Line' detailed.

"The Fauji Foundation sold Khoski Sugar Mill in 2004 for Pakistani rupees (PKR) 300 million despite receiving a higher bid of PKR 387 million. Between 2004 and 2008, two army generals were implicated in a Rs 1.8 billion loss to the National Logistics Corporation through speculative investments," it added.

According to the report, in February 2025, more than $845 million allocated as aid for Pakistan's development projects were suspended after revelations of rampant corruption, financial mismanagement, and bureaucratic inefficiencies. It said the United States Agency for International Development (USAID), a significant contributor, had funded projects in the country for decades.

“Yet, despite the scale of foreign assistance, the outcomes have been dismal. Investigations revealed that a significant portion of aid never reached its intended beneficiaries. One of the most egregious examples is the proliferation of ‘ghost schools’, institutions that exist only on paper, allowing corrupt officials to siphon off millions in salaries and operational expenses," the report stressed.

It highlighted that globally, Pakistan ranks 103rd in oversight, 106th in government transparency, and 120th in controlling corruption. Citing Transparency International, the report noted that 35 per cent of Pakistanis believe corruption has increased over the past year, and one in four citizens pay bribes for basic services. Corruption in law enforcement agencies and judicial bodies weakened public trust in the justice system.

"Corruption has become a stranglehold on Pakistan’s industrial and innovative potential, stifling growth across sectors and discouraging legitimate enterprise. Numerous studies confirm this grim reality: Pakistan ranks a dismal 173 out of 197 global markets in a corruption risk index developed by TRACE and the RAND Corporation," the report emphasised.

"For Pakistani firms seeking entry into highly regulated export markets, corruption is not just a domestic nuisance, it's a strategic liability. Bribes paid to foreign officials to facilitate production or distribution can violate international anti-bribery laws, jeopardizing partnerships with Western firms and undermining global competitiveness," it further added.

--IANS

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