IMF Report on Pakistan: The International Monetary Fund (IMF) has issued a harsh report on Pakistan, saying corruption is so deeply rooted that it has become part of governance, politics, and the economy. The 186-page report says corruption is steadily rising and is a major reason for the country’s worsening economic situation. It also states that this problem has reached the highest levels of power, including the offices of Prime Minister Shehbaz Sharif and Army Chief Asim Munir.
What the reports say – Elite Capture
IMF report identifies the most damaging corruption as ‘elite capture’- A select group of people with power and influence controls the country’s major economic decisions and resources. These elite groups also include many institutions closely linked to the government itself.
Between January 2023 and December 2024, ₹5.3 trillion was recovered in corruption cases in Pakistan, but the IMF clearly states that this amount represents only a small fraction of the actual losses. Pakistan lacks complete records on this.
The IMF team writes bluntly that “corruption continues to hinder Pakistan’s macroeconomic and social development by diverting public funds, distorting markets, impeding fair competition, eroding public trust, and constraining domestic and foreign investment.” It cites two decades of governance indicators that place Pakistan among the worst performers globally in controlling corruption.
IMF on Judiciary And Bureaucracy
The IMF report also strongly criticised the Pakistani judicial system. According to IMF, courts are slow, vulnerable to political pressure, and have poor justice delivery capabilities. Consequently, people distrust the courts to enforce contracts, protect property, or obtain justice. This makes investors thinking of twice before investing in Pakistan. Investors also become reluctant to invest in Pakistan. Surveys across the country show that the public considers the courts and police to be the most corrupt, and 68% believe that anti-corruption institutions are used for political vendettas.
Pakistan will remain mired in crisis
The IMF has specifically questioned the Special Investment Facilitation Council (SIFC), which makes key investment decisions. According to the report, this institution has extensive powers, but its transparency and accountability are extremely weak. For the first time, the IMF has demanded that the SIFC’s full annual report be made public—detailing all concessions, tax exemptions, and approved projects.
