Pakistan's Corruption Tsunami: By Tariq Waseem

PAKISTAN’S CORRUPTION TSUNAMI CURSE, CONTOURS, CAUSES, COST, CHALLENGE AND CURES

M. TARIQ WASEEM

i

CONTENTS

CHAPTER – I: CURSE OF CORRUPTION

1

CHAPTER – II: CONTOURS OF CORUPTION

5

14

CHAPTER – III: CAUSES OF CORRUPTION

21

CHAPTER – IV: COST OF CORRUPTION

36

CHAPTER –V: CHALLENGE OF CORRUPTION CONTROL

58

CHAPTER –VI: CORRUPTION CURES

ANNEXURES

ANNEXURE-I: CORRUPTION PERCEPTIONS INDEX

ANNEXURE-II: PAKISTAN’S COMPARATIVE STRATEGIC RANKINGS

ANNEXURE-III: ANTI-CORRUPTION LINKS

ANNEXURE-IV: FINANCIAL SECRECY INDEX-2015

155

162

164

165

ii

DEDICATED To the microscopic minority of the public representatives, public servants as well as private business class and industrialists of Pakistan who show exemplary integrity, morality, honesty, up-rightness and incorruptibility despite opportunities to exploit, fears, allurements, temptations, offers, threats, need and greed.

iii

PREFACE Corruption is being recognized as one of the world’s biggest challenges. It is a big hindrance to attain sustainable growth and seriously impacts the poor population because it curbs economic growth and competition.

Pakistan’s future is ambiguous and confusing as its present and past. There is no doubt that Pakistan is high in the list of failed states. It has been an ill governed state or a failing nation for most of the period of its history. However, it is not a “Country on the brink” but certainly it is a nation of serious mis-governance and corruption.

This Book discusses the enormous challenge of corruption control in Pakistan based on data of different years or period, which do not affect the main conclusions of the analysis.

Probably, no other issue is more serious than corruption or terrorism or law and order is of equal significance.

The Book provides a large number of measures for dealing with corruption which is a major objective of this book and many of these are, however, not easy to implement for the Government or other concerned agencies. The author, however, regrets for any error in this Book, due to oversight or any other reasons as it is a sole adventure in a turbulent country.

If this Book helps in any manner in containing corruption or further halting its growth, it should be considered a great achievement and I hope the Government and the concerned Anti-Corruption agencies will seriously start taking steps to place Pakistan on the Fast Lane of the Anti-Corruption Motorway.

M. TARIQ WASEEM

iv

All Rights Reserved with:

M. Tariq Waseem

1st Edition:

July, 2017

Front and Back Cover Selection:

Rifat Waseem

No. of Copies:

Limited and only for those who matter in this poor, populous, problematic and pathetic country and the Almighty has endowed them the opportunity and authority to initiate action on the humble suggestions given in this Book for speedy drive on the Anti-Corruption Highway.

Price:

It is a Public Service Message on a subject of highest priority, hypercritical significance and grave consequences for Pakistan and hence is not priced.

Email:

gulroo@hotmail.com

v

CHAPTER – I

CURSE OF CORRUPTION DEFINITION OF CORRUPTION The origin of the word “Corruption “is from a Latin verb “corrupts” meaning, “to break”.

Literally, it means “a broken object”. In other words, corruption means “the misuse of entrusted power for private benefit.” Conceptually, corruption is a form of behavior, which is not a part of ethics, morality, tradition, law and civic virtue.

The term corruption has various definitions. The United Nations Manual on AntiCorruption, the Transparency International and the international financial institutions like the World Bank and Asian Development Bank broadly consider corruption as “abuse of public office for private gains “The National Anti-Corruption Strategy (NACS) of Pakistan has defined corruption as “a behavior on the part of office holders in the public or private sector whereby they improperly and unlawfully enrich themselves and/or those close to them, or induce others to do so, by misusing the position in which they are placed.”

The most comprehensive definition of corruption has been prepared by the Global Infrastructure Anti-Corruption Centre (GIACC) which says: “In its wider sense, corruption includes bribery, extortion, fraud, cartels, abuse of power, embezzlement and money laundering.”

We may add to this list: allowing import and export of illegal goods and giving unfair advantage to one not necessarily at the cost of other persons or the state which may be in cash or kind or both at least of some worth.

An act of corruption is committed when a person offers some benefit to another as an incentive for him to act dishonestly, or somebody tries to benefit from another person, which is not due according to the law. Corruption is also defined as an act with the deliberate intention to give some advantage inconsistent with the official duty and rights of others. In other words, corruption means anything wrong done from the moral or financial angles.

It is important to note that corruption was mentioned as one of the major ailments afflicting territories constituting Pakistan by the founder of the country, Mohammad Ali Jinnah, in his first address to the Constituent Assembly on 11thAugust, 1947. He said: “One of the biggest curses from which India is suffering—I do not say that other countries are free from it, but I think our condition is much worse—is bribery and corruption. That really is a poison. We must put that down with an iron hand and I hope that you will take adequate measures as soon as it is possible for this Assembly to do so”.

So corruption problem is as old as Pakistan. In face, Pakistan has inherited this problem at the time of its birth. It is a birth defect disease when Pakistan was born and so not new.

Concern about corruption—the abuse of public office for private gain—is in face as old as the history of a government. In 350 B.C.E., Aristotle suggested in The Politics that “. . . to protect the treasury from being defrauded, let all money be issued openly in front of the whole city, and let copies of the accounts to be deposited in various wards.”

Corruption is rampant in Pakistan. It has touched every sector or section of our system.

There is no office and no unit of public sector where it has not reached. It is enormous in size and in intensity. It has touched every organ of the state and no sector can claim it to be entirely free from corruption. Pakistan is seriously suffering from this disease, crime and malaise.

1

The individuals who carry out corruption acts include government officials, employees of the project’s owners, project financers, traders, contractors, consultants, sub-contractor, suppliers, etc. As a result of corruption, losses and damages to the project or the institution or department include theft and waste of funds, enhancement in the project cost, increase in repairs and maintenance cost because of defective use of inputs, increase in operating cost and as whole, the public suffers because of inadequate and dangerous quality of the project, etc.

Corruption is not confined to the government or public sector as the private sector individuals are also involved wherever and whenever the opportunities exist. The acts of corruption are committed where the proprietors of the business are not physically looking after the enterprise.

In private sector units such as factories or hospitals, the staff is equally corrupt if the owner is not physically supervising the facility for most of the time. The staff, for instance, will make purchases at higher rates, or sell the products at a lower price as against shown in the documents etc.

Corruption is rife in developing countries while corruption is vertically little in most of the industrialized world. However, there are a few examples like Botswana and Chile where corruption is lower than some of the countries in Europe.

Corruption elimination is a gigantic challenge for any country that is poor, inequitable and soft state, etc. It takes two to commit an act of corruption – the briber and the bribed. Corruption elimination is an extremely challenging assignment for any government. It is a global issue with challenge varying in extent or in degree from country to country.

Corruption is an integral part of our system – both political and economic. Favoritism, nepotism, misappropriation of public fund fraud, misuse of power, etc. are parts of a Pakistani’s daily life. It is a way of life and it is now an essential part of the country’s culture. It encompasses the ideological, moral and ethical values of the society.

Corruption and lack of transparency are two major hurdles that adversely affect Pakistan’s growth drive and inflict terrible pain and sufferings on the man-in-the street. These illegal and unethical practices are causing losses of billions of rupees and transfer funds from the Government sector into private hands, lack of growth of infrastructure and inadequate social services, etc. We have to first curtail corruption and then substantially eliminate it from Pakistan to enable Pakistan achieve economic breakthrough, otherwise, the dream of a prosperous Pakistan will not become a reality.

Corruption is said not only to produce poverty directly but it also has direct consequences on economic growth and governance capabilities which in turn produce poverty, or in other words: Increased corruption è reduced economic growth Income in-equalities/reduced government influence è increase in poverty.

Corruption has devastating effect on economic growth by discouraging foreign aid, local and foreign investment and entrepreneurship, lowers quality of public infrastructure, reduces tax enhancement, distorts the public sector investment priorities, raises income inequalities and thus increases poverty which in turn results in enhancing corruption levels.

Not only Pakistan but also in most developing countries, corruption is widespread and part and parcel of daily life. Our society has learnt to live with it and even taking it is a part of our natural life and so it has become a part of our culture and society, our daily life and our bread and butter.

It is now so common in our daily life that if some official does your job without asking for favor in return, you feel surprised or embarrassed. Corruption appears to have become a legal form of payment. Without providing bribe, hardly anyone seriously attends to your work in public institutions.

2

The Holy Prophet, Hazard Muhammad (Peace Be Upon Him) said: “Beware of bribery for verily it is sheer infidelity and the briber will not even smell the fragrance of Paradise”.

(Bihar al-Anwar V104, P: 274, No. 12).

Pakistan is an overwhelmingly Muslim country. It has the second largest Muslim population in the World. But, the basic teachings of Islam, which include strong opposition to corruption, are so widely ignored.

The corruption history goes back to the early days of Pakistan’s independence when the people started filing false claims to get property allocated to them in lieu of property left behind by them in India but none of the Prime Ministers / Presidents were directly or indirectly blamed for involvement of any kind of corruption in the early period of Pakistan’s history-Liaqat Ali Khan, Khawaja Nazamuddin, Muhammad Ali Bogra, I.I.Chundrigarh, Ch. Muhammad Ali, Hussain Shaheed Suharwardy, Feroze Khan Noon, Ayub Khan and Z.A. Bhutto. However, thereafter, during the Ziaul Haq decade and two tenures of Nawaz Sharif and Benazir Bhutto, the corruption level in Pakistan went up substantially. Later, Pervaiz Musharraf took up the anticorruption drive seriously through the establishment of the NAB until the proclamation of the infamous National Reconciliation Ordinance that aimed at withdrawing a large number of corruption cases in December, 2009. The NRO was in fact, a National Revenge Ordinance.

However, after the induction of the PPP Government, the corruption touched new peak, as everybody from top to bottom appeared to be involved in this dirty game. Now the question was: who is more corrupt?

According to the Transparency International CPI, 2010, out of 55 members of OIC countries, only one Muslim country, Qatar, figured in the top 20 corruption clean countries followed by UAE at 29th position, Brunei 38th, Oman 42nd, Bahrain 48th and Jordan 51st. Generally speaking, only the rich Islamic Countries were better placed in this ranking. Religion Islam appears to have insignificant role in the game.

The CPI, 2012, award for the world’s most corrupt countries jointly went to Afghanistan, North Korea and Somalia followed by Sudan, Myanmar, Uzbekistan, Turkmenistan, Iraq, Venezuela and Haiti with the cleanest countries in Scandinavia anyway.

As per the 2013 Corruption Barometer, the top three “Ps” of corruption are Police, Public Servants and Political Parties followed by legislatures, medical services, judiciary, education system, and NGOs and religious group which were found to be the least corrupt followed by the military and media.

Corruption is said to be the biggest killer in the world and not poverty or TB etc.

The subject of corruption is under investigation of society, economists, political scientists, historians, public administrators, politicians and lawyers etc. It has been addressed as a cancer.

Corruption is both an international & national curse. It exists in all countries and the only difference is in the degree of corruption. Various studies have indicated that it existed in the ancient world. It encompasses every sector of the country and economy in every country and thus inhibits its economic growth. It is considered to be the single biggest obstacle to economic growth. The impact of corruption is, however, more damaging in Pakistan and other developing countries than in the western or developed countries.

A study by Hafeez ur Rahman and Amjad Naveed, “Determinants of Corruption and its Relation to GDP” in “Journal of Political Science”, 2007, found the main determinants of corruption are real GDP per capita, secondary school enrollment, public spending on education, unemployment rate and foreign direct investment. It is also concluded generally that low income, densely populated, lack or insufficient democracy, weak judicial system and low wages of bureaucrats are responsible for corruption and possibility of getting caught and punished is not really high.

3

Corruption is such a big menace that it is a million times bigger than the Everest and deeper than the seas, and the same way, corruption is growing in our body and a DNA Test should confirm it.

According to the World Bank President, Jam Yong Kim, “Every dollar a corrupt official or a corrupt businessman person puts in their pocket is a dollar stolen from a pregnant woman who needs health cares or from a girl or boy who deserves an education or from communities that need water, roads and schools.� (Address on December 19, 2013)

4

CHAPTER – II

CONTOURS OF CORUPTION This Chapter includes the following: 1.

2.

3.

4.

1.

Broad Forms of Corruption Examples of Corruption Kinds of Corrupt People Corruption Examples from Pakistan

Broad Forms of Corruption

According to Anwar Shah and Mark Schacter in their paper “Combating Corruption: Look before You Leap”, “ in Finance and Development”, December, 2004 corruption is not manifested in one single form: indeed it typically takes at least three broad forms. a) Petty, administrative or bureaucratic corruption Many corrupt acts are isolated transactions by individual public officials who abuse their office, for example, by demanding bribes and kickbacks, diverting public funds, or awarding favors in return for personal considerations. Such acts are often referred to as petty corruption even though, in the aggregate, a substantial amount of public resources may be involved. b) Grand corruption The theft or misuse of vast amounts of public resources by state officials—usually members of, or associated with, the political or administrative elite—constitutes grand corruption. c) State capture / Influence peddling Collusion by private actors with public officials or politicians for their mutual, private benefit is referred to as state capture. That is, the private sector “captures” the state legislative, executive, and judicial apparatus for its own purposes. State capture coexists with the conventional (and opposite) view of corruption, in which public officials extort or otherwise exploit the private sector for private ends.

It is also known that corruption is country-specific; thus, approaches that apply common policies and tools (that is, one-size-fits-all approaches) to countries in which acts of corruption and the quality of governance vary widely are likely to fail. One needs to understand the local circumstances that encourage or permit public and private actors to be corrupt.

Finally we know that if corruption is about governance and governance is about the exercise of state power, then efforts to combat corruption demand strong local leadership and ownership if they are to be successful and sustainable. [Gurgur, Tugrul and Anwar Shah, 2002, “Localization and Corruption: Panacea or Pandora’s Box?”, in Ehtisham Ahmad and Vito Tanzi, eds., Managing Fiscal Decentralization, (London and New York: Rutledge Press), pp. 46-67].

5

Names of Corruption Corruption includes the following names or wrong doings by both public and private sectors personnel: fraud, bribery, nepotism, cronyism, misappropriation, money laundering, commission, sharing, jobbery, misdirection of public funds, speed money, extortions, self-raise, free sanctions and misuse of privileges, facilities and positions, palm greasing, money coming from above, kickbacks, underhand dealing, selective accountability, under-invoicing and overinvoicing of imports and exports, tax evasion ,establishing offshore companies, miss declaration of income and wealth statements , nonpayment of bills and dues, abuse of power, extortion, collusion, deception, cartels, land grabbing, hoarding, smuggling, profiteering, creating artificial shortage, accepting facilities without payments or misusing them, stealing and non-depositing gifts given by foreign dignitaries, tampering gas, electricity and water meters etc.

2.

Examples of Corruption

Not all kinds of corruption by the Government officials are at the cost of the government, e.g., bribing a police, jail, land transfer, health and education official in order to get some larger illegal favor and admission decision in a college. In such cases, the funds transfer is involved from a private person to a government official and the government is not directly affected, although it harms the government or institution efficiency etc.

Khalid Hashmani in his article, titled “Corruption in Pakistan hurts common people and breeds extremism� posted on Indus Asia Online Journal (IAOJ) on 23-10-2010 provides a list of the following examples of corruption in Pakistan: 1.A government official or government Minister or his/her business partner receiving in exchange for awarding a contract, job, promotion or approving invoices for payment (an example that involves Bribery and Abuse of Power and may involve Collusion).

2.A policeman receiving money to drop charges against someone or receiving bribe from someone to arrest another person (an example that involves Bribery and Abuse of Power and may involve Collusion and Extortion).

3.A political party leader of a party in power ordering police to arrest a political opponent until that opponent supports that political leader (an example that involves Abuse of Power and Collusion and Extortion).

4.A medical doctor using supplies received for use in a public hospital uses them in his private practice (an example that involves Abuse of Power, Fraud, and Embezzlement).

5.A military General receiving commission to be deposited in an overseas bank account to facilitate procurement of military equipment (an example that involves Bribery, Abuse of Power, Fraud, Deception, Collusion and Extortion).

6.A contractor who uses sub-standard materials in the construction of a large public projects such a university building, a road by-pass, or a village road.

7.An inspecting engineer who receives bribe to ignore the use of defective material and/or workmanship and approves the project for payment.

8.A treasury official who receives money to pass contractor invoices knowing that inspection certificates lacks all required approvals (an example that involves Bribery, Abuse of Power, Fraud, Deception, Collusion and Extortion).

9.A senior manager in a public or private organization giving a job to a friend or relative bypassing a proper selection process (an example that involves Abuse of Power and Trading-in-influence).

6

10.A senior official threatening and/or coercing a junior official to support his/her position (an example that involves Extortion and Abuse of Power).

11.A elected and appointed officials conspiring to sell government prime land to friends, relatives or business partners at much lower price with considerable loss to government Treasury (an example that involves Abuse of Power, Fraud, Deception, and Collusion).

12.A teacher who rarely a goes to school to teach but collects his/her salary regularly. A bad village leader (wadera) illegally occupies a school and uses it as guest house (an example that involves Bribery, Abuse of Power, Fraud, Deception, and Collusion).

13.An international oil or gas company that instead of investing the contract-mandated percentage/amount on improving education, health, and social services of local people, uses that money to secure favors from government officials and local chieftains (an example that involves Bribery, Fraud, Deception, and Collusion).

14.Senior Managers of private company or a government autonomous entity that contrary to the commitments made to local people and/or provincial laws, hire much of their staff from their home provinces instead of offering jobs and on-the-job training opportunities to local people, even though local areas suffer a very high unemployment rate (an example that involves Abuse of Power, Trading in Influence, Deception, and Collusion).

15.An ordinary citizen and Electric Company Inspection Employee who pays and receives bribe respectively to allow stealing of electricity illegally (an example that involves Bribery, Abuse of Power, Fraud, Deception and Collusion).

16.A bank manager, bank employee, relative, or associate who continues to move large amount of bribery cash into a foreign account illegally (an example that involves Money Laundering, Deception, Fraud, and Collusion and may involve Bribery).

17.Owners and representatives of a commodity or manufactured products or traders (for example, sugar or shaving blades) conspire to keep prices high by agreeing to charge a minimum consumer price ((an example that involves Cartels, Collusion, and Abuse of Power and may involve Fraud and Deception).�

18.A jail officer providing facilities not allowed as per Jail Manual to the prisoners.

19.An electricity official showing the meter as tampered to extract money from the domestic, commercial or industrial consumers.

20.Bypassing public procurement procedures to award contract to the chosen suppliers.

21.Making payments to the Accounts Department for issuance of cheque.

22.According to a USAID publication, the examples of the police corruption are tabulated ahead: The area of police corruption is more easily understood in terms of the motives, ends and the scale of corruption. The Table below provides examples of types of corrupt behaviors (petty individual, bureaucratic, criminal, and political), each of which includes behaviors that are both operational and bureaucratic.

7

TYPES AND EXAMPLES OF CORRUPT BEHAVIORS Petty individual corruption

Minor bribes from ordinary civilians (traffic police in particular) Gifts and free services Selling information such as criminal files “Losing” court dockets, evidence. Etc. Theft while searching Keeping seized contraband Helping prisoners escape Use of police resources for personal matters (police vehicles used to run family errands; hiring out police weapons to criminal etc.)

