Brief history[edit]

"Corruption is a curse in India and amongst Muslims, especially the so-called educated and intelligentsia. Unfortunately, it is this class that is selfish and morally and intellectually corrupt. No doubt this disease is common, but amongst this particular class of Muslims it is rampant."

— Pakistan founder Jinnah's letter to Ispahani,
6 May 1945
[12]

The Dominion of Pakistan was created as a result of the Pakistan Movement in 1947. Upon gaining independence, Pakistan inherited a strong bureaucracy and army from the British Raj. There has since been no major change in this bureaucratic set up since it was first implemented by British, albeit reforms were proposed by the Musharraf regime in 2007. This has led many to speculate that "corruption has seeped into the higher echelons of bureaucracy" where "corruption cases are [mostly] reported against irregular and ex-cadre appointments".[13] It was by the late 1960s that the bureaucracy started being portrayed as an "instrument of oppression".[14] In multiple reports published by the World Bank, the Pakistani bureaucracy was seen as being rife with corruption, inefficient and bloated in size with an absence of accountability and resistant to change.[15][16][17][18]

Bureaucracy and secession of East Pakistan: 1954–1971[edit]

Bhutto introduced the nationalisation programme in order to revitalise the economy but these policies were used by certain individual and groups to accumulate gain.

The bureaucratic influence was strong in the western provinces of Pakistan while the eastern province retained a majority of the population.[19] On 22 November 1954, bureaucratic administrators moved a resolution to merge the four western provinces into a single unit called West Pakistan. This led to public outcry in East Pakistan who felt that they were being misrepresented and systematically marginalised by the land-owning Punjabi Muslim elites who enjoyed higher bureaucratic positions at the time.[20] This led to the secession of East Pakistan into the separate nation state of Bangladesh and lay witness to the corrupt malpractices of the Punjabi elite in West Pakistan. Punjabis argued that East Pakistan's majority was a consequence of the high percentage of Bengali Hindus in the province[21] who were not involved in the state's decision-making processes. Thus, the Punjabi landowners remained largely unrepentant of their desires to "[secure] their own hegemony"leading to the loss of the eastern province in 1971.[22][23]

Nationalisation politicises economic planning: 1973–1977[edit]

After Zulfikar Ali Bhutto came into power in 1973, he introduced a planned economic system to revitalise the stagnant economy. This led to the introduction of the nationalisation programme bringing entire private industrial corporations under the government ownership.[24] In 1974, Bhutto cancelled the fourth five-year plans bypassing the recommendations of the Planning Commission, focusing entirely on broadening government control over private business enterprises. In doing so, Bhutto's government began the politicisation of economic planning.

Political interference opened doors for corrupt political practices to seep into the nation's economic planning processes. The nationalisation programme badly affected the reputation of the Pakistan Peoples Party. Accumulated losses of up to Rs 254 million were reported with several instances of over-staffing and inefficient productivity in heavy mechanical industries.[25] By 1976, the state had been hijacked by group and individuals trying to accumulate wealth by redistributing resources from public enterprises to private individuals. Public enterprises "became a device to extend political patronage to those that the regime favoured, to pay political debts, or to accumulate power".[26]

Denationalisation and political favouritism: 1978–1988[edit]

Bhutto's nationalisation programme lost its appeal towards the end of his government's term and the demand for denationalisation gained more currency. The successive government of military chief and president Muhammad Zia-ul-Haq released a whitepaper that led to the creation of a commission under Pakistan Industrial Credit and Investment Corporation (PICIC) to reverse earlier nationalisation efforts.[27] Not much was achieved in this regard and only three industries, including future prime minister Nawaz Sharif's conglomerate Ittefaq Group of Industries, were ever denationalised and returned to their owners. Many argue that Sharif was favoured in this process because he was a political protιgι of the military dictator at the helm.[28][29]

Unprecedented political corruption: 2008–2013[edit]

Yousaf Raza Gillani became the first head of state to be convicted while holding office and later disqualified on charges of loan defaulting.

In 2012, Transparency International (TI) calculated that Pakistan had lost more than Rs 8.5 trillion (US$ 94 billion) in corruption, tax evasion and bad governance in the PPP-led coalition government from 2008 to 2013, and from 2013 to 2017 while Nawaz Sharif in power have severe allegations of corruption. Adil Gillani, an advisor for TI Pakistan observed that if Pakistan checks the menace of corruption and ensures good governance, it would not require a single penny from the outside world. The 2008–2013 PPP-led coalition government is criticised as being the most corrupt in the country's history.[30] The free and powerful local media in Pakistan exposed various cases of corruption during the government's tenure including cases of bribery and corruption in government-owned enterprises like Pakistan International Airlines[31] and Pakistan Railways.[32]

On 29 March 2012, a civilian resident of Johar Town Lahore, Tariq Ahmed, filed a court petition in the Lahore High Court, seeking to hear the case of disqualification of prime minister Yousaf Raza Gillani.[33] The plea was filed in the High Court in which the petitioner took the stance that "Fauzia Gillani— spouse of prime minister Gillani received loans of millions of rupees from the Agriculture Development Bank Ltd (ADB) and the National Bank of Pakistan for the two mega-corporations owned by the Gillani family of which Fauzia Gillani served both megacorporations as executive director. None of the loans of millions of rupees were paid back to the banks.[33] When the disqualification petition was put to rest by the ruling of the Speaker of the National Assembly Dr Fehmida Mirza citing that the petition did not hold ground, Gillani was convicted on the charges of Contempt of Court. Gillani became Pakistan's first prime minister to be convicted while holding office[34] and was later sentenced and disqualified. Gillani is prudently criticised for a prolonged era of stagflation, in which fundamental economic problems were ignored, government was mismanaged and corruption was endemic.

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