Tahir Maqsood Chheena
Corruption in Pakistan remains one of the most critical barriers to economic development, undermining public trust in state institutions and damaging the governance landscape. With the country ranking 133rd out of 180 countries on the Corruption Perception Index and a rule of law score of just 0.38, Pakistan’s corruption problem is deeply ingrained. This widespread issue hampers economic growth, deters investment, and perpetuates a culture of impunity, leaving citizens frustrated and disillusioned with the state’s ability to address corruption effectively.
The term “white-collar crime,” coined by sociologist Edwin Sutherland in 1939, refers to financially motivated, non-violent crimes committed by individuals in positions of authority and trust. White-collar criminals are typically found in the financial, corporate, or legal sectors, where they exploit the system’s weaknesses for personal gain. Sutherland’s research challenged the prevailing notion that crime was primarily committed by individuals from lower socioeconomic classes. He argued that those in power, who could manipulate systems, were just as likely, if not more so, to commit crimes.
Building on Sutherland’s work, sociologists like Donald Cressey expanded on the concept by introducing the idea of “rationalization,” explaining how white-collar criminals often justify their actions. These offenders often believe their crimes are acceptable or unlikely to be discovered, highlighting a psychological element to these crimes that complicates prevention and enforcement. This rationalization not only allows criminals to engage in illegal activities but also perpetuates a system in which they feel protected, further complicating efforts to tackle white-collar crime.
The social and financial consequences of white-collar crime can be devastating. While these crimes are non-violent, their impact extends far beyond the individuals directly involved. These offenses can result in massive financial losses, damage the reputation of critical institutions, and erode public trust in governance. Yet, Pakistan’s existing accountability mechanisms, such as the National Accountability Bureau (NAB), the Federal Investigation Agency (FIA), and provincial Anti-Corruption Establishments (ACE), have failed to produce the desired results, raising concerns about the effectiveness and integrity of these institutions.
One disturbing trend is the declining performance of NAB in recent years. From a conviction ratio of 58.2% in 2018, it fell to just 32.1% in 2022, signaling significant inefficiencies in securing convictions. Furthermore, the number of references filed by NAB has dropped sharply, from 198 in 2018 to just 30 in 2022. These figures suggest that NAB’s focus has shifted from prosecuting serious corruption cases to handling less impactful cases, which raises questions about its commitment to tackling high-level corruption effectively. While NAB claims to have recovered over Rs 4 trillion in just six months, most of these recoveries were from low-profile cases of misuse of authority, which do little to address the systemic corruption that plagues the country.
Similarly, the FIA has struggled with fluctuating conviction ratios, averaging around 40%. In 2020, the agency achieved its highest conviction rate of 64.8%, but this figure plummeted to just 25.3% the following year. The number of challans filed—documents prepared for prosecution—has also varied significantly, from a high of 772 in 2021 to just 281 in 2018. These inconsistencies point to a lack of continuity in the FIA’s efforts to hold corrupt individuals accountable, further deepening skepticism about the country’s commitment to fighting corruption.
This decline in conviction rates and the reduction in prosecutions are indicative of the gaps within Pakistan’s accountability mechanisms. The lack of consistency and effectiveness in these agencies is alarming and calls for urgent reforms. The existing structures must be strengthened, both in terms of capacity and independence, to ensure they can effectively address corruption at all levels of society.
Beyond the immediate operational issues of accountability agencies, the broader socio-economic consequences of corruption are equally worrying. White-collar crimes hinder economic growth by stifling investment, eroding public confidence in institutions, and exacerbating the country’s already fragile economic conditions. The continued failure to tackle corruption at the highest levels undermines efforts to improve governance, reduce poverty, and create a more equitable society.
The legal framework in Pakistan for combating corruption has undergone various changes, from the Prevention of Corruption Act of 1947 to the establishment of NAB under the National Accountability Ordinance (NAO) in 1999. However, despite these legal advancements, enforcement agencies face numerous challenges, including political pressure, resource constraints, and procedural delays. These factors severely undermine the effectiveness of anti-corruption measures, making it difficult to hold powerful individuals accountable. Moreover, public apathy toward corruption further complicates the situation, as many citizens view it as an ingrained part of the system, rather than a challenge to be confronted.
The amendments to legislation, such as the Anti-Money Laundering Act of 2010, reflect efforts to strengthen Pakistan’s legal infrastructure to address white-collar crimes. However, these reforms are only effective if enforcement agencies are independent, adequately resourced, and empowered to act without interference. Unfortunately, political influence often hampers the efforts of these agencies, further entrenching the problem.
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Pakistan’s judiciary plays a critical role in enforcing anti-corruption laws, with several high-profile rulings leading to the disqualification and conviction of influential political figures. However, the selective enforcement of these laws has raised concerns about fairness and impartiality. Military and judicial elites often evade scrutiny, creating a perception of inequality in the judicial process. This selective approach undermines the credibility of anti-corruption efforts and further fuels public distrust in the system.
Moreover, corruption is often weaponized for political leverage in Pakistan, with institutions like NAB being used to target political opponents while shielding allies in power. This politicization of anti-corruption efforts compromises the independence and credibility of these institutions, impeding meaningful reform. The continued use of corruption as a political tool only deepens the cynicism surrounding the country’s governance system.
Addressing corruption in Pakistan requires a multifaceted approach. It is essential to implement comprehensive accountability mechanisms that differentiate between genuine and malicious actions. A clearer definition of corruption, along with measures to prevent conflicts of interest, is crucial to ensure that anti-corruption efforts do not impede economic development. Additionally, international cooperation plays a vital role in combating corruption, with countries needing to collaborate through bilateral and multilateral agreements to strengthen their anti-corruption frameworks.
To effectively combat corruption in Pakistan, the country needs a robust legal framework that addresses white-collar crime comprehensively. This includes legal innovations, more effective enforcement strategies, and the active engagement of the public in the accountability process. Fostering trust in the system and ensuring that corruption is no longer viewed as the “new normal” is essential to break the cycle of deviance that has become entrenched in Pakistan’s political and economic culture.
In conclusion, the pervasive corruption in Pakistan remains a significant obstacle to economic growth and social stability. While the country’s legal framework has evolved, enforcement agencies continue to struggle with political interference, resource limitations, and inconsistencies in their work. Without comprehensive reforms and a genuine commitment to tackling corruption, Pakistan will remain mired in a culture of impunity, where the powerful evade justice while ordinary citizens bear the brunt of a corrupt system.