Bureaucratic Corruption Contracting and purchasing kickbacks, sweetheart deals, etc.

Theft of assets and police resources including salaries, benefits systems, lower ranks pay, etc.

Selling information such as criminal file.

“Losing” court criminal records, evidence, etc.

Irregular and unlawful issuing of gun licenses another permits Undermining internal investigations and discipline Bribes and kickbacks required for recruitment for assignments, promotions and training

Criminal Corruption

Political Corruption

Bribes or kickbacks from known criminals Exerting regular pay-offs from criminal groups / gangs, etc.

Providing support for criminal activities with equipment, information, cover-ups, etc.

Direct participation in crime and organized crime (drug trafficking, kidnapping rings, “arrest –for-ransom”, social cleansing”) Theft of seized contraband Protection of illegal economic activities (resources)

Manipulation of criminal investigations Initiating false investigations Providing confidential information to politicians Suppressing freedom of speech and association (public demonstrations, strikes and other union activities etc.)

Carrying out or covering up political killings Suppressing political dissent / freedom of information / legitimate political party activities Leaking information to guerrillas and other illegal armed groups

Source: USAID Program Brief, Anticorruption and Police Integrity - Discussion Draft (2007)

23.Awards & Contacts Following are some of the ways that the civil works contracts are awarded to favor the chosen ones to extract commission and kickbacks, etc.

I.The bidding agency prepares the bidding documents / requirements which restrict the bidders so that the minimum No. of bidders could compete and so competition is limited to their pre-qualified only.

II.Tenders and its advertisement are restricted so that only a few readers are able to compete.

III.After bids are received, short listing is done in a way that No. of bidders are further reduced.

IV.Often negotiations are held with the lowest bidders through negotiators. The favorite bidder is awarded the contract through underhand dealing and manipulation etc.

24.Land grabbing is done by the private persons in collusion with the government officials.

25.Sale of assets or land by the Government or their corporations / public sector bodies under the control of the Government is done in a non-transparent manner.

26.Appointments in Government or Government managed public sector institutions of their favorites against merit with money.

27.Obtaining approval of house, buildings or plaza designs or in case of violation, their approval.

28.Approval of electric power generation projects in violation of prescribed rules & regulations.

29.Willful showing of Sui gas meters as defective to extract money from the consumers.

30.Approving gas connections against rules or according to rules.

31.Approving CNG stations including at banned places.

32.Obtaining electricity connections on payment of bribe.

33.Transfer of honest officers against rules to be replaced by dishonest persons.

34.Claiming TA/DA without travel / visiting the places.

8

35.Misusing official transport just as for pick and drop service of the children of the officers.

36.Getting monthly payments from subordinates or subordinate offices.

37.Transfer of petrol from the official transport to personal cars or motor cycles.

38.Granting permits for banned / restricted items through special allocations.

39.Violating the public procurement procedures in contracts.

40.Ensuring maximum use or showing maximum use of monthly car petrol or mileage for official or private purpose.

41.Fake purchase of goods or services.

42.Deducting salaries of staff for different unjust reasons by the top boss.

43.Non-payment of bonus of employees by the boss through false signatures of the employees.

44.Showing salary fund looted by the dacoits.

45.Purchase of substandard goods.

46.Theft of diesel of Government run buses or transport through collusion of conductor, driver and the manager of the company and petrol pump management.

47.Unauthorized installation and/ or use of air conditioners in the official cars.

48.Appointing the people with corrupt reputation to the top or chief executive of the company or other public sector bodies in order to get share in the contracts awarded by them.

49.Transfer people with clean reputation or doing honest investigations of corruption, a common practice, to protect scandals of corrupt.

50.An honest and upright person usually does not get lucrative and attractive posting because he is misfit in a corrupt culture and will be fired soon or transferred after his appointment, as he does not become a part of the corrupt system.

51.Reemploying employees after their retirement as a case of favoritism or nepotism for corruption.

52.Evading or payment of land tax and capital value tax or purchase of land or properties or plaza shops by declaring the wrong purchase value of the assets.

53.Tax frauds by commercial importer who files wrong goods declaration and produce fictitious invoices against import documents to obtain inputs adjustment of tax refunds from the FBR. 54.Allowing students cheat or indulge in copying in the examination hall or providing illegal facilities like leaking of the examination papers or providing examination answer sheets before due date.

55.Providing unauthorized facilities such as mobile to the persons in the Jail.

56.Use of secret funds by the different Ministries / Department / Agencies to extract unauthorized or illegal favor.

57.Failure of the watchdogs like NAB to act in case of fraud by the top dignitaries of the country by receiving bribes or giving other incentives to the investigators.

58.Official sanction of plots costing Rs. 10 -200 million to the top bureaucrats or others, serving or retired, which has no moral or fair justification.

59.An illegal corruption through induction of large cabinets at the federal and provincial levels consisting of an Army of Ministers, Ministers of State, Advisors, Special Assistants, Parliamentary Secretaries, Chairmen etc. more than the need and requirements in order to maintain their hold over the MNAs, MPAs and Senators etc.from switching over to the opposition benches and keeping them happy. Each such political appointment costs millions of rupees per month because of the huge facilities attached with such a post such as Secretary, Principal Staff Officer, security, telephone, electricity, gas, petrol, car with repairs etc.

9

60.There is some difference in kinds of corruption. There is a corruption, which exists against the rule and also one according to the rule corruption. Against the rule corruption is a bribe paid to obtain services. The bribe taker is prohibited from providing it. According to rule, corruption consists of facilitation payments where a bribe is paid for receiving preferential treatment for something that the bribe taker is required to do by law.

61.Sale of posts carrying financial nuisance value at highly expensive land in hills like Dunge Gali and Nathia Gali at throwaway prices.

62.Legalized corruption such as raising your own salary/privileges far exceeding the inflation rate in the country.

63.Receiving kickbacks or commission and depositing them in foreign countries through open international bidding contract awards.

64.All kinds of illegal or fraudulent practices or acts committed by the private persons or companies such as to attract investment at highly attractive returns or arranging job offers or visas in foreign countries.

65.Completing renovation of the homes with the electronic and other luxury products or devices.

66.Purchasing goods for onward dispatch to the homes of the corrupt.

The above list is still, however, not complete for the simple reason that the corrupt countries innovate new ways and methods. It is a continuous and endless process or in other words, any dishonest act by any private individual or company or Govt. or semi Govt. official of any grade in any form or shape whatsoever.

3.

Kinds of Corrupt People We have categorized corrupt people in three kinds:

1st Category on the top of the list are those who never let any opportunity to exploit the position to its maximum, look for the post or the position where they can earn maximum and have no love or sympathy for the country.

2nd Category is of those who are careful in making money and are moderate in their approach and have some sympathy and love for the department or the country.

3rd Category consists of a limited number who don't run after money and if opportunities for corruption are there and offer for bribe is made, they look for their own interests as well as their departmental at the same time and they are very careful probably because they are timid or afraid of God's wrath or have some high morality standard and love or all these at the same time.

The other category is of those people who are of course in a microscopic minority. For these people, even if bribe is offered to them, the opportunity to get rich is available, the need for money is being felt or greed can overcome their honesty, they refuse to be bribed. The percentage of such people, according to our survey undertaken for writing this book, is about 10%. This percentage, however, includes those who don't get the golden opportunities for illegal wealth. The honest people are honest for the simple reason of their high moral standards.

10

4.

Corruption Examples from Pakistan Only a few examples are given below:

1.Allocating land running into thousands of acres of renowned housing schemes or adjacent to them at throwaway prices to the parliamentarians or top civilians and other officials causing losses of billions of Rupees to the national exchequer. In DHA Karachi, the difference in cost is estimated to be extremely high (Daily “The News” 17-11-2012).

2.Spending of development funds of the Government through PSDP allocation by an MNA/Senator on a project such as building a bridge or road or hospital or school to enhance the values of his own land located nearby or around the location of the project or buying land in anticipation of construction of similar project is another example. A similar case happens to be in Islamabad for building a bridge (Daily “The News” 17-11-2012).

3.A national loss of $4.8 billion in 11 years had been detected through initiation of Pakistan Remittance Initiative, which dished out 6.67% of the home remittance with the State Bank approval and was shared amongst officers of the banks and the State Bank of Pakistan (Daily “The News” 11-10-2012).

4.The Federal Ministry of Information and Broadcasting had a secret fund called “Special Publicity Fund” which was used by the Government to meet the hostile propaganda etc.

5.The former Chairman of the Oil and Gas Regulatory Authority, Tauqir Sadiq, in collaboration with his other colleagues is estimated to have caused a loss of Rs. 44.57 billion to the national exchequer by changing CNG station sites, increasing oil head prices for an oil company and changed operating income to non-operating income, etc.

6.The Pakistan Railways purchased spare parts at 5 times higher price for its 69 locomotives a few years back.

7.A sum of Rs.4.45 billion had been unearthed by the Tax Directorate sometime back, which showed fake refunds were issued.

8.There are three kinds of possibilities in the corruption business: either you wish to accept corruption, join the corrupt club or if you do not wish to accept corruption, it does not matter but you should not interfere in the case and if you try to stop corruption, you may be transferred or demoted or put in some difficulties.

9.In Pakistan, the top bureaucrats were not only drawing transport allowance but they also managed to get official transport a few years back. For instance, Grade – 22 officers were allowed Rs.95, 910/- per month, BS-21 officers Rs. 77,430/- per month and BS-20 officersRs.65,960/- per month as transport allowance. But these officers were also shamelessly enjoying free rides.

10.Corruption has not only financial aspect like bribery, embezzlement, graft or extraction but also it covers cronyism (selection of friendly or relatives on key posts) on the basis of political links and connections which is equally damaging for the national economy and which ultimately lowers investment and economic growth. The corrupt are transferred to those posts where it is easy for them to get commission etc.

11.Investment in real estate at cheap price by the top political elites in association with their business partners in anticipation of the establishment of the Government funded projects in those places and then selling the land at enhanced market rates.

12.Selection and purchase of the land at the particular place where the Govt. proposes / plans to invest or set up some industrial, agriculture farm or educational projects, etc. by those who have knowledge or the authority to decide these matters and then selling them at higher prices after the projects are approved or work on them start.

13.The public or representatives or their close associates announce the establishment of some projects at some areas in order to enhance selling rate of the land in that area and before announcement, they purchase land at lower rates.

11

14.There is another way of corruption – doling out PSDP or ADP funds to Senators, MNAs & MPAs who are supposed to undertake development works in their constituencies through award of contracts with kickbacks with %age varying and follow their election pursuits through purchase of votes through rotation and other illegal means. Justice, fairness, mortality and integrity have nothing to do with this kind of political corruption in Pakistan.

15.In the ISAF Containers, the Custom Department had issued notices for recovery of Rs. 64 billion against over 32000 missing containers, which were bound for Afghanistan.

16.An idea can also be had about our tax morality standards of our elite population that there were about 300000 motor vehicles plying on our roads a few years back without payment of customs duty and many of them acquired fake registration numbers.

17.Corruption is even responsible for fires in the industrial units causing huge losses of life and property worth millions of Rupees. The inspectors are getting regular monthly payments from the owners of the factories, which ignore and violate rules and regulations but the required certificate of clearance is issued. Both the owner and the inspectors gain through the avoidance of meeting the essential lawful requirements and receipt of illegal money respectively.

18.Under invoicing of import is a norm in Pakistan with the result even the honest importers have to indulge in this practice in order to remain competitive with others and survive in the open market and the practice of bribing the customs officials which has been going on for years and which has become almost unavoidable and so almost all the imports are under invoiced of different degrees. Through the use of speed money, the under invoiced goods are released. The unfortunate fact is that if our honest importer shows the true value of the imports and he is not ready to pay money to the customs officials, he is likely to face delays in clearance of goods besides wrong valuation of his goods. So he has to pay a heavy price for his uprightness through payment of higher import duty, delay in release of his consignment, payment of extra demurrage and storage charges besides mental tension, etc. The end result is that most of the importers are all set to pay the customs when the shipment arrives. The system is so much fixed that the importers think that it is useless to show the correct value of their imports as it is not going to be acceptable to the customs officials and they have to pay bribe in any case. Although all the importers have to pay the extra money to the Govt. officials, yet they do not get any extra benefit out of under invoicing because all the others have to compete in the open market on a level playing field. The share of the officials through this practice should run into millions or billions of rupees. This system adversely affects the domestic industry, local employment and tax revenues.

19.An idea about the extent of corruption can be had from the fact that a Pakistani model was having three passports when she was arrested at an airport. How is it possible that she was issued three passports in a computerized system?

20.Without quoting names, in a true story, a lawyer of a government university (respondent) demanded money to settle the case in his favor from the student appellant, an example of corruption by a private person.

21.Eleven serving officers of the Public Works Department moved an application in May, 2012 against their (former) Housing and Works Minister, Makhdoom Faisal Saleh Hayat for forcing them to indulge in rampant corruption in public funds and spending money from his front men through verbal orders without any writing and 12% share on all allocations as bribe and/ or filled through current charge basis to junior officers to ensure his illegal demands were met.

Besides, the applicants were threatened of dismissal from service that followed the rules. (“Daily “The News” 29-05-2012). If the allegation is true, it showed the state of integrity level of our political leadership.

22.The country has seen another unique kind of corruption or political corruption during 1990 elections. A Bank allegedly distributed Rs. 60 million amongst various politicians on the direction of Election Cell of the Presidency.

12

23.The illegal money does not only gradually travel from top to bottom but also the money travels from bottom to the top officials of the Department who keep their eyes and ears closed to the wrongdoings of their staff or others in their own interests.

24.There are allegations of massive misuse of secret funds by the Federal Interior Ministry during the last PPP regime (Daily “Nai Baat” 23-11-2015).

25.A Pakistani Co is estimated to have earned over $200 million by selling false degrees to 245,000 students in Pakistan, USA and other countries by producing / printing fake certificates, letters, folders and envelopes etc. This must be one of the top innovative corrupt acts in the academic history of the world.

26.The latest Panama Leaks involving declaration of assets and concealed acts of income from the tax authorities and then indulging in money laundering to offshore financial centers and thereafter wrong declaration in their annual returns by corrupt political personalities, robber barons and immoral businessmen through shady contracts resulting in tax culture casualty in Pakistan.

27.A winner of Prize Bond sells the bond at a 10-15% higher than the Prize Bond price to a tax dodger who later shows it as a legal income.

28.Transferring Government funds from other accounts for medical care abroad for self or families.

29.A white-collar crime relates to the stock exchange and is called inside trading. Through secret information, which is otherwise not available in the market, the employee of the stock exchange sells or buys shares of the company and affects the price of the company’s shares in their favor.

30.Yet another kind of corruption or malpractices is that the contracts are awarded to the lowest bidders by an authorized committee and the contractor gives a certain percentage to all those officers/employees involved during the contract award winning stages as well as during the execution phase from his profits. In this case, the company or the government does not directly suffer any loss, although it is possible the quality of the output/product etc. may suffer though not necessarily.

31.Plying unregistered vehicles on the roads and evade tax.

32.Wherever your signature is required as a sole person or as a member of a committee or to fulfill a legal formality or in other words, you have some value or nuisance value.

Only a very few examples are given above and the complete list including those cases which have not been reported or detected should run into hundreds or may reach thousands or so.

So virtually corruption exists in the whole system – political, economic, judicial, moral, social and electoral etc.

Separate study is required to nearly fully include all kinds, forms, nature, varieties, contours and brands of corruption by corrupt political leadership and all Government funded functionaries as well as private fraudsters, cheats, dodgers, swindlers, tricksters mad importer’s operating in all the sectors of the country.

13

Chapter – III CAUSES OF CORRUPTION Most of the causes of corruption have been given below: 1.Politicians seek money to use for patronage and for election campaigns.

2.Politicians and officials who fear loss of office or after retirement seek corrupt benefits as “insurance”, especially if they can expect no pension or other sources of income.

3.Officials need extra money to maintain their standards of living if salaries have not been raised to match inflation and to meet commitments for housing, car, school fees, etc. because the Government is too poor to raise salaries sufficiently every year.

4.Employees feel resentment over bad management or pay levels they think unfair. This may make them feel justified in making false expense claims or taking bribes to meet their daily living costs.

5.Employees who refuse to participate in a corruption “racket” may be suspected or suspended and under threat from their corrupt colleagues or superiors.

6.Some seek status, not only for having more riches than their colleagues but because corrupt officials may be admired by friends and family for their skills in outwitting authority, although this is not a common reason.

7.Get rich quite mentality of the people.

8.Keep up with the Joneses i.e., to match the rich people is another factor, which compels people to go for corruption.

9.Rising income inequalities force the people to accept illegal money.

10.Lack of political wills to confront corruption encourages corruption because the politician is also engaged in corruption.

11.Change in values in our society, which does not consider corruption as an evil. The old values of morality, service and honesty are regarded as invalid or out-dated.

12.Vast size of population along with high illiteracy leads people to corruption in public life.

13.Rising inflation with low salaries of the government officials compels them to go to the corruption road.

14.There is lack of effective, efficient and independent internal accountability mechanism within the system.

15.Discretionary powers with their flagrant abuse by the public office holders encourage corruption.

16.Weakness of the watchdog agencies contributes to unchecked corruption.

17.There is an elected government's perpetual failure to develop proper ethical and business standards for the public and private sectors.

18.We have political leaders' incompetence and betrayal of public trust with penchant for self-enrichment.

19.There is lack of transparency in the government's decision-making process.

20.Lengthy and cumbersome procedures in the public sector system compel people to look for shortcuts by paying bribe.

21.Weaknesses in the judicial system exist which are exploited for financial gains.

22.Illiterate, apathetic or ignorant populace with inadequate discernment of political choices adds to corruption.

23.Power of influential people contributes to the corrupt practices.

14

24.Bribe serves as an incentive for the government servants for speedy disposal of the cases.

25.Corruption is a kind of price that equates supply and demand in every field.

26.In many cases, corruption takes place as it reduces transaction cost for the petitioners / applicants by saving their time and miscellaneous costs of frequent visits.

27.In case of getting contracts, certain concessions or exemptions and buying shares of private firms, the rate of return on every unit of bribe is phenomenal.

28.Net gains through bribing the voters score off the cost of the venture.

29.Payments for getting favorable divisions in civil suits may be only a fraction of the value of the suit. Similarly, securing one’s liberty in criminal cases involving huge sums has a lot of intrinsic value.

30.High-income inequalities lead to greater incentives for corruption. According to Dr. Kamal Hussain, the per capita income of the richest 0.1% of the country’s population is over 1300 times the per capita income of the bottom 60% population.

31.Poverty compels people to opt for corruption for survival if the opportunity is available.

32.Our mentality is to get rick quick overnight as we are a nation in hurry to become rich, whereas little legitimate resources exist to be rich quickly.

33.We like to emulate our rich class and try to match our living standards with the affluent classes of our country. As obviously the legal means are extremely limited, whenever and wherever window of corruption opens, we don’t hesitate to open it. Vast gap in income exists between lower and higher income groups, which promote them to get rich by fair of foul means. In other words, the demonstration effect is in operation, which makes people to compete for the extravagant living style of the elite class irrespective of their capacity.

34.In some cases corruption can be both need and greed based at the same time because once the needs are met, then the greed comes in for still better living standards and make people to continue with the old practice and habit.

