Pakistan graft survey echoes IMF warning on weak governance, public dissatisfaction

A money changer waits for customers as he sits on a bike beside a money exchange stall decorated with pictures of banknotes in Karachi, Pakistan, on September 30, 2021. (Reuters/File)
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Updated 09 December 2025
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Pakistan graft survey echoes IMF warning on weak governance, public dissatisfaction

  • Most Pakistanis say they were not compelled to pay bribes, but distrust remains high in anti-corruption efforts
  • PM Shahbaz Sharif calls report a recognition of his government’s efforts to fight corruption, promote transparency

ISLAMABAD: Governance weaknesses flagged by the International Monetary Fund (IMF) appeared to align with findings from Pakistan’s latest corruption perception survey, analysts said on Tuesday, as Transparency International Pakistan (TI-Pakistan) reported widespread public dissatisfaction with the state’s accountability mechanisms.

TI-Pakistan’s National Corruption Perception Survey (NCPS) 2025 found that 58 percent of respondents fully or partly agreed that the IMF program and Pakistan’s removal from the Financial Action Task Force’s grey list had helped stabilize the economy.

“Encouragingly, a majority of Pakistanis (66 percent) nationwide reported that they did not experience a situation where they felt compelled to offer a bribe to access any public service,” said the survey. “Sindh recorded the highest proportion of respondents paying a bribe to access public service (46 percent), followed by Punjab (39 percent), Balochistan (31 percent) and Khyber Pakhtunkhwa (20 percent).”

In this context, 77 percent said they were unhappy with the government’s anti-corruption performance.

However, Prime Minister Muhammad Shehbaz Sharif expressed satisfaction over the report in a statement, saying “a large majority of citizens said they did not face corruption during our government’s tenure” which is “recognition of our efforts to fight corruption and promote transparency.”

“It is highly encouraging that most citizens considered the government’s measures for economic recovery to be successful,” he said.

“We worked on a priority basis to establish a system grounded in merit and transparency across all sectors of government, and we are continuing to build on these efforts,” he added.

Economist and former finance ministry adviser Dr. Khaqan Najeeb said the survey highlighted the same structural weaknesses identified by the IMF’s Governance and Corruption Diagnostic, published on Nov. 20 at the international lender’s request, which said Pakistan suffers from “persistent and widespread corruption vulnerabilities” rooted in a state-dominated economy, weak regulatory capacity, and inconsistent enforcement.

“Transparency International Pakistan’s National Corruption Perception Survey does suggest progress in reducing low-level, day-to-day bribery, but it does not contradict the IMF’s governance findings,” he told Arab News. “Instead, it highlights that Pakistan’s real challenge lies in deeper, systemic weaknesses in transparency, oversight and institutional accountability.”

“While public perception has improved, it does not mean the underlying governance issues identified by the IMF have been resolved,” he argued, adding that addressing those will require sustained reforms, stronger institutions and consistent enforcement.

Political analyst Mazhar Abbas said the report was going to be used by the government to bolster its economic narrative.

“Survey reports have usually been tilted in favor of the government, and this report is no different,” he told Arab News. “The government will certainly use it to support its narrative of an improved economy, as the report states that a majority of respondents partially or fully agree that the government has successfully stabilized the economy through the IMF agreement and by exiting the FATF grey list.”

Abbas added it was difficult to either challenge or endorse the findings of the report without knowing who was interviewed and who the respondents were.

“The police have consistently been at the top of Transparency International’s corruption perception reports, whereas there may be other organizations where the frequency and volume of corruption are even higher,” he continued, adding that since the police are a public-dealing organization and consistently top the corruption perception index, it suggested that most respondents are from the general public, who may either lack access to or knowledge of corrupt practices in other organizations.

Islamabad-based social-sector development consultant Muhammad Qasim Jan said the survey should be seen as a barometer of public sentiment rather than an empirical measure of corruption.

“The National Corruption Perception Survey 2025 offers a sobering snapshot of how Pakistanis view corruption and accountability,” he told Arab News. “At the same time, the absence of basic methodological detail means the results should be interpreted with caution, especially when citing national percentages or making population-wide claims.”


Pakistan slashes power tariff for industries by Rs4.4 per unit to spur growth

Updated 12 min 40 sec ago
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Pakistan slashes power tariff for industries by Rs4.4 per unit to spur growth

  • The development comes as Pakistan seeks to boost exports to ensure economic recovery under a $7 billion IMF program
  • PM Sharif also announces lowering export refinance rate from 7.5 percent to 4.5 percent, and electricity wheeling charges to Rs9 per unit

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced a Rs4.4 ($0.014) cut in electricity tariffs for industrial consumers, saying the move is aimed at lowering production costs and spurring economic activity in Pakistan.

Manufacturers in Pakistan have long complained of high electricity price, i.e. Rs22.98 per unit, for industrial consumers, arguing that it has dampened industrial growth and made local products less competitive globally.

The reduction in power tariffs for industries is expected to lower production costs that will allow exporters to offer more competitive prices in international markets and increase profit margins through higher capacity utilization.

Addressing businessmen and exporters at a ceremony in Islamabad, Sharif said there was no alternative to export-driven economic growth and his government will devise all future economic policies in consultation with them.

“Four rupees and four paisas per unit are being reduced in electricity tariffs for industry,” the prime minister announced at the ceremony. “If it were up to me, I would reduce it by another 10 rupees, but my hands are tied.”

The development comes as Pakistan, which has long struggled with boom-bust cycles, seeks to boost foreign investment and increase exports as it navigates a long path to economic recovery under a $7 billion International Monetary Fund (IMF) program.

The prime minister said they have reduced the export refinance rate from 7.5 percent to 4.5 percent.

“I believe this is a very significant facility being extended to you,” he said. “God willing, it will help Pakistan’s exports rebound and it will certainly be of immense benefit, especially to those who need financing.”

During his address, Sharif also announced lowering wheeling charges for industries by Rs9 ($0.032) per unit, noting the country’s economy had stabilized, inflation had come down to single digits and the policy rate stood at 10.5 percent.

In Pakistan, wheeling charges refer to fees paid by electricity consumers and generators to use the national grid’s transmission and distribution network to move electricity from suppliers to end-users under the Competitive Trading Bilateral Contracts Market (CTBCM).

“I think this should help you sell your power to neighboring industries,” he told businesspersons at the event.