‘Elite capture’: How Pakistan is losing 6 percent of its GDP to corruption
Summary
The International Monetary Fund (IMF) report highlights corruption in Pakistan as a major factor causing economic difficulties, where a small group of elites benefit at the expense of public policy. The report explains that improving governance could significantly boost Pakistan's economy. Corruption is prevalent across all government levels, but especially among influential groups connected to economic sectors.Key Facts
- Corruption causes Pakistan to lose around 6% of its GDP.
- The IMF's "Governance and Corruption Diagnostic Assessment" highlights weak institutions and failure to uphold the law.
- Corruption benefits a small elite group by influencing public policy.
- Enhanced governance could improve the country's GDP by 5% to 6.5% in five years.
- Pakistan's GDP was $340 billion in 2024.
- The IMF has assisted Pakistan 25 times since 1958, showing ongoing economic struggles.
- Pakistan ranks low globally on governance indicators, particularly in controlling corruption.
- "State capture," where corruption becomes the main form of governance, is a significant issue.
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