35.Corruption is Pakistan or, in other poor countries, is both need and greed based. People resort to corruption because of need to meet the basic requirement like food, clothes, housing, education and health. With the growing family and to meet their requirements, one fails to manage as the income does not generally increase in the similar ratio resulting in widening of the gap between income and expenditure which is met, if possible, through other measures available such as corruption. So the gap to meet the minimum basic requirements of the family has to be met through fair or foul means.

36.A life of living from hand to mouth cannot make people to remain honest for long time when colleagues are seen by him making easy money. He will become a part of the system. Ultimately however, where there is such compulsion, most of the Pakistanis do resort the corruption to become richer. This is case of greed, which can be endless.

Greed based corruption is very common as the ellite political and bureaucratic class are well involved in corruption in order to become still richer. In both cases, need and greed, it shows a low morality level of the people but it has more so in case of the rich class who can make their both ends meet without any problem. There is an end to need but no end to greed.

37.Another reason of corruption is low morality standard of the people, which appears to be reaching rock bottom, despite the apparent increase in mosque-goers, people having long beards and women wearing veils. The No. of people robbing others is also increasing in the country. Drawing salary without doing or going to work, stealing gas or electricity, occupying pedestrian space for shops, violating traffic rules, throwing garbage on the road or streets, parking cars in the middle of the road etc. are some of the examples of the low mental level and moral values of the people which may also be partly due to lack of education and rule of the law with rising corruption.

15

38.Length and difficult procedures regarding corruption cases encourage corruption.

39.There is lack of strong, sincere and serious political will of the required level to tackle corruption.

40.Monopoly of the government in certain sectors of the economy promotes corruption.

41.High unemployment rate of in the country results in serious crime and governance crises, which is turn results in growth of corruption in the country. There were 5.5 million unemployed in 2011, with little change during the recent years.

42.The cost-benefit ratio of corruption is low for both bribe – taker & giver.

43.It is only way to escape and survive for the lowest section of the society who happen to be in position to get corruption.

44.The justice system in the country is too slow and not corruption clean.

45.Rules and procedures are twisted in collusion of the concerned persons and all those involved in corrupt practice.

46.Rule of law as a whole is weak in the country.

47.There is no anti-corruption agency to simply watch the existing anti-corruption establishment in the country, which sometimes appears to be necessary.

48.Conviction rate of the corrupt cases is very low in Pakistan.

49.It is a low risk & high reward practice in Pakistan.

50.The two corruption fighting institutions, police and judiciary, are amongst the top ten corrupt departments in the country despite increase in the salaries of their employees.

Their role is highly crucial in corruption eradication efforts.

51.As the political elite indulges in corruption, the lowest income groups also do not hesitate to indulge in it.

52.Adequate regular raise on salaries of the civic servants is not possible every year because the government of the Pakistan is too poor.

53.Will, determination and commitment of the political leadership are lacking in to contain corruption effectively because it is self engaged in this race.

54.Moral and ethical values of the nation as a whole have reached their lowest level.

55.Social security or unemployment allowance or financial security is not available in case of becoming unemployed.

56.Corruption happens to be secret joint venture between public servant and private individual to benefit the latter with or without following prescribed procedures, for example, through provision of substandard material, machinery, commodities and services etc.

57.A highly required degree of personal integrity at the top political and bureaucratic level is seriously missing.

58.There is emergence of political elite in Pakistan, which believes in self-interest oriented rather than nation-oriented program and politics.

59.Corruption is caused as well as increases because of the change in the value system of the society and ethnical qualities of men who administer.

60.Tolerance of people towards corruption, complete lack of intense public outcry against corruption and the absence of strong public forum to oppose corruption allow corruption to reign over people.

61.Vast size of population coupled with wide spread illiteracy and the poor economic infrastructure lead to endemic corruption in public life.

62.The basic needs of the population have high importance in daily life for survival and the morality issues are rated very low. Pakistani society is basically a survival oriented society and all other morality issues come later on.

63.Tax evasion is rising in Pakistan because of corruption and other multiple factors. 1) Weak deterrent policy. 2) Low tax moral level. 3) Low possibility of detection of tax evasion. 4) No high punishment in case of detection. 5) General perception amongst the

16

people that most people are evading tax and so he should also not pay. 6) Since everyone is cheating, so I should.

64.According to the study of the Sustainable Development Policy Institute, 58.7 million people are living below poverty line. Where he poverty number are so high, it is impossible to except people to be honest and incorruptible if the opportunity, legal or illegal, comes their way.

65.The proverb “When in Rome, Do as Romans do” is applicable in Pakistan with tax evasion and corrupt system. If all big and sundry people are engaged in corrupt practices, why should there be an exception?

66.Weak state institutions, legislature, executives, judiciary & bureaucracy contribute to corrupt practices.

67.Political interference in Govt. day-to-day decision-making results in corruption.

68.Abuse of power by political and bureaucratic elite.

69.Weak and inefficient government machinery.

70.Lack of transparency in decision-making.

71.Inefficient anti-corruption institutions.

72.Low level of governance.

73.Weak civil society.

74.Delay in court cases / judgment common.

75.Semi educated society.

76.Inefficient or inactive media role.

77.Growing disparity between rich and poor as the rich is getting richer and poor getting children.

78.Galloping inflation rate in the country.

79.Misuse of anti-corruption agencies by political government.

80.Poor investigation and lack of professional experts in the anti-corruption agencies.

81.Disregard of merit because of favoritism or nepotism.

82.Lack of access to the required information for getting the service.

83.Lower level of human capital.

84.To attain the living standards of the business and high income groups by the low and middle-income persons at the earliest.

85.To provide education children in the private schools / colleges by those who can or cannot afford.

86.If a little bit extra is available, there is nothing wrong.

87.High size of family numbers with inadequate income.

88.Way of life in Pakistan is to lie, steal, or rob or involve in corruption whatever the means, legal or illegal, to become prosperous overnight or Pakistanis appear to have been programmed to crave, yearn and accumulate more and more.

89.To pay a bribe to get things done – both legal or illegal.

90.Decline in moral standards of the people of Pakistan at all levels, in all sections and areas without any distinction with the only condition that the opportunity should exist.

91.To express gratitude for the services received.

92.Exploitation of the people due to lack of awareness of rules / procedures to get things done.

93.Disregard of the Islamic teaching on “Haram Income” (illegal income).

94.If wage of the public servants are low or below the survival levels of a family, many employees would think of closing the gap with corruption subject to the availability of such opportunity. High wages, however, do not mean the corruption temptation will completely go, because the other factor greed may make it easy way.

17

95.Misuse of agencies by the Govt. through poor investigations by the personnel of the agencies, political appointments in those agencies and appointment of their chief not on merit but on political consideration, etc.

96.The interaction of corruption in short words is: He wants – I give and I want – I get 97.According to a survey conducted by the Transparency International Pakistan in 2004, the following factors were determined to be contributing to corruption along with estimated percentage terms: “Lack of accountability – 31.68%, Low salaries – 16.54%, Monopoly of power – 16.43%, Discretion power – 12.61%, Lack of transparency – 9.97%, Power of influential people – 4.59%, Red tapes – 4.28% and Others – 3.9%.

98.Out of the top 17 corruption clean countries, none of these countries appears in the list of top 70 countries with the highest inflation rate. Pakistan is raked 9th country with the highest inflation rate. During the last PPP rule in the country, both inflation as worked out by Federal Bureau of Statistics and corruption as stated by the Transparency International remained were at their peak. However, the PP lost the elections for the two above-mentioned reasons apart from others, which shows the blessings of democracy and elections.

99.Inflation as a financial factor not only results in corruption but also as an economic problem results from corruption. Corruption is both cause and effect of inflation.

Corruption is a moral problem in economic and political life of a country. Due to its impact on social welfare and development of the country, various studies undertaken by the economists have reached the conclusion that the effect of corruption on economy is negative through decrease in investment and thus economic growth.

100. Microeconomic factors such as low wages, unemployment, poverty, major inequalities in income distribution, inflation, insufficient economic growth, are the major inputs for corruption to appear and spread.

101. According to Wikipedia “Political Corruption”, conditions favorable for corruption are: Information deficits.

Lacking freedom of information legislation. For example: The Indian Right to Information. Act 2005 is perceived to have "already engendered mass movements in the country that is bringing the lethargic, often corrupt bureaucracy to its knees and changing power equations completely."

Lack of investigative reporting in the local media.

Contempt for or negligence of exercising freedom of speech and freedom of the press.

Weak accounting practices, including lack of timely financial management.

Lack of measurement of corruption. For example, using regular surveys of households and businesses in order to quantify the degree of perception of corruption in different parts of a nation or in different government institutions may increase awareness of corruption and create pressure to combat it. This will also enable an evaluation of the officials who are fighting corruption and the methods used.

Tax havens which tax their own citizens and companies but not those from other nations and refuse to disclose information necessary for foreign taxation. This enables large scale political corruption in the foreign nations.

Lacking control of the government Lacking civic society and non-governmental organizations which monitor the government.

An individual voter may have a rational ignorance regarding politics, especially in nationwide elections, since each vote has little weight.

Weak civil service and slow pace of reform.

18

Weak rule of law.

Weak legal profession.

Weak judicial independence.

Lacking protection of whistle-blowers.

Government accountability projects.

Lack of benchmarking that is continual detailed evaluation of procedures and comparison to others who do similar things, in the same government or others, in particular comparison to those who do the best work. The Peruvian organization Ciudadanos al Dia has started to measure and compare transparency, costs, and efficiency in different government departments in Peru. It annually awards the best practices, which has received widespread media attention. This has created competition among government agencies in order to improve.

Opportunities and incentives.

Individual officials routinely handle cash, instead of handling payments on a separate cash desk – illegitimate withdrawals from supervised bank accounts are much more difficult to conceal.

Public funds are centralized rather than distributed.

Large, unsupervised public investments.

Sale of state-owned property and privatization.

Poorly-paid government officials.

Government licenses needed to conduct business, e.g., import licenses, and encourage bribing and kickbacks.

Long-time work in the same position may create relationships inside and outside the government, which encourage and help conceal corruption and favoritism. Rotating government officials to different positions and geographic areas may help prevent this; for instance, certain high rank officials in French government services (e.g. treasurer-paymasters general) must rotate every few years.

Costly political campaigns, with expenses exceeding normal sources of political funding, especially when funded with taxpayer money.

A single group or family controlling most of the key government offices. Lack of laws forbidding and limiting number of members of the same family to be in office.

Less interaction with officials reduces the opportunities for corruption. For example, using the Internet for sending in required information, like applications and tax forms, and then processing this with automated computer systems. This may also speed up the processing and reduce unintentional human errors.

A windfall from exporting abundant natural resources may encourage corruption.

War and other forms of conflict correlate with a breakdown of public security.

Social conditions.

Self-interested closed cliques and "old boy networks”.

Family, and clan-centered social structure, with a tradition of nepotism/favoritism being acceptable.

A gift economy, such as the Soviet system, emerges in a Communist centrally planned economy.

Lacking literacy and education among the population.

Frequent discrimination and bullying among the population.

Tribal solidarity, giving benefits to certain ethnic groups. It is common that the leadership of national and regional parties are passed from generation to generation.

Creating a system in which a family holds the center of power.

Lack of strong laws which forbid members of the same family to contest elections and be in office as in India where local elections are often contested between

19

members of the same powerful family by standing in opposite parties so that whoever is elected that particular family is at tremendous benefits”.

102. Conviction rate in the corruption cases is very low in Pakistan because both the police and prosecution staff are faulty, biased, non-serious and untrained in modern techniques and financial criminology and investigations and not well educated along with lack of security to the witnesses. Conviction rate in UK, Russia and USA is 74%, 99% and 80% respectively.

103. The estimated total No. of public servants which go on changing are estimated at about 2.7 million in all the federal and provincial governments with officers strength of only about 5% with 95% staff salary at nearly bare minimum and it is not easy to stop them from being corrupt, if the opportunists come their way. However, such opportunities of corruption do not exist at a number of posts.

104. The Gini-coefficient which means income inequalities has risen from 0.35 in 1998-99 to 0.40 in 2013-14, according to the UNDP report “Development Advocate Pakistan”. An Oxfam’s Report, “Multiple Inequalities and Policies to Mitigate Inequality Traps in Pakistan” says the share of the richest 20% has been more than 5 times than the share of the poorest 20% during 1990-91 to 2011-12.

105. Delay in justice is also responsible for rising corruption in the country. According to a news in the Daily “The News” (28.02.2014), the staff in the lower judiciary is hopelessly inadequate to deal and decide the rising cases in Lahore Lower Court, for instance, only 164 judges are working in Lahore, they have 2 minutes on average to deal with a case, they receive Rs.84 each for every case decided, as many as 190611 cases are pending in different courts at present, each judge gets a share of 1162 cases per month, 38 cases of petty issue come up daily and the judge has only 9 minutes for each case to decide. Adding to the miseries of the litigants, lawyers go on strike on petty issues frequently. In short, with such a dead slow judicial system, wonders in the corruption crime cleaning should not be expected.

106. One common mentioned reason for corruption is the low level of salaries for the public servants. The Government has significantly raised the salary structure of the judiciary and its related officials a few years back. Judiciary continues to be one of the top corrupt departments in the country and so most likely reason is greed replacing need-based corruption in these cases.

The above list of causes of corruption is quite comprehensive but is incomplete besides new reasons crop up from time to time. Strangely enough, there is still no department or office or cell in any Federal and Provincial Government which specifically deals with the related subjects of corruption such a character building, austerity, simple living, morality, law abiding, contentment, social evils etc.

20

CHAPTER – IV COST OF CORRUPTION This Chapter provides information, data, extents, instants, estimates, guesstimates true stories and assessments regarding the cost, scope, size and magnitude of corruption in Pakistan from different sources for different recent or past periods or years.

This book mainly relies on the Corruption Perception Index developed by the Transparency International, so some basic information about this Index is given below as provided in its website: “The CPI ranks countries/territories based on how corrupt a country’s public sector is perceived to be. It is a composite index, a combination of polls, drawing on corruption-related data from expert and business surveys carried out by a variety of independent and reputable institutions. The CPI reflects views from around the world, including those of experts living and working in the countries/territories evaluated. For a country/territory to be included in the ranking, it must be included in a minimum of three of the CPI’s data sources. Thus, inclusion in the index is not an indication of the existence of corruption but rather dependent solely on the availability of sufficient information.

Corruption is the abuse of entrusted power for private gain. This is the working definition used by Transparency International (TI), applying to both the public and private sectors. The CPI focuses on corruption in the public sector, or corruption, which involves public officials, civil servants or politicians. The data sources used to compile the index include questions relating to the abuse of public power and focus on: bribery of public officials, kickbacks in public procurement, embezzlement of public funds, and on questions that probe the strength and effectiveness of anti-corruption efforts in the public sector. As such, it covers both the administrative and political aspects of corruption. In producing the index, the scores of countries/territories for the specific corruption-related questions in the data sources are combined to calculate a single score for each country.

A country/territory’s score indicates the perceived level of public sector corruption on a scale of 0 - 10, where 0 means that a country is perceived as highly corrupt and 10 means that a country is perceived as very clean. A country’s rank indicates its position relative to the other countries/territories included in the index. It is important to keep in mind that a country’s rank can change simply because new countries enter the index or others drop out.

Transparency International – Corruption Ranking Transparency International is an NGO, which publishes an international survey on corporate and political corruption with its headquarters located in Berlin. It was founded in 1993.

Most of the data in this Chapter is based on the TIP Report 2011, whereas the reports after 2011 don’t show much difference and basic conclusions remain largely unchanged. However, the 2014 TI’s Report found Pakistan the best in 20 years of TI’s assessment with Pakistan scoring 29 out of 100 and ranked 126th out of 175 countries. In 2013, Pakistan’s rank was 127th and 138th in 2012 with score of 28 and 27 respectively. The 2015 Report of TI shows Pakistan further improvement from 50th most corrupt country in 2014 to 52nd in 2015 and so did better than the neighboring countries including, Iran, Afghanistan and Bangladesh. This score is the best ever, 30/100, since 1996. (Daily “The News” 27-01-2016).

Other relevant international reports on this subject rank Pakistan also high on the corruption table. For instance, the World Economic Forum finds, in its report “Global

21

Competitiveness Report 2014-15, corruption as the second most problematic item for the companies doing business in Pakistan. The World Bank’s “Worldwide Governance Indicators” shows poor corruption control indicator and also the Global Corruption Barometer (2013).

As per the CPI-2016 Report, almost all the top 10 least corrupt countries are the same with score: Denmark (96), New Zealand (90), Finland (89), Sweden (86), Switzerland (86), Norway (85), Singapore (84), Netherlands (83), Canada (82) and Germany (81). As far as Pakistan is concerned, it secured 116th position out of 176 countries as against 119th position in 2015.

Pakistan has seen improvement during the 3 years period 2013-2016. In the previous years, its position was 139th out of 174 in 2013, 134th out of 182 counties in 2011, 143rd out 178 countries in 2010 and 139th out of 180 in 2009.

Irrespective of the year of the survey or the agency conducting the survey or definition of corruption or the methodology employed for the survey, corruption ranking of Pakistan will hardly change which requires that our objective should be to move fast forward to ultimately make the country corruption clean to a significant extent in a matter of a few decades through variety of measures.The following Table Pakistan’s Rank in Transparency International surveys from 1995-2011 in respect of corruption perception: PAKISTAN’S RANK IN TRANSPARENCY INTERNATIONAL SURVEY1995-2011 Year 1995

Score out of 10 with 0 the worst 2.25/10

Rank 39/41

1996

1.0/10

53/54

1997

2.53/10

45/52

1998

2.70/10

71/85

1999

2.2/10

88/99

2000

NA

2001

2.6/10

79/91

2002

2.5/10

77/102

2003

2.1/10

92/133

2004

2.1/10

129/145

2005

2.1/10

144/159

2006

2.1/10

142/163

2007

2.4/10

138/179

2008

2.5/10

134/180

2009

2.9/10

139/180

2010

2.3/10

143/178

2011

1/10

134/178

Corruption Ranking Intensity 0.951 0.981 0.865 0.835 0.889

0.868 0.755 0.692 0.890 0.906 0.871 0.771 0.744 0.772 0.803 0.753

Source: Transparency International

22

The Corruption Ranking Intensity in each year has been worked out by dividing the rank out of the total no of countries surveyed.

This corruption intensity index shows the corruption level was highest in 1996 and the lowest in 2003 keeping in view the total no. of countries surveyed. Out of 183 countries for which the CPI was developed, Pakistan was ranked at 134th position and there were 39 countries that were behind Pakistan in 2011. In a way, the corruption intensity in Pakistan is not amongst the worst in the world. But the alarming fact is that it has remained almost in a similar state in its international ranking for many years. Surprisingly, Pakistan is above Russia, Libya, Venezuela, Iraq, Nigeria and Afghanistan in respect of lesser corruption level.

However, India scored better than Pakistan with position at 90th, while China and Sri Lanka are 32 No. ahead of Pakistan. The fact that Pakistan’s performance has improved recently is a matter of satisfaction to be proud of although we have yet to go a long way. There are 59 countries behind Pakistan in 2016 Index.The following Table shows the no. of countries behind and ahead of Pakistan in CPIs from 1995-2011: NO. OF COUNTRIES BEHIND & ABOVE PAKISTAN IN CORRUPTION RACE 1995-2011

No. of Countries behind Pakistan

Year

No. of Countries Ahead of Pakistan

1995

2

38

1996

1

52

1997

4

47

1998

14

70

1999

11

87

2000

NA

2001

12

78

2002

25

76

2003

41

91

2004

16

128

2005

15

143

2006

21

141

2007

41

137

2008

46

133

2009

41

138

2010

35

142

2011

39

133 Source: CPI

23

Generally speaking, the no. of countries ahead of Pakistan were around 130-140 during 2004-2011.There were 133 countries ahead of Pakistan in terms of less corruption level in 2011.There were 48 countries behind Pakistan in 2013 and 35 countries in 2012. The data suggests some improvement in our anti-corruption ranking status.

Based on the TI Pakistan data, the top corruption departments are Police, Land Administration, Taxation, Judiciary, Power, Tender & Contracting, Customs, Health, Military, Education and Bank with some variation from year to year.

COMPARATIVE DEPARTMENT – WISE RANKING Ranking 1

2011 Land Administration

2010

2009

2006

Police

Police

Police

2

Police

Power

Power

Power

3

Taxation

Land Admin

Health

Judiciary/ Courts

Education

Land Admin

Land Admin

4

Judiciary/Courts

5

Power

Local Government

Education

Taxation

6

Tender & Contracting

Judiciary

Taxation

Custom

7

Customs

Health

Judiciary/ Courts

Health

8

Health

Taxation

9

Military

Custom

10

Education

Tender & Contracting

Local Government

Education

Custom

Railway

Tender & Contracting

Bank

2002 Police Power Taxation Judiciary/ Courts Custom Health Land Admin Education Railway

Bank

Source: CPI - Pakistan

Transparency International Pakistan expected the federal government, provincial governments and all the sectors to take advantage from this survey and improve their ranking in future.

The following Table shows the % of the encountered population who says that they had to pay a bribe to the Department: % OF POPULATION WHO PAID BRIBE Department Police Electricity Supply Health Dept.

% of encountered population which says ‘I felt compelled to pay a bribe’ 54 45 15

24

9

Education Dept.

11

Military

46

Judiciary Courts Revenue /Property Registration

62 52

Taxation

26

Customs

43

Tendering & Contracting Source: CPI-2011

Magnitude of Corruption The following paragraphs provide extent or magnitude or estimate of corruption in Pakistan through different sources / estimates/instances and examples relating to different periods/years.

According the TI Pakistan, “30-40% of public money spent on procurement is embezzled whereas at least Rs. 500 billion of taxes is not being collected every year because of corruption”.

The PPP regime generally believed to be highly corrupt in Pakistan by the man-in-the street in Pakistan and media. The TI estimates the losses were Rs. 223 billion in 2010, as against Rs. 195 billion in 2009.According to a former Finance Minister of Pakistan, Shaukat Tareen, a tax leakage of Rs. 800 billion for FBR is estimated (Daily “Pakistan Today”, 23-05-2011). The latest reports show insignificant variations in extent of corruption estimates in Pakistan.

According to the Global Corruption Barometer, 2013, the land service is the most corrupt institution in Pakistan followed by police department. The study puts utility department third in the corruption index for Pakistan, the taxation fourth, and registry and permit services fifth followed by the judiciary, medical and education. (Daily “The News” 11-07-2013).

According to a study by Masood Ahmed and Haider Hussain titled, “Estimating the Black Money through a Monetary Approach: A Case Study of Pakistan”, tax evasion has been estimated at Rs. 105,340 million or 2.2% of GDP. Roughly, the estimates show the range of tax evasion between 4.0% of GDP in 1960 to 1.4% in 1976.” If we assume tax evasion at 3% of GDP in 2012-13, the amount would come to almost Rs. 700 billion with GDP of Rs. 2320 billion.

There is a general impression in Pakistan that our society is neck deep in corruption. You are a misfit if you don’t go along with the system. There is hardly any big business which can be run without graft to the officials, both high and low.

According to a joint study of SDPI and UN Office of Drugs and Crime, the illegal trade from Afghanistan through Pakistan consists of: i. Opium (Drug) estimated at value = 910 million to $ 1.2 billion ii. Human smuggling valued at = $ 107 million iii. Timber trade worth = $ 23 million iv. Kidnapping from ransom = $ 10 million v. Trade of Acetic Anhydride = millions of dollars (A product used in heroin production) All this is taking place largely in connivance of the custom, police and other security agencies officials.

25

A World Bank Report on Pakistan Infrastructural Capacity (2008) estimates that 15% of Pakistan’s development budget was lost in the procurement procedure due to corruption, which, however, does not include subsequent losses during implementation of various projects.

According to Dr. Mehbub ul Haq, a former Pakistan’s Minister for Planning & Development, estimated total tax evasion was Rs. 200 billion in 1998, about 19 years back. For the latest year, the figure should be over Rs. 2000 – 3000 billion. Revenue loss due to corruption is estimated at 7.3% of GDP in 2013.

According to the Federal Bureau of Revenue, a total of 32012 containers of the NATO destined for Afghanistan never reached the landlocked country and disappeared inside Pakistan.

The estimated losses to the economy are Rs. 64 billion from 28802 containers. (Daily “The News” – 27-1-2012.

The power sector is losing a whopping sum of Rs. 103 billion per year on account of power theft and non-recovery of bills. (Daily “The News” – 25-12-2012).

In another case, the FBR detected a loss of Rs. 1.87 billion through misapplication of SRO 775 in 7000 cases. The Government of Baluchistan issued 11 mining exploration licenses for Reko Dig exploration to mysteriously unheard and unknown newly formed companies.

According to the International Centre for Asset Recovery of the Basel Institute on Governance in Switzerland, President Zardari and late Benazir Bhutto were involved in looting $1.5 billion from the national coffers. (Daily “The News” – 10-1-2012). In sharp contrast, the Indian Prime Minister, Narendara Modi, has total assets of roughly about 0.14 million dollars according to the daily, ‘’Times of India” dated 01-02-2016. He seems to be poorer than a Grade17 Pakistan Government Officer.

It has been estimated that about Rs. 500 million FT2gas is stolen, leaked or illegally sold at an estimated cost of Rs. 80 million per day and this loss is about 13% as against 1-2 % in the OECD countries. (Daily “News” – 04-2-2012).

The Pakistan banks waived loans worth about Rs. 153.5 billion according to a report published in the Daily “Dawn” Karachi – (27-12-2009). The loan write-offs are another form of illegal corruption committed in Pakistan by the Pakistan banks to benefit the influential people of the country. Businessmen, political leaders, retired army men, and journalists are among over 3,300 people who got Rs153.5 billion loans written off from 11 financial institutions between 1999 and 2007.

According to a report in the daily ‘’Dawn’’, 630 people got loans totaling Rs60.8 billion waived off from the Bank of Punjab, 485 people/groups benefited to the tune of Rs59.55 billion from the ‘generosity’ of the Industrial Development Bank of Pakistan, the National Bank gave relief of Rs23.5 billion to 1,088 people, Zarai Taraqqiati Bank favored 556 individuals and businesses with Rs1.88 billion write-offs, First Women Bank waived loans of 139 people/groups amounting to Rs782.8 million, 204 people/groups benefited from SME Bank with Rs279.7 million, the Bank of Khyber waived Rs499.3 million of 98 individuals/groups, Pak-Libya gave relief to 48 people with Rs896.9 million, Pakistan Kuwait Investment Company to 22 individuals with Rs63.4million, Saudi Pak Industrial & Agricultural Investment Company to 31 people with Rs169.4 million and the Pak Oman Investment Company favored one with Rs1.78 million waiver.

For this Book, some officials of a few key corruption-ridden departments were contacted for their views on the extent of corruption in Pakistan. According to their firm views, only about 10% people who have got the opportunity to accept bribe do not become part of the chains of corruption in the performance of their duties. Corruption exists from a peon to the top man in the institutions and they are fully engaged in this unholy business. Everybody is sharing according to his status / importance in the award of the contract or court case or clearance of file, as the case may be, and it is almost impossible for anyone in the chain to refuse or not to be a part of the system although he could refuse to accept bribe in his individual capacity. Files start from the lowest cadre in such a manner to benefit a particular firm/person, right or wrong, despite the fact

26

the discretionary powers with the officials are limited and even transparency exists throughout the process, which cannot be challenged. In most cases, rules and procedures are followed by the concerned officials whose expertise circumvents them to suit their favored persons.

According to a former TIP Advisor, Adil Gillani, Pakistan lost a staggering amount of Rs. 8500 billion ($94 billion) in corruption, tax evasion and bad governance (Daily “The News” – 42-2012)_ during the tenure of PPP Government. He estimated that the losses due to corruption were Rs. 390 billion in 2008, Rs. 450 billion in 2009, Rs. 825 billion in 2010 and Rs. 1100 billion in 2011.

The daily, “The News” (31-03-2012) said that the Supreme Court managed to recover Rs. 8.689 billion from the Rental Power Producers on account of advance payments and interest while an amount of Rs. 445 billion was still pending as interest.

Other estimated corruption from different sources / losses at that time were: i. ii. iii. iv.

Auditor General of Pakistan (2010) Public Accounts Committee 2 ½ years till 2011 Illegal benefit to KESC since 2008 Losses of PIA, Pakistan Steel Mills, Pak Railways, PEPCO, SNGPL, SSGC on account of corruption

= Rs. 315 billion = Rs. 115 billion = Rs. 55 billion = no estimate is available but will be mind- boggling

There is another kind of corruption in Pakistan, which probably does not exist in any other country of the world – distribution of public sector development funds to the chosen MPAs, MNAs and Senators for buying their loyalty and vote, who allegedly sell their allocation on a certain %age kickback. The Transparency International Survey does not include this mechanism.

According to a report, the Sindh Government had over 40000 ghost employees who drew salaries without doing any work or reporting to the authority. It should be a major case in the corruption history of nations in the 21st century because it is not possible to keep such a large No. of employees without the connivance of the political leaderships and top bureaucracy of the province.

To remain upright and honest in the current Pakistan’s economic and social environment is extremely difficult. It is said that all only those people are honest who don’t get the corruption opportunity. However, the figure of upright people in Pakistan is apparently extremely insignificant.

It may also be mentioned that it will be wrong to state that every department, institution or office is essentially fully involved in this exercise. Certainly, there are institutions where the system is quite transparent and open in award of purchase contracts in all respects or at least in some respects. Not every deal in the Government funded department/ institution is corruption based and the proportion of shady deals may be small or insignificant in the total no. of contracts awarded in a few offices. This is the author’s assessment keeping in view his own service experience in different institution such as in the GC University, Lahore, under Dr. Khalid Aftab, former Vice Chancellor.

Nisar Ahmed Khuhro, former Speaker, Sindh Assembly says that tax avoidance and evasion have become national hobby (Daily “The News” 21-2-2012).It is also worth mentioning that all the kinds of transfer from private hands to the public servants are not at the cost of the government, for example, the police favoring a criminal in a murder, extortion, or ransom case, a judge or judgment in favor of the accused, awarding contract for car parking, giving admission to the undeserving students etc. All those cases are injustice to the people concerned without adversely affecting the financial health of the Government although they are also undesirable acts and erode public confidence in the Government.

According to a former Chairman, Federal Board of Revenue, for every Rs100 collected by FBR in taxes, it misses another Rs. 79 due to tax evasion and so the revenue loss came to about

27

Rs 1.27 trillion for the year 2010-2011 which was higher than the World Bank estimate of Rs796 billion and is equal to 8% of the GDP (Daily “The News” 24-2-2011).

According to a report of Global Financial Integrity titled, “Illicit Financial Flows from Developing Countries 2000-2009”, average outflows from Pakistan were estimated at $2532 million as against $266840 million of China, $53141 million Russia and $1378 million Mexico.

Another study by the Tax Justice Network, “The Cost of Tax Abuse”, November 2011, says that the shadow economy is 35.7%, which is one of the highest in the world with least corrupt countries ratio generally ranging between 10-20%. According to IMF, Lesotho, Algeria, Barbados, Denmark, New Zealand, Cyprus, Malta, UK, Norway and South Africa are the top 10 countries with the highest Tax-GDP ratio of 58.9%, 35.59%, 35.05%, 31.67%, 31.33%, 28.59%, 28.46%, 28.2% and 22.72% respectively.

However, it is not necessary that less tax – GDP ratio means tax evasion because rich countries don’t impose high taxes on their people such as Kuwait, Bahrain, UAE etc. as the Governments are rich due to their natural resources.

Mega corruption cases of the last PPP Government are given below: LIST OF MEGA CORRUPTION CASES

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Cases / Projects Bank of Punjab NICL Reko Dig Rental Power Projects Hajj Khurram Rasool PIA Contract NLC Scam NATO Containers Bank Loans Write Offs Sale of Two Embassy Buildings NHA Contracts Sales Tax Refunds Cocaine Drug Scandal Containers Pakistan Railways PIA Aircraft Purchase Pakistan Steel Mills

It is also worth referring to an article by the nuclear scientist Dr A.Q. Khan, in the daily “The News” of 23-04-2012, which is partly given below regarding extent of corruption by our rulers, which is self-explanatory.

“I would like to draw your attention to a book entitled Capitalism’s Achilles Heel by Raymond W Baker (www.ebooks.com/ 238482/capitalism-s-achilles-heel/baker). The book is a dossier on the corruption of Benazir Bhutto, Asif Ali Zardari and Nawaz Sharif. It states that when Benazir Bhutto became Prime Minister in late 1988 after the death of Gen Ziaul Haq, she immediately posted 26,000 hardcore PPP activists on important positions, including those in the nationalized banks. This enabled the couple to influence these banks to dole out billions of rupees of loans without guarantees. It is said that they obtained money through front men and in this way skimmed off Rs410 million, with which they bought majority shares in three sugar mills. It is also reported that Zardari managed to receive Rs.40 million through his crony, the fake doctor Usman Farooqi who was the Managing Director of Pakistan Steel Mills. This was done through procurement manipulation.

The most famous scandal is that of company of Switzerland which was given a preshipment inspection contract of items to be imported. The book discloses that the couple received $12 million in kickbacks, which was deposited in the accounts of two companies in the British

28

Virgin Islands. Then tractors worth $83 million were imported, duty-free, from Poland. This deal gave them $5.8 million in kickbacks and caused the country Rs1.7 billion’s loss in duties. Then there was the scandal of the purchase of Mirage aircraft for $4 billion, which brought a kickback of about $200 million. Let us not forget the famous ARY gold import scandal, which, according to the author, gave them a bonus of $10 million, which soon swelled to $40 million in a short span of time. According to the book, all this information was gathered by Nawaz Sharif (through Saifur Rehman, whom the Minister presented as a modern Sherlock Holmes) at a cost of $1 million. These important papers were acquired from the Geneva office of the Zardari/Benazir front man, Jens Schlegelmilch.

The book contains details of all bank accounts, properties, fake companies, etc. The author, when he heard Benazir Bhutto say those people chase them and they want to give them love and receive love in return, commented: “Save your tears. In the global collection of displaced leaders, Benazir Bhutto may be the least sympathetic character of all.” As far as the Swiss cases are concerned, both Benazir Bhutto and Zardari were indicted on October 29, 2007, by the investigating magistrate. The court of appeal rejected their case on March 19, 2008, and was due to announce punishment and send them to jail. As a gift from Gen Musharraf, the NRO was promulgated and the government hurriedly sent Attorney General Malik Qayyum to Switzerland with a letter freezing the case as the government had withdrawn all the cases against the couple.

Soon afterwards, the High Commissioner in London, Wajid Shamsul Hassan, was sent to Geneva to pick up all the incriminating evidence from the lawyer. Everything was shown on Geo TV. He was also the person who played a role in the Surrey Palace scandal, which Benazir Bhutto and Zardari continuously denied owning. However, after the property was auctioned off, Zardari claimed the four to 5 million pounds sterling left after all the liabilities had been paid. Had Qayyum not rushed off to Switzerland to deliver that letter, the two would have been convicted.’’

According to a study “Estimating a Black Economy through a Monetary Approach: A Case Study of Pakistan” by Qazi Masood and M. Haider Hussain, the extent of black money in 2003 was 20.3% of GDP and tax evasion Rs.105340 million tax and evasion as % age of GDP was 2.2%.

The extent of tax evasion in Pakistan a few years back may also be had from a news item published in the Daily “News” Lahore (15-11-2012) quoting FBR sources as reproduced below: “There are 3.1 million identified non-filers on the basis of frequent travels abroad, users of credit cards, living in posh areas, possess weapons, expensive vehicles, several bank accounts and heavy utilities consumption, of which 2.4 million do not have a national tax number (NTN) and 0.7 million having NTNs but still non-filers.’’

The FBR data had revealed that a large number of tax evaders of over 1.1 million of identified people belonged to the age group of 18 to 35 years. In the age group of 18 to 25 years, there are 242,640 evaders, 465,549 people are in the age group of 26 to 30 years and 393,850 people are in the age group of 31 to 35 years. The tax evaders in the age group of 36 to 40 years stood at 355,744, age group between 41 to 45 years stood at 285,409, in the age group between 46 to 50 years up to 256,089 people, in the age group between 51 to 55 years up to 204,498 people and in the age group between 56 to 60 years, there are 156,147 people. The majority of tax evaders, ie, 326,144 live in Karachi, 238,050 in Lahore, 117,639 in Rawalpindi, 101,422 in Faisalabad, 97,391 in Sialkot, 84,798 in Gujranwala, 73, 729 in Gujarat, 56, 613 in Multan, 55,190 in Peshawar, and 54,130 in Islamabad.

By profession, the majority of tax evaders, i.e. 62,779 are traders, 36, 270 contractors, 17,853 and importers / exporters, 13,531 own general stores, 10,728 are Jewelers, small industry 10,105, construction 9,569, medical 9,330, travel agents 5,426 and filling stations 3,766.”

The Chairman of the LESCO Board of Directors in a letter to the Secretary, Water and Power of the Federal Govt. dated July 12, 2012, revealed that “electricity consumers in Pakistan are paying almost about Rs. 100 billion a year for the power they used through excessive billing

29

techniques employed by the staff to cover the line losses and reduce arrears”. (“The News” 17-92012).

The Prime Minister Inspection Commission located in the PM Secretariat whose objective is to conduct enquires of various government ministries had remained a redundant institution during the period of the former Prime Minister, Yousaf Raza Gillani, which showed complete lack of sincerity in tackling corruption seriously in Pakistan.

A study of State Bank of Pakistan titled “The Size of the Informal Economy in Pakistan “estimates the total size of the informal or untaxed economy is around 30% of GDP or about Rs.850-900 billion and if we add ransom through kidnapping, smuggling and narcotics etc. the estimates would be $125 billion . (Daily “The News” 25-06-2017).

Khalid Ahmad, in his article titled “Pakistan-Paradise of Corruption + Tax Evasion and Money Laundering” (Sept 2010) says, “Currently, it is understood in Pakistan is a nation or a society which cannot do without a government and to run the business of a government, taxes have to be levied. Business of a government comprises of two things: i) to provide services to the people such as maintaining law and order, and accomplishing development works such as building energy projects, etc., and ii) (in case of a redistributive state) to provide welfare services such as 'food, clothing, shelter,' and education, health care, etc. For most of the people, it is quite natural a political philosophy. Obviously, the more duties and responsibilities we assign to a state, the more state machinery and bureaucracy, etc. will be required, and the more expenditures will incur. Thus, in addition to maintaining law and order, if a state is required to provide everything to its citizens, then its government won't remain limited. It will require more revenues and will resort to high taxes. Conversely, if its duties are limited to the protection of life, liberty and property of its citizens, it will have no justification to have recourse to more and more taxes.

But all the governments tend to expand and develop a big state apparatus, which with the passage of time becomes difficult for them to sustain without imposing high taxes. As a result, they are caught in a net of clear disproportion: their non-development expenditures outweigh their development expenditures; and, in some cases, their development expenditures, too, can be termed as non-development expenditures as they are spent without producing any tangible results.

Such a state because of its erratic policy of taxation turns into an unhappy burden on the shoulders of its citizens.

Pakistani state is such a high tax state. On the one hand, it is not providing the least of the essential services to its citizens that is, maintaining law and order and protecting life, liberty and property of its citizens. On the other, under the slogan of Welfarism, it is resorting to high taxes and control over the lives of the people and thus it has to sustain an ever-increasing state machinery. Moreover, it has instituted monopolies and likes to take care of their interests. And, last but not least, it has gathered around a ring of rent-seekers in the shape of politicians, privileged groups, civil bureaucrats, etc. who cause to manipulate its policy of taxation to their own benefit or to the detriment of others.”

From the point of view of the taxpayers, the mechanism of tax-collection is very difficult, complicated and cumbersome besides being time-consuming. Pakistan today has a mind-boggling taxation system which is extremely difficult and beyond comprehension of an average citizen and expert alike. The tax-assessing and tax-collecting officials enjoy unlimited discretionary powers, and by using these powers, they can harass and blackmail the taxpayers, and extort money from them. In Pakistan, it is said that even an honest taxpayer will not get clearance from FBR unless he pays bribe to the concerned authorities.

As a nation, we don’t appear to be honest. 3 Pakistanis are listed in the most wanted list of top 20 alleged tax dodgers in UK. The Pakistanis constitute a small minority of the British population but it stands high in the most wanted tax-dodging list, which is very deplorable.

Even the top anchorpersons of Pakistan TV networks are allegedly amongst the tax dodgers and when they are holding their programs, they appear to be amongst the most pious and honest persons on the earth with their annual income running into millions of rupees.

30

The proposed anti-corruption law introduced by the PPP Govt. near the end of its term provided harder punishment for the public servants as against the holders of public offices for obvious reasons. The Pakistan Institute of Legislation Development and Transparency (PILDAT) had termed the Bill as to little and too late (“The News” 14-10-2012).

A report published in the Daily “The News” on 10-1-2012, says: “According to the International Centre for Asset Recovery of the Basel Institute on Governance in Switzerland, which assists developing countries in making use of international legal assistance to recover their stolen assets, President As if Zardari and his late spouse Benazir Bhutto were allegedly involved in looting $1.5 billion from the national coffers.

This Switzerland-based institute, which claims to act as facilitator, coach and legal representative in international asset recovery cases and supports countries in implementing the provisions of Chapter V on asset recovery of the United Nations Convention against Corruption, has revealed that only $100 million of the $1.5 billion plundered by the sitting Pakistani President and his late premier wife has so far been traced.”

Anti-corruption campaigns have been launched by the past governments from time to time such as promulgation of EBDO to debar corruption-tainted politicians to take part in Elections by Ayub Khan. Yahya Khan dismissed 303 civil servants, Bhutto terminated the services of 1100 government employees and Musharraf announced the Tax Amnesty Scheme to legalize hidden assets and income by charging 10% of the undisclosed income etc. but overall things have hardly improved.

The infamous NRO had tried to benefit 7600 persons including 34 politicians and 220 government servants. This masterpiece ordinance from Gen. Musharraf must probably the only law in the world’s history, which allowed corrupt people to get away with their ill-gotten wealth through manipulation and collaboration and help of the Govt. A research is required to identify any such legislation in any of about 200 developed and non-developing countries.

It has been estimated that 500 million Ft2 of natural gas is stolen, leaked or illegally sold which is worth about Rest. 30 billion per year (“News” 4-2-2012).

According to a former NAB Chairman, Admiral (R) Fasih Bokhari, Pakistan loses up to Rs. 8 billion a day in corruption (News 1-7-2012) which far exceeds the estimates of the Transparency International Pakistan. The TIP has estimated corruption of Rs. 8500 billion in the first 4 years period of the PPP govt. or in other word, Rs. 2123.5 billion per annum which is lower than the NAB Chairman’s estimate of Rs. 2920 billion or about 1.4 times higher which shows an extremely gloomy picture of the state of affairs of the country and so corruption has reached a high level in Pakistan.

The former Chief Justice of Pakistan had taken very serious interest in cases relating to corruption resulting in either saving or returning of billions of Rupees to the national exchequer.

The list is quite long which includes NCL, Bank of Punjab, Evacuee Trust Property Board, Rental Power Projects etc.

During the first four years period of the Yousaf Raza Gillani Govt., the country was estimated to have lost more than Rs. 11000 billion or Rs. 11 trillion along with Rs. 8500 million or total of Rs. 19500 billion because of corruption, tax evasion and bad governance (News 7-022012) and with war on terror which also costs Rs. 4400 billion during these 4 years.

According to a former Federal Minister for Petroleum and Natural Resources, gas worth Rs. 7.708 billion was stolen in one year from January 2013 to December 2013.

According to the World Bank, “World Development Indicators 2004”, Pakistan had one of the world’s top electricity distribution losses of 24.58% with her top position at 14th out of 131 countries. The current position will hardly be different.

According to a study by FBR, black economy in Pakistan has grown to more than half of the economy with estimated $ 100 billion in 2008-09 and it has grown at a rate of 9% per annum from 1977 to 2000 (Daily “The News” 16-08-2012). This study quotes a report of LUMS of 2003 which shows that out of Rs. 100, the govt. share is Rs. 38 and the tax payer gets Rs. 62. Based on

31

LUMS calculation, the revenue leakage is estimated at Rs. 3.132 trillion as against the FBR collection of Rs. 1.920 trillion.

Another startling case is of misuse of authority by the National Police Foundation, a welfare organization for the police officials, which allotted land worth billions of rupees at throwaway price, that is only Rs. 100 in some cases, only to the ruling elite including generals and bureaucrats, etc. (Daily “The Express Tribune” 01-11-13).

Yet another serious corruption case of the previous PPP Government is regarding the Security Exchange Authority of Pakistan. According to the available information, around 100 bank accounts were used for fund transfer by those involved in the scam. A leading stock broker was involved in buying cheaper shares of SNGPL and SSGCL during the tenure of Tauqir Sadiq in collaboration with the Board Members of the two gas companies. The same broker artificially raised their prices and sold them to the financial institutions through collaboration with their top officials thus causing heavy losses to the national exchequer. (Daily “The News” 01-07-2013).

Yet another major scam happened in the Old Age Benefits Institution of 18 major transactions made during the PPP rule with Zafar Iqbal Gondal as the Chairman. Estimated level of corruption is about Rs. 40 billion (Daily “The News” 07-02-2013). The EOBI scandals include purchase of plots in DHA at higher value causing a loss of Rs. 15 billion, a loss of Rs. 55 core in the purchase of Crown Plaza in Islamabad, purchase of 2 Prado Cars, purchase of 2 controversial plots, development of cricket ground in Islamabad, purchase of 7 plots in CDA, purchase of land in Lahore, purchase of 4 blocks of a plaza in Lahore, construction of 7 star hotel near Lahore Airport, purchase of land near Karachi Airport, etc. (Daily “The News” 02-07-2013).

Another not much discussed field of corruption is the NOGs. According to a former Federal Minister of States and Frontier Regions, Lt. Gen. (R) Abdul Qader Baloch, “There is absolutely complete absence of transparency in the social sector. The amount of dirty money that the non-governmental organizations, both international and local and the humanitarian agencies, make it in parallel as compared to any other field. (Daily “The News” 04-07-2013).

A news item which was carried in the “Times of India” of June, 21, 2013, says that “when it came to money in Swiss Banks, Pakistan has a slight edge over India with total funds amounting to 1441 million Swiss Francs (Rs. 1.52 trillion) held there by Pakistan individuals and entities. However, this was the lowest level of such funds ever since Switzerland’s Central Bank began compiling this data in 2002 and was less than half of the record high amount of 3 billion Swiss francs (Rs. 4.18 Trillion) recorded in 2005. In their local currency, the total funds held by individuals and entities from Pakistan in Swiss banks stood at over Rs. 1.5 trillion as on Dec, 31, 2012. The Indians had 1421 million Francs, about 1.5% less than Pakistan despite India is far bigger economy than Pakistan.

Pakistan has yet another unique kind of corruption. The country is estimated to have about 8000 ghost schools, which are supposed to promote literacy in faraway areas of the country, but they actually don’t exist and the teachers are being paid salary. (Daily “The News” 30-06-2013).

The former Pakistan President, Pervez Musharraf’s net assets were worth Rs. 645 million on June 30, 2012, according to his nomination paper submitted for election contest. According to a report, Musharraf had Rs. 2.156 billion or Rs. 215.6 crore in foreign accounts on 20-11-12.

(Daily “The News” 3-04-2013). The report contains details of these foreign accounts. How huge amount was accumulated by him is a matter of serious doubt about his honesty and integrity which he often used to claim.

However, there is no 100% corruption clean county in the world, Similarly, it is highly unlikely that there will be 100% clean person who has never indulged in tax evasion and avoidance, nepotism & favoritism of any kind but the degree of such malpractices may be extremely low or insignificant or of no significance.

Another evidence of tax morality of the people of our country is that out of 16 top national cricketers, 8 are big tax defaulters or non-filers.

32

Another idea of extent of corruption or selfishness can be had from the acts of Dr.Asim Hussain, a former Minister of Petroleum and Natural Resources, if true, who is alleged to have incurred a loss of Rs. 450 billion to the national kitty by creating gas shortage and suspending gas to fertilizers industries and thus forcing the Government to import fertilizers worth millions of dollars (Daily “The News “ 29-01-2017).

According to the Daily “The News” 30-06-2017, money kept by Pakistanis only in Swizz Banks, as per then available data is Rs. 1.55 trillion or Rs.155,000 billion or 155,000,00 crore.

In Pakistan, even anti-corruption watchdog Transparency International, Pakistan, formerly headed by Adil Gillani did not appear to be a completely clean according to a report in the Daily “The News” dated (05-10-2013) titled “Who’s Watching the Watchdog?”

In Pakistan, it has been and is extremely difficult to get birth certificate, death certificate, driving license, vehicle registration, land registration, house building plan approved, and gas, and electricity, water connections without greasing the palm of the officials.

The report of Pakistanis having funds in the Swiss banks is highly shocking. If we add Dubai and similar centers where the rich often visit and stay and many of them doing business and having homes or buying plots etc., the figure should run into billions.

If it is said that every person is corrupt, more or less or may be amongst the corrupt ultimately, it will not be strictly incorrect because every man is largely selfish. Those who blame others are strictly not aware of their own corruption of past or present and which may be strictly insignificant, if given the opportunities which they have not got in the past, they will indulge in it lavishly. So many of us have plunged into this when they are or were offered the illegal wealth.

Those who refrain from this despite temptation and or need, they are real embodiment of goodness and deserve appreciation.

On the orders of the Supreme Court, a list of Journalists was released by the Pakistan Information Ministry which paid Rs. 178 million, which indicated that, the media or the Pakistan’s press is not very far behind in corruption. The top anchorpersons & journalists hold significant control over the print and TV media, which bring some kind of monopoly, and there is strong need to enhance their morality and ethical standards. Monopoly helps in corruption in any sector of the country. It is a general impression, right or wrong, that the leading newspapers do not publish news items without any links etc.

Pakistan has probably the unique distinction of having ghost employees in thousands who are being paid monthly pension or salary costing billions of rupees to the national exchequer annually, which is apparently another masterpiece in corruption techniques in the history of the world.

The Tehrek-e-Insaf President, Punjab and former Governor, Punjab, Ch. Muhammad Sarwar, terms the current rulers, (Nawaz Sharif), ‘Einstein’’ for introducing new and innovative techniques which he did not elaborate.

A Swiss Bank says that Pakistan is a poor country but Pakistanis are not because they have Rs28 trillions deposited in Swiss Banks. This means that Pakistanis have 28,000,000 Million Pak Rupees, which is very huge sum. Most of this money is certainly illegal.

About $2.5 billion has been siphoned off from Pakistan from 2003 to 2010 with breakdown $44 million in 2003, $202 million in 2005, $505 million in 2007, $728 million in 2008, $298 million in 2009 and $729 million in 2010, according to a Washington-based watch, Global Financial Integrity Report.

Corruption is so intensive and deep in Pakistan that the world’s top most terrorist Osama Bin Laden, had to pay Rs.50000 to the revenue officials for obtaining the official documents of his house, according to his diary found by the Pakistani officials although the patwari was completely ignorant that he was taking bribe from Osama (Daily “The News” 27.12.2012). Even Osama Bin Laden did not hesitate to pay him. It shows how deeply entrenched corruption system exists in Pakistan particularly in the land revenue department. It is remarkable that Pakistan’s bureaucracy did not spare even the world’s top terrorist.

33

NAB detected corruption of billions of rupees in 173 projects according to the Chairman NAB (Daily “The News” 18.11.2012). The level of corruption can be judged from the fact that the Federal and Provincial Governments undertook thousands of projects in the last 10 – 15 years.

It also shows that the entire corruption drive has to go a long way. If we conservatively estimate that there are about 20000 or more development projects, the share of corruption detected projects will be a fraction of the total which obviously shows that the NAB performance is only modest for reasons such as lack of staff or will not strong enough to net the mighty people.

According to a news item published in the daily “News” (07.12.2012), about 1000 Peoples Party Jialas went on a special train to Garhi Khuda Bakhsh without buying any ticket / fare. What does it mean? Not a single person out of 1000 persons has the moral or conscious to pay for the rent for an organization, which is totally financially bankrupt. It shows that where we as a nation are.

A former Pakistan NAB Chairman had said “the daily corruption in Pakistan is around Rs.12 billion” or in other words, estimated at about Rs.4300 billion per year.

Some of our MNAs (88), in the last Assembly do not have National Tax No. an amazing fact. Such top rich people who spent millions of rupees on their election campaigns do not have NTN. (Daily “The News” 13.12.2012).

The morality level of our parliamentarians can be gauged from the fact that from 115 out of 167 Sindh MPAs or about 69% did not pay any income tax at the time of 2008 elections. The Chief Minister of Sindh paid just Rs.225.00 (The Daily “News” 10.03.2013). 180 MNAs did not pay any income tax in 2008 who included Yousaf Raza Gillani, Asfand Yar Ali,Maulana Fazl ur Rehman, Hina Rabbani Khar, Sardar Asif Ahmed Ali (Daily “The News” 12.03.2013). Mrs. Hina Rabbani Khar has been Minister of State for Finance and Economic Affairs, whose job was to generate revenues for the country.

A former Sindh Minister for Information, Sharjeel Memon, has been charged by NAB in a 6 Billion Rupee graft case for awarding advertisements of the provincial government’s awareness campaign in the electronic media.

The country lost an estimated Rs.18 trillion according to the Transparency International Pakistan during the PPP’s 5-Year rule (Daily “The News” 15.03.2013). The TIP further says that Punjab, which has been the most corrupt province in 2008, emerged as the least corrupt during these years whereas in the Khyber Pakhtunkhwa, Baluchistan and Sindh, corruption has been rampant.

A chief executive of a Private Limited Co. confided to me that corruption or illegal practices to generate money existed in his company, but he could not do anything, as their replacements would not be better.

In the private sector, corruption does also exist if the Chief Executive or the top man of the organization is not directly involved in the purchase or similar activities. For instance, if there is a technical committee consisting of the top technocrats with his supporting staff, substantial chances exist of existence of corrupt practices in the organization.

By manipulation of sales tax, the FBR is alleged to have favored Pak Arab Fertilizers and Fatima Fertilizer thus causing a loss of millions of Rupees to the natural exchequer.

Pakistan suffered a loss of Rs.32 billion due to gas theft and inefficient system of SCGC & SNGC (Daily “The News” 209.11.2013).

The extent of corruption can also be had from a statement of a top official of an electric supply company, Sukkar Electric Power Supply Co. He says that 5,50,000 consumers are receiving electricity through illegal means of kunda (Daily “The News” 19.11.2015). This Co. is expected to purchase 4.10 billion units while it would recover 2.70 trillion units with power theft and line losses at about 1.40 billion units.

Despite the fact that the retired Supreme Court Chief Justice, Iftikhar Muhammad Chaudhry, did a tremendous job in contributing to tackling corruption menace in Pakistan, through his magic of suo moto action, Pakistan remains a top corrupt country in the world.

34

What is regrettable is that even the foreign companies start avoiding to paying their dues by following the practices of Pakistan’s private companies. For example, the Pakistan Telecommunication Authority has to recover about Rs.40 billion from different foreign mobile and telephone companies out of which one of them had already been wound up their business & not traceable in the country. (Daily “The News�28-1-2016). It is highly improbable that these companies would be tax culprits in their own countries or elsewhere.

There is no doubt that the corruption at the highest level or ministerial level appears to have substantially declined during the PML (N) Government, both at the Punjab and the Federal Governments level, as at present no major case has come up in the press, except LNG contract award so far and the Panama Leaks refer to companies set up many years back. It is a major achievement, although the corruption at other levels may exist and no evidence exists which suggests, that it is not taking place. Nearly top corruption free political management of the country at the highest level can be described as remarkable so far. However, there is a general impression, right or wrong, that the corruption techniques of the PML (N) government are highly sophisticated and secret and both the man in the street and anti-corruption magicians cannot decipher them.

35

CHAPTER –V CHALLENGE OF CORRUPTION CONTROL In this Chapter, the challenge of elimination of corruption in Pakistan or making Pakistan corruption clean will be assessed keeping in view the worldwide experience and particularly those countries where the quantum of corruption is extremely low or they are least corrupt according to international surveys for a number of years. What are the essential pre conditions and ingredients for a country to achieve breakthrough or successfully tackling this evil to a great extent? What are Pakistan’s prospects in its present state of economy? Has any country in the world with Pakistani’s political, economic and social standards managed to control corruption?

Most of those countries where corruption is amongst the highest in the world stand nowhere in the world’s economy and how can Pakistan be an exception through merely a change in Government, with old wine in a new bottle and through mere slogans and high sounding statements and promises?

This Chapter will elaborate that there are some very hard and tough preconditions to be attained on the economic and other fronts in order to win the battle of corruption reduction / elimination or simultaneously work on both the objectives of corruption and economic growth must be accelerated. So there is no lone solution to the corruption problem. Those countries, which appear to be success stories on the corruption front are also success stories in other sectors as explained ahead through different indicators, examples and instances. Many of the ranking tables relate to the year 2011 or earlier or later years or period, which show insignificant difference and, however, do not change the basic conclusions of the analysis.

GDP PPP PER CAPITA The GDP at Purchasing Power Parity (PPP) per capita is one of the most significant bases of a country’s economic success or prosperity. Using the PPP basis is generally considered to be a highly appropriate manner of comparing living standards amongst nations.

The available data shows that Pakistan stands at 136th position in 2011, according to IMF with per capita income of $ 2791. In 2016, Pakistan’s position was 136th out of 198 countries.

A study of the Table shows that out of top 50 countries in GDP per captia basis, none of these countries is included in the top 50 corrupt nations. So it means that if countries are prosperous or have high living standards, they are not part of the corrupt nations. None of the top 10 countries – Qatar, Luxembourg, Singapore, Norway, Brunei, Hong Kong, UAE, Switzerland, Netherlands and Austria – is ranked high in the corruption table.

Based on the per capita income (at PPP basis), the top 10 countries are ranked along with their CPI as given below Country New Zealand Denmark Finland Sweden Singapore Norway Netherlands Australia Switzerland Canada

Ranking in GDP / Capita Ranking in Corruption Index 32 1 19 2 21 3 13 4 3 5 4 6 9 7 9 8 8 9 14 10 Sources: CPI-2011 and Countries by GDP (PPP) Per Capita - IMF

36

Most of these countries with high per capita GDP are also amongst the least corrupt countries. As per the CPI-2016 report, almost the ton 10 least corrupt countries are the same with score Denmark (90), New Zealand (90), Finland (89), Sweden (86), Switzerland (86) , Norway (85), Singapore (84), Netherland (83), Canada (82) and Germany (81).

POPULATION GROWTH RATE Despite decline in population growth rate in Pakistan, 1.88% increase in population means a net raise of about 3.75 million population which is equal to current population of Albania, Armenia, Uruguay, Lithonia and Panama or more than Botswana, Estonia, Gabon, Gambia, Jamaica, Kuwait, Mauritius, Morocco, Qatar, Oman, Trinidad, etc. We are producing one Panama population every year.

As a result of high population growth rate, the dependency ratio is very high in Pakistan at 63% of the working age youth population, which is amongst the top countries. Most of the top least corrupt countries have low population growth rate and also are not populous countries.

PROSPERITY LEVEL According to the Legatum Prosperity Index, which ranks 110 countries in line with their overall ability to foster the prosperity, Pakistan was ranked at one of the lowest at 109thposition, a few years? When the prosperity level is so low, there is definitely very little chance that the people who get opportunity to get money by foul or fair means will not refuse to get it. Greater the prosperity in a country, the lesser is the quantum of corruption generally. The list includes Norway, Denmark, Finland, Australia and New Zealand, which are amongst the top prosperous countries with the least corruption levels.

In a country, if the poverty level is low, it is very likely that the corruption level is also low. In Pakistan, about 61% of the population live below 2$ per day which is also one of the highest in the world according to the World Bank.

Below is a table, which shows the top ranking countries in terms of prosperity along with their ranking in the Corruption Index: Country New Zealand Denmark Finland Sweden Singapore Norway Netherlands Australia Switzerland Canada

Ranking in Corruption Index 1 2 3 4 5 6 7 8 9 10 Source: 1. CPI– 2011. 2. Legatum Prosperity Index

Prosperity Ranking 5 2 3 6 17 1 9 4 8 7

In the Legatum Prosperity Index in 2016, Pakistan place is 139th out of 149 countries.

GLOBAL COMPETITIVENESS INDEX Another evidence of weak institutions, law enforcement, inefficiency and corruption is the Global Competitiveness Index which ranks countries on the basis of property and intellectual rights, protection, diversion of public funds, public trust of politicians, judicial independence, favoritism in Government department, waste in Government spending, efficiency of legal

37

frameworks, etc. Pakistan fell from 101stto 123rdplace in this case during 2007 – 08th to 2010-11 and improved to 122nd position.

Pakistan’s Rank and Score in the Global Competitiveness Index GCI Report Rank Out of Hard Score

2007 — 2008 92 131

2008 — 2009 101 134

2009 — 2010 101 133

2010 — 2011 123 139

3.77

3.65

3.58

3.50

2016---2017 122 138 –

When the country’s economy is not competitive vis-à-vis other economies of the world, it should not expect to develop fast.

AVERAGE HOUSEHOLD SIZE Average household size in Pakistan consists of 6.38 persons in 2011, according to the Pakistan Social Living Standards Measurement Survey conducted by the FBS, Government of Pakistan. About 59% of the households have more than 6 to over 10 members in a family. When the household size is so high, it is going to adversely impact the living standard of a family. A majority of the country is already living in poverty or below poverty line. This factor is bound to affect their moral standards and it is difficult to refuse any temptation for mere survival, if at any time, any such opportunity comes their way.

CAPABILITY INDEX It is a serious matter that the corruption level is so high in Pakistan despite the fact that Pakistan is ranked so high at the 13thposition out of 193 countries in the Composite Index of National Capability in 2017 which represents demographic, economic and military strength while the of other 13 top countries China, USA, India, Japan, Russia, Brazil, Germany, South Korea, UK, France, Italy and Turkey are also amongst the least or less corrupt countries. Pakistan’s overall capability has not been properly mobilized to contain or reduce corruption.

WORLD GOVERNANCE INDICATORS World Governance Indicators developed by the World Bank include Peace and Security, Rule of Law, Human Rights, Sustainable Development and Human Development. Out of 179 countries; Pakistan has been ranked extremely low at 166th position in 2011. If the governance in a country is deplorable, it is not expected from that country to get rid of a major evil, corruption.

The top 10 countries in terms of excellent governance are the developed Western countries, which also happen to be amongst those least corrupt countries as shown in the Table below:

Country

WGI Ranking

CPI Ranking

Norway

1

6

Sweden

2

4

Finland

3

3

Iceland

4

13

Denmark

5

2

New Zealand

6

1

Netherlands

7

7

38

Switzerland

8

8

Australia 9 8 Germany 10 14 Source: 1. CPI, Transparency International 2011, 2. WGI 2011, World Bank

MOTOR VEHICLES The No. of motor vehicles indicates the standard of living and state of the economy in a country. No. of motor vehicles per 1000 population in Pakistan are amongst the lowest in the world. According to the available data, there are 11 vehicles per 1000 population in Pakistan as against 863 to 558 in the top 20 countries. The low ranking of Pakistan shows that a vast majority of the country’s population does not possess motor vehicles, which force them to get this facility by hook or crook. In addition, most of the top countries in the list are also ranked amongst the least corrupt countries such as USA, New Zealand, Australia, Iceland, Canada, Finland, Norway and France.

FAILED STATES INDEX A US Think Tank has tabulated a Failed States Index which is based on 12 indicators including demographic pressures, refugees group grievance, uneven development economic decline, human rights, security apparatus, external intervention, etc. Pakistan was ranked at 12th top failed state in 2011 with Somalia, Chad, Sudan, Congo, Haiti, Zimbabwe, Afghanistan, Central African Republic, Iraq, Costa Rica and Guinea behind Pakistan. In 2010 and 2009, Pakistan’s position was 10th. The other countries following Pakistan were Yemen, Nigeria, Niger, Kenya, Burundi, Burma, Guinea-Bissau and Ethiopia. In 2012, Pakistan was ranked at 13th top failed country.

How can a failed state eliminate corruption? There is not a single nation amongst the top 15 failed states, which have managed to reduce or control corruption to a reasonable level. In order to get out the top failed states list, you will have to have a strong central government, provide adequate public services and eliminate corruption and crime in the society, etc. The lowest ranking in the Failed States Index are almost the same, which have the lowest corruption such as Ireland, Luxembourg, Austria, Canada, Australia, Netherlands, etc.

The following Table shows the top Failed States Index as well as CPI Ranking: Sr. No.

Failed States Ranking

CPI Ranking

1.

1

Somalia

182

2.

2

Chad

168

3.

3

Sudan

177

4.

4

Congo

168

5.

5

Haiti

175

6.

6

Zimbabwe

154

7.

7

Afghanistan

180

8.

8

Central African Republic

154

9.

9 10

Iraq Pakistan

175 134 Source: Failed States Index-2011

39

FRAGILE STATES INDEX A fragile State Index has been developed which include a state where the central government is so weak or ineffective it has little practical cover over much of its territory etc. Out of 178 countries, Pakistan is ranked at 17th top Fragile State in 2017.

MOST EDUCATED COUNTRIES The following table shows the list of the most educated countries and their ranking in the corruption index: Rank

Country

Percentage of population aged 25-64 that haveattained a tertiary level of education (OECDCountries)

CPI Index

44.0

10

38.4

24

37.4

14

33.4

4

33.3

2

31.9

8

31.3

6

31.0

1

30.9

1

29.5

43

Canada 1.

2.

United States Japan

3.

4.

Sweden

Finland 5.

6.

7.

Denmark

Australia

Norway 8.

New Zealand

9.

10.

Korea, South

Source: 1. OECD, 2. CPI Ranking- 2011

The above Table shows that a highly educated society is likely to be less corrupt. According to UNESCO, Pakistan Gross Enrollment Ratio of Tertiary Enrollment is only 10% in 2015.

GLOBAL PEACE INDEX The Global Peace Index has been developed by the London “Economist Intelligence Unit� which measures the relative position of nations and their peacefulness. It includes such indicators

40

as death during the war, violent conflict, criminality, political stability, crimes, violent demonstration, etc. The major finding of the Global Peace Index is that the peace is correlated with such indicators as income, education, high level of transparency, low corruption and sound and stable candidates.

The top 10 countries in the Global Peace Index are also amongst the top least corrupt countries as given in the table below: Sr. No. 1

Country New Zealand

GPI Ranking 1

CPI Ranking 1

2

Iceland

2

13

3

Japan

3

14

4

Austria

4

16

5

Norway

5

6

6

Ireland

6

19

7

Denmark

7

2

8

Luxemburg

8

11

9

Finland

9

2

10

Sweden

10

4

Sources: 1. CPI – 2011, 2. Global Peace Index 2010

Pakistan had one of the lowest positions at 145th out of 149 countries in the year 2010 as against 136th, 131st and 118th in the year 2009, 2008 and 2007 respectively which show decline in our peace ranking. In 2017, Pakistan is ranked at 152nd position out of 164 countries.

When a country is facing turmoil and terrorism and is not enjoying blessings of domestic peace, the people do not feel secure and do try to amass wealth through all possible methods.

Most peaceful countries like New Zealand, Iceland, Japan, Austria and Norway are also among the least corrupt countries.

WIDENING RICH-POOR GULF According to a report in the daily “Business Recorder” (23-04-2010):“A number of informative, though highly disturbing studies conducted by the Centre for Research on Poverty and Income Distribution (CRPID, www.crpid.org), confirm that rich-poor divide in Pakistan is increasing alarmingly. According to conservative estimates, 63% of poor in Pakistan are in the category of 'transitory poor'.

The rest of 32% and 5% of the population - subsisting below the poverty line - are 'chronic' and 'extremely poor', respectively. Chronic and extremely poor are those households that are always below the poverty line, all the time during a defined period. Similarly, on the other side, 13% and 21% of total non-poor (above the poverty line) have been classified as 'transitory vulnerable' and 'transitory non-poor', respectively. Widening rich-poor fuels corruptions in the society and criminality.

HUMAN DEVELOPMENT INDEX The UN Human Development Report 2011 ranks Pakistan at 145th position out of 187 countries. Pakistan has also been ranked amongst those countries with low human development.

This index includes life expectancy at birth, mean years of schooling, expected years of schooling and GNI per capita, etc.

The top 25 countries in the list of HDI also happen to be almost the same which are included in the least corrupt countries.

41

The following table shows the top 10 countries in HDI along with their ranks in CPI. HUMAN DEVELOPMENT INDEX AND CPI RANKING Sr. No.

Country

HDI Ranking

CPI Ranking

1

Norway

1

6

2

Australia

2

8

3

Netherlands

3

7

4

US

4

24

5

New Zealand

5

1

6

Canada

6

10

7

Ireland

7

19

8

Liechtenstein

8

-

9

Germany

9

14

10

Sweden 10 4 Source: CPI and HDI of UN Human Development Report-2011

This Table shows that if Pakistan has to tackle the menace of corruption, we have to educate our nation on a fast track basis. A country cannot eliminate any major evils, crime or corruption, without growing in other important sectors such as education and health.

POOR PEOPLE Pakistan has about 2.5% of the world’s population but its share in the world’s poor population is 3.86%. The poor population in this case is defined as those who are living below the global poverty line of $ 1 per day. Some highly populous countries are semi developed such as India, China, Nigeria, Bangladesh, Brazil, etc. These countries also rank amongst the top corrupt countries in the world. So there is strong relationship between poverty and corruption. If a country happens to be poor, corruption is very likely to be high there. Burma, Somalia, North Korea, Myanmar, Afghanistan, Uzbekistan, and Sudan are other examples.

It is most unlikely that a poor country is fortunate enough to be amongst the least corrupt countries. It is very unlikely that a person refuses to take bribe despite living below poverty line with 4-5 children with zero savings and don’t know how he will feed them in the evening. There are, however, a very few exceptions that despite the fact they are rich like Iraq but still high in corruption.

So one thing is very clear that the corruption, poverty and high population strongly coexist.

Amongst the top 50 least corrupt countries, Botswana, Bhutan, Mauritania and Rwanda are developing countries but none of these is populous or highly populous. Botswana’s per capita income is about 7 times higher than Pakistan with a population of only 2 million as against about 200 million of Pakistan.

An undeniable evidence, illiteracy and dishonesty in the country is that when hundreds of people including women and children rushed to bring or collect or fill up their motorcycles or car tanks or bottles when a petrol tanker carrying thousands of liter petrol crashed due to bursting of its tire which later on exploded into a big fire resulting in over 200 persons burnt alive.

GLOBAL INTEGRITY REPORT This Index includes Election, Public Administration, Government Oversights, Law Enforcement, Rule of Law, Anti-corruption, Business, Accountability, etc. The Index assesses the

42

existence, effectiveness and citizens’ access to key national level anti-corruption mechanism used to hold government’s accountability. It does not measure corruption but investigates the medicines being used against it in a country.

Pakistan’s ranking is 60th with weak status out of 100 countries in 2010.According to this report, anti-corruption law is very strong, yet its enforcement is very little.

HYBRID REGIME The Economist Intelligence Unit has placed Pakistan in the Hybrid Regime Category for 2016 with position at 111th out of 167 countries. The hybrid regimes are those are elections are not regularly held and those conducted are not fair and transparent. Corruption tends to be widespread and the rule of law is weak etc. and thus again confirming that when the rule of law is weak in a country, corruption will also be high.

THE DOING BUSINESS INDEX The Doing Business Index of the World Bank is based on Tax Regime along with Market Opportunity and Labor Market. Unless the tax regime is attractive and corruption free, the business cannot grow in a country and without business growth, the economic growth cannot move fast and thus corruption cannot be contained to a reasonably low level.

In this Index, Pakistan’s position is 144th out of 190 countries in 2017. Without business growth, no country can achieve speedy growth rate and in its absence, other evils like corruption and crime will exist and rise. Most of the top 25 countries in this Index are also listed in the least corrupt nations.

PUBLIC INSTITUTIONS How an economy is running is also indicated through the working conditions of its public institutions. The Public Institution Index developed by the World Economic Forum shows Pakistan public institutions at the lowest 100th position out of 102 countries. In 2005 Denmark, Iceland, Finland, New Zealand and Norway are the top 5 countries with the best institutions.

SATISFACTION OF LIFE INDEX A Satisfaction of Life Index created by the Adrian G. White of the University of Leicester is an attempt to show life satisfaction in different countries. It uses data of heath, wealth and access of education and asks people how happy they are in contrast to traditional basis of GDP etc.

According to this Index, 2006 Pakistan’s place is 166th out of 178 nations with Denmark, New Zealand, Austria, Iceland and Bahamas as the first 5 nations. The lowest countries are Congo, Zimbabwe and Burundi.

If the people are not satisfied in respect of their health, wealth and education standards, they are bound to find other means to get satisfaction and one of the major means is to commit illegal acts such as indulging in corruption.

BASIC CAPABILITIES INDEX A Basic Capabilities Index is not based on the general premise that poverty is a monetary phenomenon and we assume how many persons live with an income of less than 1$ per day but rather based on non-monetary measure of poverty and wellbeing and on the human capability that are indispensable for human survival and dignity, i.e., capability to be well nourished, educated and knowledgeable.

43

The top 5 positions are held by the prosperous nations; Japan, Norway, Netherlands, Switzerland and Iceland in this Index and these countries also happen to be amongst the least corrupt countries. Pakistan’s ranking is 68th out of 167 countries according to the Basic Capabilities Index 2011.

QUALITY OF LIFE INDEX Quality of Life Index is an attempt to measure a nation’s capability of its average citizens.

It combines eight sub-indexes, each describing the factor which influences the quality of life, health, purchase power, consumer price index, traffic time and pollution. Pakistan’s position is 48th in this index out of 56 countries. The top 10 countries in this list are also amongst the least corrupt nations, according to 2016 Index.

QUALITY AND POWER INDEX The Quality and Power Index (QPI) is the geometric mean of the QLI and National Power Index. It ranks the countries, which strike the best balance between quality of life and power.

A comparative ranking table comprising of Quality and Power Index shows the Index with the top countries are all advanced countries such as France, USA, UK, Germany Japan, Canada, Italy, Spain, Australia and Netherlands as the top 10 and Pakistan stands at 86th position out of 137 countries in 2011.

NATIONAL POWER INDEX In this index, Pakistan, however, has high position at 40thout of 137 Countries according to the National Power Index, 2011. This index measures capacity to influence events and outcomes across the globe through its economy, military, diplomacy, technology, and popularity.

COUNTRIES AT THE CROSSROADS The survey offers to indicate an independent external evaluation of the state of the rule of law, transparency, anti-corruption efforts, democratic practices and respect of fundamental civil liberties in 30 countries where democracy has been or has not been consolidated.

Pakistan along with Morocco, Uzbekistan and Zimbabwe stood out with the weakest performance according to a survey conducted by the Freedom House in 2001.

TAX BURDEN INDEX Pakistan is usually considered to be a heavily taxed country and so it is argued that the quantum of corruption is higher because the people try to avoid it. This argument does not, however; appear to be correct if we compare our tax level as compared with other countries.

According to Tax Burden by Country 2009, Pakistan’s ranking is 57th out of 65 countries.

The Misery Score is the sum of the taxes shown in the tax categories of corporate, income, personal income, wealth tax, employees’ social security, sales tax, etc.

Despite Pakistan is amongst the tax friendly countries, the ratio of corruption is quite high and the tax collection authority is also generally considered to be one of the top Government Departments with the highest corruption level.

44

INFLATION RATE High inflation rate in a country also contributes to corruption as the wages / salaries usually fail to match the rising cost of living. Average annual inflation rate in Pakistan has been ranging around 8% in the country during the past many years, whereas the wages in private sectors have not risen proportionately.

PASSPORT In the Nomad Passport Index, 2017, Pakistani passport is ranked at 196th the lowest out of total 199 countries with Afghanistan, Iraq and Eritrea behind Pakistan.

HOUSING “Roti, Kapra Aur Makaan”, i.e. Bread, Clothing and Shelter has been the official slogan of the Pakistan People’s Party which has been in power from time to time since 1972. Let us have a look at the housing conditions in Pakistan.

Pakistan tops the list of the highest No. of persons per room in the world, i.e., 3 as against 0.5 person per room in UK and 2.7 in India for the available last year data. When the housing conditions are so poor, it is bound to force people to make quick money to get out of the dismally low living level as housing is a basic human need.

JUSTICE SYSTEM According to a TIP Report of 2010, the percentage of different corruption actors were: 33.62 court employees, 23.73 public prosecutors, 14.12 witnesses, 12.43 judges, 8.19 opponent lawyer, 4.52 magistrate and 3.39 others.

Slow justice system encourages the acts of crime of corruption. If a corrupt person is caught and his case is decided in a short period of time, this will discourage corruption.

According to a news report of “Daily Times” (06-03-2011), the former Chief Justice of Supreme Court while addressing an oath-taking ceremony of Karachi Bar Association at the Sindh High Court said, "Over 2.5 million cases are in pending in the courts, out of which 10 percent cases are pending in the Supreme Court of Pakistan and high courts of four provinces while remaining 90 percent are pending in the trial courts.” The increase in pending cases is all due to inefficiency ,corruption, insignificant increase in courts, rising No. of cases and delay in country judgments etc.

WORLD’S HAPPIEST COUNTRIES A study of the World’s Happiest Countries ranking prepared by Gallup World Pool shows that the developed rich countries top the list. If the country is rich, so it is also happy. The Index is based on overall satisfaction with life and the daily experience of the individuals in relation to respect, rest, pain and intellectual engagement with evaluation score from 1 to 10.

45

The Survey surveyed thousands of respondents in 155 countries between 2005 to 2009.

Pakistan got 58th place. Denmark, Finland, Norway, Sweden, Netherlands, Costa Rica, New Zealand, Canada, Israel and Australia are amongst the top in the list. However, there are surprises in this survey. China, India, Turkey, Japan, Singapore, Hong Kong, Iran and Taiwan are behind Pakistan apparently for no reasons. Most of the top countries in this index are nearly corruption clean countries.

SLUM POPULATION Extent of poverty, which directly promotes corruption in a country, can also be judged from the data on slum population as % age of urban population. Pakistan has one of the highest slum populations in the world with 45.5% urban population living in slums. All the top corrupt nations such as Zambia and Afghanistan have also significant level of slum population or in other words, population living in extremely poor conditions. All the major corruption free economies like Denmark, Finland, France and Ireland have no slum population. So if a country has significant level of population living in slum, it is poor and if it is poor, it is also most likely to be a corrupt nation.

TAX-GDP RATIO Tax-GDP Ratio shows how citizens of a country pay tax in relation to their country’s GDP. Greater the ratio, lesser is likely to be pilferage of funds, misuse of official position and leakage through corruption and dubious means. A major share of the Government comes through taxes and if corruption is significant, it is very likely the ratio of Tax-GDP is low.

In case of Pakistan, Tax-GDP Ratio was 14.2% in 2016 as per CIA World Fact book as against 53.7 % in Finland, 52.5 % in France & 51.2 % in Denmark. Pakistan was ranked at 195th position out of total 220 countries/ territories. The CPI of the Transparency International has also identified it as a major indicator of corruption level in a country.

BRIBERY PAYER’S INDEX According to the Bribery Payer’s Index 2008, 49% of users of services in Pakistan reported that they paid a bribe to receive service from one of service providers such as education, judiciary, medical service, police, utilities, tax and customs as against 61% in Afghanistan, 2% in Australia, 9% in China, 9% in Japan, 2% in South Korea and 7 % in Taiwan.

ECONOMIC FREEDOM INDEX Economic Freedom Index is prepared by the Heritage Foundation. This Index includes Business, Trade, Fiscal, Government Spending, Monetary, Investment, Property Rights, Labor and Freedom from Corruption etc.

Pakistan and was ranked at 141st position out of 180 countries in 2017. Amongst the top countries in the Economic Freedom Index were Hong Kong, Singapore, Australia, Switzerland, New Zealand, Canada, Chile, Mauritius, Ireland, and Denmark. This index confirms that corruption and prosperity don’t go together. If a country is to be free from corruption, it has to develop first through freedom in different respects.

46

CRIME There is growing evidence that there is a strong relationship between crime and corruption.

In view of the occurrence of crime, there is tremendous dependence on police and judiciary and in both these departments, corruption level is high.

No. of reported crimes went up from 378301 in 2001 to 6300600 in 2015, an increase of about 69% in fifteen years period in Pakistan. Crime promotes corruption and vice versa. Almost all the less crime countries are also amongst the least corrupt countries. If a country is crimeridden, it is also heavily corrupt. There is no country in the world which is heavily corrupt with lower crime rate.

A GLOBAL PROJECTION OF SUBJECTIVE WELL BEING According to another index called “A Global Projection of Subjective Well Being” which includes education, health and poverty, Pakistan’s score is one of the lowest at 166th, with Zimbabwe at 110 and Denmark at the top in 2006, out of 178 countries.

MULTIDIMENSIONAL POVERTY INDEX A Multidimensional Poverty Index assesses the nature and intensity of poverty at the individual level in education, health and standard of living.

In this category, most of the people belong to the low-income group or poor class. So if the hunger exists in their homes, they are all bound to indulge in corruption whenever the opportunity is available to get money. Food is a basic daily need and no father or mother could bear his / her children to remain hungry. So corruption cannot be effectively controlled if the food is not easily available to a large majority of the country’s population who are poor or live below poverty line.

The Multidimensional Poverty Index for the year 2010 ranks Pakistan at the 69th position out of 103 countries with Slovakia, Slovenia and Czechoslovakia with the least ratio and Niger, Ethiopia and Mali with the highest multidimensional poverty ranking. Another UNDP Report of 2012-2013 estimates 52% of the country’s population is facing severe multi-dimensional poverty.

Another international report of UNDP and Oxford University 2016, reveals 4 out of 10 Pakistanis live in multidimentional poverty.

GLOBALIZATION INDEX This Index includes global connectivity, integration and interdependence in the economic, social, technological, cultural, political and ecological spheres. Pakistan’s rank is 113rd out of 207 countries in 2017. Most of the top countries in this ranking – Belgium, Austria, Netherlands, Switzerland, Ireland, Sweden, Denmark and Canada etc. are the same who are amongst the top in the least corrupt nations.

MANAGEMENT INDEX A Management Index which focuses on steering capability, consensus building, resource efficiency and international cooperation has been developed Pakistan’s position is 119th out of 129 countries in 2014 with such countries like North Korea, Somalia, Iran, Venezuela, and Sudan amongst the worst and Taiwan, Brazil and South Korea amongst the best. India’s ranking is 20th far ahead of Pakistan.

TRANSFORMATION INDEX

47

In the Status Index, which measures both political and economic transformation, Pakistan’s ranking is 103rd out of 121 countries in 2016.

POVERTY ELIMINATION CHALLENGE As per UN Human Development Report 2011, the estimated total No. of Pakistanis living in multidimensional poverty is about 90 million out of which nearly 50 million live in “severe poverty”. If any Government decides to eliminate severe poverty of 50 million during the next 5 years at an average cost of Rs. 5000/person/month, Pakistan will require a staggering additional sum of Rs. 300000 Crore per annum which is roughly about 20 times of Pakistan’s annual development budget.

INDEX OF THE BEST COUNTRY Vex Crabtree has developed score and categorized countries in three divisions –I The Best.

II The Average and III. The Challenged based on 18 indicators – 1. Human Development Index.

2. Life expectations. 3. Overall Life Satisfaction. 4. Economic Freedom. 5. Environmental Performance. 6. Global Peace Index.7. Fertility Rate. 8. Nominal Commitment to Human Rights.

9. Slavery. 10. Women Stands for Elections & Vote 11. Gender Inequality Index. 12. Population Rights & Equality. 13. Press Freedom Index. 14. Freedom on the Net. 15. Malware & E Mal Spam. 16. Internet Users 17. Religious Importance.

Pakistan position is 178th out of 190 countries in this last category of “Challenged” with Mali, Guinea Bissau, Niger, Iraq, Yemen, Somalia, Sudan and Afghanistan while the world’s best 10 countries are Iceland, Sweden, Norway, Denmark, New Zealand, Finland, Netherland, Australia, Luxembourg & Belgium. These are also amongst the top corruption clean countries.

TAX MORALITY A highly depressing state is that of tax morality which appears to be reducing over the past few years. Tax return fillers come down from 2 million in 2006-07 to 1.1 million in 2015 and in 2016.

We are a nation of tax dodgers in addition to evasion in collusion with the revenue officials. The FBR has identified about 75000 tax dodgers through data software. Tax dodging, in other words in such cases, does not involve the complicity of the tax authorities but generally reflects the taxpaying mentality of the people of the country as a whole. The problem exists at all levels of the society irrespective of the profession – politicians, civil servants, businessmen, industrialist, shopkeepers, etc. (Daily “The News” 29-01-2017).

GLOBAL HUNGER INDEX According to the Global Hunger Index 2016 of the International Food Policy Institute, Pakistan has been ranked at 107th position out of 118 developing countries with serious hunger level and 22 % of its population undernourished. The Index includes undernourishment, child stunting, child wasting and child mortality.

SOCIAL PROGRESS INDEX The Social Progress Index measures the extent to which countries provide for the social and environmental needs of its citizen and is published by a nonprofit organization- Social Progress Imperative.

48

Pakistan’s ranking is 122nd out of 134 ranked countries in 2016 with Norway, Sweden, Switzerland, Iceland and New Zealand as top five countries, which are also amongst the least corrupt countries.

HAPPY PLANET INDEX Pakistan has done well in an index called Happy Planet Index, which measures life expectancy ecological footprints etc. for its citizens. Pakistan ranks 16thout of 151 countries in 2012.

ALCOHOL PER CAPITA CONSUMPTION For a surprising and delightful change and a matter of pride, Pakistan has been ranked at the lowest in terms of alcohol consumption per capita at 191st position out of 191 countries according to a WHO Survey, 2010. Pakistan has at last at topped in an important ranking.

REPUTATION SURVEY A world-renowned body, Reputation Institute, conducted a survey of 16 attributes including safe place to visit, its beauty, friendly and welcoming residents, and progressive social and economic policies etc. Pakistan has been ranked amongst the lowest at 68th position out of 70 countries in 2016 with Sweden and Canada as the top nations again confirming the close correlation between overall development of a country and corruption.

Miracles do happen in this real world and especially in an individual’s life in both rich and poor counties and son of a PN (peon) could become PM but miracles very rarely happen in the life of nations. During the last 5 or 6 decades, we have only 4 or 5 miracles such as in Japan, China, South Korea, Hong Kong and Singapore for variety of reasons. The world’s experience cannot be set aside while assessing the prospects of breakthrough in the Pakistan’s anti-corruption crusade.

Poverty is a curse and it is said to be mother of crimes including corruption, which is also a crime. It is in fact that most of the crimes that occur are due to poverty. Corruption is a multifaceted phenomenon, which encompasses economic, political and social deprivations of the people in a country and manifests itself in a vicious circle. Low savings and ultimate low investments result in poor education, lack of health facilities, unequal distribution of wealth and poor infrastructure and thus result in lower income and poverty and finally ending in indulgence in corruption practice. Pakistan as a whole is plagued with poverty, hunger and corruption. The hunger and poverty are assuming alarming proportions in Pakistan. The situation in Pakistan is now so bleak that even some honest people who hate corruption from depth of their hearts have failed to keep their moral balance due to the pressure of poverty and have resorted to corrupt practices just to maintain their existence. In Pakistan, rich is getting richer while the poor is also getting rich but in terms of children. It is the time that the Government should not only look at the crime committed by anyone but also we should find out the cause that leads the committer to do such an act.

A map called Inglehart-Welzel Cultural Map groups Pakistan, Afghanistan, Bangladesh, Angola, Tanzania and Nigeria as survival communities. These countries also happen to be amongst the top corrupt countries. As against this, the least corrupt countries are on the other side of the coin with their values based on morality and rule of law and they the prosperous and

49

welfare states. In order to be successful in the corruption campaign, obedience to law is must which throws big challenging assignment for Pakistan Government and its people who matter.

It is easier to reduce or restrict corruption in small countries such as Singapore. Small countries can be more easily controlled from the center because they have a fewer layers of bureaucracy and the no. of people involved are less to rule and enforcing decision to fight corruption is a more manageable possibility. Secondly, physical homogeneity of a nation helps in containing corruption.

Every nation has its own set of problems and challenges. There are two or three exceptions such as Rwanda and Georgia, which have made some visible improvement in the anti-corruption struggle, but these countries are not comparable to Pakistan. It is much easier for a nation to be successful in combating corruption if it is small, contagious, educated, heterogeneous, less populous, peaceful and economically growing with small families facing tolerable financial pressures. If the country is among the top corrupt, it is most likely that it will also be amongst the top countries in respect of poverty, human development, poor governance etc. according to the available data.

In the grim scenario of Pakistan’s corruption breakthrough in the near future, there is, however, one somewhat success story of Rwanda. The country’s leadership decided not to depend upon foreign aid except for education and development of institutions. It decided its big objectives were safety, security, zero tolerance of corruption and mainly on the basis of selfreliance, about 20 years back. Today, it is the 9th fastest growing economy in terms of GDP. Its leadership has promoted education, character building, free enterprise, innovation, intolerance to corruption, quick accountability and high moral value as the cornerstones of the development strategy. A landlocked country with minimum natural resources is a new model for other developing countries and is called 2nd most improved nation globally. The lessons of Rwanda are that Pakistan needs charismatic and exemplary leadership, which stimulates the private sector, builds national moral character, develops human resources, attracts foreign and local investment and takes all possible measures to contain corruption on priority basis. The Global Corruption Barometer, 2012, also ranks Rwanda as the least corrupt country in Africa and role of the government in this battle has been of critical importance.

However, the job in Pakistan is not that simple as Pakistan’s economic challenge, which is unique unprecedented, stupendous, colossal and embroiled in serious anti-development factors and thus make the task of corruption free country extremely difficult even for a sincere and dedicated political leadership.

There are, however, much dissimilarities between Pakistan and Rwanda. Rwanda has a population of 12 million with a small area of only 12 thousand km2. There are allegations of suppression of human rights and intimidating and restrictions on freedom of speech. It is still a very poor country with GDP per capita of 1206$ at PPP or at 144th position out of 169 countries and human development index 0.45 which is 160th out of 178 countries. In corruption eradication, Rwanda’s performance is the best in Africa at 50th position out of 176 countries. There have been, however, cases of tax evasion, public funds embezzlement, fraudulent procurement practices and judicial and public servants corruption. Anyway, Rwanda has still a long way to go and nevertheless, there are some lessons for Pakistan to learn and most important is that it should be put on the path which ultimate should make the country corruption clean in a period of 20-25 years. At least, we should get admission in anti-corruption nursery class and one day, hopefully, we should be completing our graduation in two or three decades instead of about fourteen years.

A country’s land size and population level should not be ignored while discussing the corruption issue. Greater the land size of a country, the more difficult it is to manage and oversee its operation and more so in case of poor low-income countries. Pakistan has a population of nearly 200 million with land area of 770880 km2 and has the 6th highest population in the world with 34th largest area of the world.

50

Out of 125 largest area countries, only two countries, USA and Australia, are included in the top 25 least corrupt countries. In terms of population, only USA is the only country out of top 25 populous countries, which are included in the first 25 least corrupt countries in the world. Of course, there are other factors for being on the high corrupt list, yet these two factors contribute to make a country to be high in the corruption table. A look at the first 20-25 least corrupt countries reveals that most of them are not only small in area but also small in population. The more a country has population or area, the more difficult its management and control.

Amongst the least corrupt countries, Australia, Ireland, Denmark, Netherlands, Switzerland and Belgium are ranked 112th, 117th, 130th, 132th and 135th respectively in terms of land area in the world. Their total population is 8.2, 4.1, 5.4, 16.5, 7.5 and 10.4 million as against Pakistan’s total population of 200million which is about four times of these six countries’ total population The job of corruption cleaning for a country becomes easier if it is smaller in size and population just like that if one has a small family living in a small apartment, its management, both financially and physically, becomes easier especially when you are not rich. However, it does not mean the all the small nations are anti-corruption success. Only the emphasis is here on the level of the management. In 2012, CPI World showed Pakistan at the 34th most corrupt nation tied with Azerbaijan, Kenya, Nepal and Nigeria. Nigeria has a population of 130 million and area of 923768 km2 while the other countries despite being small are corrupt for various reasons.

Corruption is not confined to the public and government sectors but it exists also in the private sector, where possible. In the government, it is encompasses all kinds of ethnic, racial and regional groups. However, its scope may vary from one region to another region and from one place to another. System of governance has an effect on its scope and intensity.

Another conclusive evidence of Pakistan’ morality and ethical values of the top political elite is that out of total 1174 senators/MNA/MPAS, only 74 members submitted their assets statement or about one out of 16, which reflect their respect for the rule of law in the country.

In Pakistan, the middle class is hardly 2.4% as against 97% of poor or low income group, according to a study named, “A Global Middle Class is More a Promise Than Reality” conducted

by PEW, which means out of 10 only 1 or 2 are rich or semi-rich while all others are poor. (Daily “The News 16-07-2015). With this level of poverty, need–based corruption is inevitable and unavoidable.

A recent NAB report submitted to the Supreme Court missed the wrongs of General Pervez Musharraf ’s 9- Year rule for unknown reasons. It is impossible to accept that no wrongs or mega scandals occurred in his period although there are strong and sufficient grounds to include doling out 10,000 kanals of land for his blue eyed boys, 2005 Stock Exchange swindle, clean drinking water project and kickbacks in defense deals.

Morality degree in Pakistan can be gauged from the fake degree case of the former Pakistan Prime Minister’ son, Abdul Qadir Gillani. When son of a Prime Minister of a country possesses a fake degree, there should not be any doubt about the prospects of success in the anticorruption struggle.

The NAB list of mega corruption cases includes the names of Mian Nawaz Sharif, Mian Shahbaz Sharif, Raja Pervez Ashraf, Asif Ali Zardari, Ch. Shujaat Hussain, Ch. Pervez Elahi, Hussain Haqqani and Nawab Aslam Khan Raisani. The mere inclusion of such names in the list of the reflects the sad state of affairs of Pakistan. NAB’s performance can’t be called “dismal” but it can’t be termed as impressive. However, the NAB has been termed as No Action Bureau, which is, however, not strictly correct.

In a country where the country’s representatives fail to set examples for the citizens to meet their tax obligations, what should be expected from the rest of the population? The law-makers in the KPK who paid zero tax in the year 2014 were 31 and just 8% paid only 1000 or less tax.

(Daily “The News “ 20-07-2015).

In Karachi Municipal Corporation, Karachi, people receive the salaries of employees who never attend office and the money is divided among high-ranking officers.

51

Corruption hurts more a poor developing economy like Pakistan, because it intensifies fiscal pressure on a highly resource deficit country.

Pakistan has another unique distinction where ghost prisoners undergo terms of imprisoned in different jails in place of real prisoners by corrupting the jail staff. (Daily “The News” 26-032015).

In any developing country, development march, no single sector develops in isolation, for instance, it does not happen that the inequalities are removed or inflation reduces substantially or rule of law happens to be extraordinary high or it becomes a largely corruption clean in a matter of few years. It is generally an all-around development, which changes a country’s face and fate.

So it is not correct to expect that corruption will be almost eradicated in a short period in Pakistan without simultaneous development in other political, economic, social and legal indicators.

It is extremely difficult to get National Identity Card, Domicile Certificate, Passport, Drug License, Motor Vehicles Transfer, or Registration Certificate and electricity, water, gas connections, property sale/ purchase documents etc. without payment to the concerned officers/ staff.

The Sindh Government Information Department releases ads worth millions of Rupees to newspapers, without ascertaining their circulation on political or personal considerations.

Gunnar Myrdal, the noted Swedish Economist and the Noble Prize Winner, in his landmark book “Asian Drama – An Inquiry into the Poverty of Nations’’ written in 1968, about nearby half a century back, includes a chapter on corruption titled “Corruption- Its Causes and Effects’, which shows corruption had been a major issue in many countries including Pakistan as far back as about nearly half a century back and is still continuing to be so at present.

According to Gunnar Myrdal and the references made in the book, the reasons and challenge of corruption control remain almost the same as they are today. He says: “The significance of corruption in Asia is highlighted by the fact that whenever a political regime has crumbled in Pakistan, for instance and outside South Asia and China a major and often decisive cause has been the prevalence of official misconduct among the politicians and administrators’’.

He quoted an Indian committee report which says while “it is possible to deal quickly with some forms of corruption, it is in general a long term problem with firm resolve and persistent endeavors for many years to come.”

According to him, it took Great Britain, Holland and other countries 200 years to have limited corruption through strengthening of moral particularly together with the salary reform in the lower strata to the higher strata. These solutions appear to be impossible preposition in Pakistan’s social and economic environment at least at present.

The corruption problem existed at the time of Independence in 1947 and as Quaid-e- Azam pointed out in his speech before the Constituent Assembly, toppling of the Government in Pakistan in 1958 and thereafter the Nawaz Sharif and Benazir Government from time to time on similar charges. The last PPP government continued to face serious corruption charges during its 5 years’ rule and so nearly 70 years have gone with this menace. Although no corruption perception survey was undertaken prior to 1995, the magnitude of corruption, however, does not seem to have climbed down and more possibly increased as compared with the initial years of Pakistan’s Independence While reading the corruption chapter of this book which was written in 1968, there is no difference in the nature, quality and quantity of the problem along with its recommended solutions which shows that it is a highly complex and complicated issue and requires extraordinary commitment by at least over 1000 top political leaders who should happen to be honest by our sheer good luck to place Pakistan on the incorruptible road and reach its destination of becoming a country amongst the least corrupt countries of the world in a matter of one or two decades which appears to be a very unlikely possibility as the past experience of Pakistan and other countries is any guide.

52

The 2016-2017 estimates show that there are only 1.5 million income tax return filers, which constitute only 0.75% of the country’s population. Instead of increase in the number of tax payers, the 2016-2017 estimates that are over 21800 big tax payers and 100000 individuals have disappeared from the tax net in the year 2016 causing a decrease of about 12 million (Daily “Dawn” 02-05-2017).

When, in Pakistan, the top man of an anti graft institution, Auditor General of Pakistan, Buland Akhtar Rana, (an appointee of Asif Ali Zardari, as President of Pakistan) happens to conceal his dual nationality, manages to withdraw Rs.4.62 million from the national exchequer in excess of his salary and privileges, and possesses 4 different passports (3 Pakistani and one Canadian) besides one diplomatic passport, the war against corruption is easily of gargantuan magnitude. There are 646 illegal societies in the Punjab, according to the “ The News” dated 2-82017.

The Table below shows a list of a few developing countries which have shown remarkable performance in containing corruption which are generally those with small population, huge GDP and high human development level and don’t match Pakistani conditions: FACTORS BEHIND IMPRESSIVE /BETTER ANTI CORRUPTION PERFORMANCE (DEVELOPING COUNTRIES)

Sr. No

Country

CPI Rank

FACTORS

1

Barbados

16

High GDP/Capita, Human Development and Governance Ranking. Very small country & population of 0.284 million only

2

Bahamas

20

High per capita GDP, Governance and human development with population of 0.313 million only

3

Chile

21

High Governance, Human Development level and GDP per capita with population of 17 million only

4

Saint Lucia

25

Very small country, Medium GDP/capita and population only 0.174 million

5

Uruguay

26

High Governance, medium human development and very small population

6

Estonia

27

Very small population and high governance, human development and GDP per capita.

7

Cyprus

29

Medium governance, high human development and per capita GDP.

8

Botswana

32

Very small population 2.0million, high human development and high GDP/capita

9

Pakistan

134

High population and low human development, GDP/capita and governance and large land size for top ranking corruption performance Source: CPI and Other Sources

A private sector source related with the construction industry confined to the author that in his 15 years’ experience, he has seen only 2 or 3 senior officers who were dead honest and refused to be bribed out of about 100 people whom he came across in his business career.

According to him, generally speaking, there is hardly any exception and all are sailing in the same boat with little difference in their approach, although many of these instances or misuse of position or government resources may not always have significant financial effect. The major corruption scandals in Pakistan, however, reflect mindset of Pakistan's political and educated elite who exploit their positions to the maximum. As the morality standards of the people can’t be

53

higher in other offices or departments of the government, the total financial impact should run into billions.

The judicial system is extremely slow in Pakistan, which also contributes to corruption.

The judicial system as a whole faces serious problem, which includes inefficiency, judicial backlog, rising No. of cases, high level of corruption in lower judiciary and lack of competency in the judicial system in many parts of the country. For instance, International Crisis Group says that it can take anywhere between 10-20 years. The No. of backlog cases is rising every day as the extremely limited resources are available to the judicial sector in terms of staff and facilities.

It is extremely difficult to accurately estimate the losses to the national economy. However, on the basis of the inquiries made, it should be around at least 20% of the total national and provincial budgets, including current and development, excluding of course debt servicing.

The equation of magnitude or extent of corruption in Pakistan, which adversely affects the national exchequer, is given below: Magnitude of corruption is = Evasion of Tax or Custom or Excise Duty + gas, electricity and water theft + public procurement by civil and defense ministries + allowing smuggling of goods of banned and non-banned items + award of contracts for import of selected items + sales tax fraud + loan write off + misuse of official facilities like car + petrol + telephone + electricity + gas + commission obtained from civil or building works contracts + misappropriation of government funds + assets + allotment of plots + sale of government lands + properties + assets + allowing duty free import of goods through containers destined for Afghanistan and then remaining untraceable + Purchase of substandard equipment or goods + under invoicing of imports.

The above list is not complete and also excludes corruption obtained by the police, judiciary, land administration etc. as these are transfers from the private parties into the pockets of the public sector officials.

Enquiries revealed the following common malpractices of the public servants: 1.Only one out of 10 officials including both junior and the top level is said to be not corrupt or indulges in illegal or unauthorized practices.

2.Despite so high level of corruption in the department, there has not been a single conviction on charges of corruption during last 10-15 years.

3.Only one case was registered against an official by NAB who was also acquitted finally of the corruption charges.

4.Gross misuse of the telephone facility is common.

5.Misuse of the official cars is at its peak and cannot be more misused.

6.Fictitious and inflated TA/DA bills are very commonly submitted and in many cases without even travelling.

7.Tours / visits are frequently undertaken to meet their private commitments and attend functions and marriages at Government expenses on official transport.

8.Quiet frequently, TA/DA bills are forwarded without even visiting the places mentioned in their Bills. In one case, special transport is used to bring items from as far as 100km by the officers and mileage recorded is shown for some official tour.

9.Sometime, cars are used for official visits by calling the transport of district offices.

10.At least 4-6 cars are generally parked in the residence of the Chief Executive of the Department in addition to his officially allowed car with drivers along with petrol and repairs and maintenance for the use of the children.

11.Official transport is almost daily used for the transport of the children for their pick and drop service.

12.There is no distinction between a bearded and non-bearded person in indulging in illegal & unauthorized use of transport and receiving other illegal payments and facilities.

54

13.Regular monthly payments are received by the high officials from their respective subordinate officers working in their divisional or district or regional offices.

14.Deliberate or uncalled for transfers of officers are made in order to cancel them later on after recovery of graft.

15.Posting for lucrative assignments are sold out after receiving certain amount or commitment of a monthly amount depending upon the level and financial significance of the post.

16.Official petrol is often stolen from the official transport / car and transferred to their private cars used by the children of the officials although remaining within the total entitlement limit.

17.To remain safe and posted on the attractive assignments, the officials regularly provide a monthly to the high ups of the Department.

18.The Audit Team, which audits the accounts of the Department, is provided food and transport facilities to get clearance of their accounts during their stay.

19.All efforts are made to make money from the purchases made for the Department.

20.Car meters are tampered to show extra mileage for reimbursement of the petrol bills.

So no stone is being left unturned to enrich them at the cost of the national exchequer and make this country a bankrupt economy. Each official ensures as a matter of faith and duty to utilize his all available monthly entitlements by all possible means and nothing is left saved.

In short, no window of misuse of authority, car, petrol, purchases, tampering of meter or equipment, etc. is left closed from top to bottom by all those who get the opportunity and in Punjabi it is said, “Aawey ka Awaa hi Ulta hua hai”, or in other words, everything is rotten from top to bottom.

These startling revelations, even if half true, should leave no doubt in our mind that corruption tackling successfully is a gigantic and enormous tasks. This train of corruption is right on the track and bringing it off the track is certainly extraordinarily difficult.

In the world’s top 10 most educated countries with the highest % age of population that have attained a tertiary level of education, the level of corruption is also low. Corruption in less educated societies is relatively high.

Underdevelopment and poverty in Pakistan are conducive to promote and encourage corruption. The problem of corruption cannot be tackled by applying anti-graft structure that works in rich countries. It is an altogether different ball game in Pakistan. However, some lessons could be learnt from their experience.

Consumers undergo severe inconvenience and mental torture at the hands of the offices of the electricity distribution Cos. for receiving excess billing units for months despite repeated complaints.it was later revealed that the meter readers were in collusion with their top bosses to deliberately show excess billing to hide their high line losses and theft. It is amazing that there is no check or punishment whatsoever on the meter readers for their gross deliberate and criminal misconduct in this country.

Yet another example of the extremely tough nature of the battle against corruption is that of NAB when it starts probing high profile cases in the Punjab, NAB Chairman was warned not to cross the limits, right or wrong, but it confirms the fact that it will not be easy to net the mighty in any case. With a few exceptions, to conclude, we all are sailing in the same boat and all are naked in the corruption bathrooms.

The latest revelations through Panama Papers, however, do confirm corruption does exists at the highest level in the country.

Following the self-raise traditions set by the Pakistani parliamentarians and other top elite class of the country, management of a local body institution, Peshawar Bus Rapid Transport Project, approved hefty allowances in lakhs of rupees for themselves. (Daily “Dawn” 04-062017).

55

The current fundamentals of Pakistan’s political, economic, social, judicial and moral levels are such that they cannot help reduce corruption in the country. Reformation in these fundamentals is a basic requirement to stop growth in the corruption quantum.

The state of Pakistan’s economy is generally described by different economists as dismal and crisis ridden, which may not be strictly accurate, but certainly it is far from being buoyant or vibrant and is in difficult condition as the indicators generally suggest. So the economy’s condition is grim and no way of hope exists at present for the required major breakthrough.

Pakistan is too corrupt a country to be capable of reducing or containing corruption to a reasonable level in a matter of years. Corruption elimination challenge is equally as serious as poverty elimination and neither can be overcome in days, which requires not even years but decades. Winning the Cricket World Cup or establishing a cancer hospital is possible but the dream of a corruption-free Pakistan, which is deeply entrenched with corrupt, unjust, dishonest, fraudulent and boundlessly greedy people, requires a superhuman leadership along with substantial time period.

The state of affairs of the Pakistan’s economy is probably amongst the worst and the most reliable evidence is the Government borrowing which is rapidly growing. Huge deficit financing fuels inflation and this makes life of most of the population more miserable and contributes to the promotion of corruption and crime.

A hard core evidence exists that if a country’s corruption index improves by one standard deviation – the investment rate increases by more than four percentage points and the annual growth rate of per capita GDP increases by over a half percentage point”, according to Dr. Farrukh Saleem, (Daily “The News” Lahore 04-03-2012).

Pakistan is too corrupt a country to reasonably contain corruption in a matter of 90 days or weeks or even in 9000 days. To bring this country amongst the least corrupt countries is an extremely difficult assignment as poverty elimination is. Can any Government in Pakistan manage to eliminate poverty in Pakistan in days, which requires decades not years? Even halting further rise in poverty or corruption in Pakistan requires extraordinary competent and dedicated political leadership.

A top terrorist like Mullah Mansoor with his fake name of Muhammad Wali managed to obtain a Pakistani Computerized National Identity Card and a passport, which is either inefficiency or corruption within NADRA. It shows the scope of corruption management challenge in Pakistan.

Corruption is so deeply ingrained in our system that the word “corruption” which is an English word, is now a part of Urdu script. We are a nation of tax cheats and corrupt people. We don’t believe in paying taxes and we have firm belief to make money by all possible means.

The FIA raided a prominent university, Preston University, in Islamabad and impounded its record and initial investigation showed that the University maintained multiple accounts and concealed its real income to avoid huge taxes. (Daily “The News” 27-06-2016) So, when a higher education institute, which is supposed to build character of the students is itself engaged in so huge tax immortality, the chances of anti-corruption success should not look bright.

The stories of corruption and malpractices in the housing schemes/ cooperative societies are also highly disgusting. Not only these evils exist within their own systems but also in the Cooperative Department and the Local Bodies Department with which they have to deal with daily.

The author who had the facility of car with petrol and repairs & maintenance in his official capacity never indulged in such malpractices as drawing car petrol beyond its actual consumption or tampering the car meter or reimbursing repair and maintenance expenses above the actually incurred amount, undertaking official tour for the purpose of meeting private commitments, reimbursing fake medical bills against unlimited medical facility and getting reimbursement and submitting fictitious TA/DA Bills etc. and similarly followed the same noble objective of the system of awarding different kinds of contracts on merit in his career.

56

Everything and anything which is possible is being done by all of us with a few exceptions including highly religious persons who pray 5 times a day and make money without any fear of God and the rules and regulations are accordingly twisted or misused with the connivance and approval of the competent authority. All possible, unethical dishonest, shady and crooked practices are followed by the officials of the Government Departments / agencies as well as by the private sector persons in their areas of activities.

In short, no reason exists to expect Pakistan to become a corruption control miracle story in the near future except some exceptional favor from the Almighty!

57

Chapter –VI CORRUPTION CURES Corruption is not an ordinary crime. It should be given the status of an extraordinary and super crime. So extraordinary measures will be required accordingly for containing it within a reasonable range. The cures being recommended in this chapter will encompass almost all sectors of the country simultaneously, e.g., political, economic, social, legal and education system etc. and the problem will have to be attacked on a war-footing basis.

The country’s anti-corruption agencies have done some useful work but it is inadequate vis-à -vis the extent of corruption in Pakistan. They need to be strengthened and made more independent in performance of their responsibilities.

Nobody believes that the corruption can be completely controlled and in no society, it can be said with full certainty that the corruption has completely gone. It is like diabetes. However, it is always a noble and strategic goal to pursue for complete or drastic reduction in corruption in a country. There is no other choice but to nearly make country largely corruption clean if it has to achieve reasonably quick progress.

In those countries, where the governments have managed to reduce corruption to a significant level, there is greater inflow of foreign investment and growth in domestic investment and as a result higher per capita income, GDP growth rate and literacy rate which have reduced inflation and unemployment, etc. Hence, a drastic control over corruption and poverty should be simultaneously major policy objectives of a government if it is really serious about it. All economic and social factors are inter-dependent, inter-linked and integrated and cannot be isolated from one another. If a country is poor with high inequality rates, rising inflation and growing unemployment, it should not expect to be corruption clean not even in 9000 days, let alone 90 days, as promised by some Pakistani politicians. Tackling poverty, unemployment, inflation and inequalities, etc. are long-term issues and no developing country governments in the world, even if fortunately largely incorruptible, should expect to resolve the issue in a matter of a few years.

The following large number and variety of measures are being suggested (some of them may not be significantly different or vary from others and re-emphasized because of their critical importance.) to initiate the process of preventing the corruption level and declining corruption significantly to place Pakistan amongst the least corrupt countries in a period of about 10-20 years or so: 1. The anti-corruption campaigns should inform public that corruption is a high-risk and low reward activity and an individual is likely to be caught and punished severely sooner or later.

2. The public should be made aware of their roles and responsibilities through massive media campaigns about the evil of corruption.

3. Red-tapism is a major cause of corruption building and strengthening of governance will reduce the chance of corruption.

4. Justice delayed is justice denied and promotion of quick justice system will help in reducing corruption.

5. Accountability system within different departments / institutions which hardly exists needs to be reappraised and strengthened from within.

6. Tolerance of accepting corruption should be reduced in our social system covering almost all sectors/sections of the country through campaigns and education at all levels.

58

7. Raise the moral costs of corruption by training programs and promulgating a code of ethics only with reference to corruption.

8. Each department should clearly define its purchase and recruitment rules and regulations and make them easily available for the interested parties through their websites.

9. The Government must address the issue of corruption with full political will and firm commitment through campaigns in the media, awarding those showing exemplary level of integrity and punishing the corrupt through quick justice system.

10. Along with strong political will to attack this goal as its top priority, special training classes of bureaucracy against corruption should be conducted frequently.

11. The Government should take measures to organize a vocal civil society, which should enter in this pursuit as its major goal, which is also an essential obligation.

12. Reduce the size of Government by closing down unnecessary departments or merging them or privatizing them especially the loss making units.

13. Let all of us think of ways to make it harder for the corrupt to hide their cash. A high powered committee consisting of bankers, investigators, bureaucrats, and businessmen and of course, if possible, representatives of the convicted corrupt should be set up for their recommendations in these respects.

14. Enhance the level of transparency by making necessary changes in the rules / regulations in the contracts awarding system of the Government Departments.

15. Establish Task Forces from time to time for recommending special measures for curtailing corruption by each Department / Ministry / organization etc. separately.

16. Undertake widespread campaigns to tell people that corruption is a crime against humanity.

17. It should be mandatory that after any Minister or MP is alleged to be involved in a major corruption scandal, he must be temporarily discharged from his position.

18. An internal mechanism in each government department must exist that all cases of corruption must be seriously investigated and probed on priority basis.

19. No. of Special Anti-corruption Courts may be increased to deal with the corruption scandals for quick disposal and justice.

20. The root causes of corruption such as poverty, unemployment and low morality level should be seriously addressed although they are long-term issues.

21. In order to gather and detect information about any particular office within any department / ministry / institute, assess its vulnerability to corruption and identify particular areas of concern.

22. Look for evidence of corruption of the employees through their living standards vis-Ă -vis their salary / income and seek their explanation frequently and seriously.

23. Every department, institution and corporation, etc. should increase access to information for the media, clients, etc.

24. Strengthen internal information agents like auditors with cash rewards and incentives for auditors.

25. Allow special allowance to the employees working in vulnerable departments / places / posts.

26. Hire contract employees for corruption sensitive posts, if necessary, on trial basis to see the results.

27. Increase the penalties for corrupt behavior through changes in laws, quick enquires and justice system.

28. The low salary of the Government and semi Government servants is a major factor for mere existence and rise in corruption in Pakistan. The raise in salaries has failed to keep with the inflation besides other factors such as keeping up with the joneses. So the government will have to raise salary in accordance with the inflation rate with extra special alloowance called “Not To Be Corrupt� in order to avoid further growth in corruption.

29. Every person wishes to have better living standards, food and education for his children. So he employs corrupt practices to achieve the goal of better and still better living. There is no

59

other alternate way but to enhance living standards of the people through high economic growth rate.

30. A country is poor because it is poor and so a country is corrupt because it is corrupt. There is a vicious cycle of corruption, which is poverty – corruption – poverty. As a country is poor, the poverty breeds corruption and as a result of rampant corruption, it further breeds poverty.

If this vicious cycle is broken somehow, corruption accordingly could go on declining. If a country is corrupt, it becomes more difficult to eliminate poverty because the other systems such as governance, rule of law, anti-corruption rules and regulations, etc. are also manipulated to benefit the corrupt. For elimination of corruption, it is important that a country must first break the vicious cycle of poverty. Corruption breeds poverty and vice versa and so corruption in fact breeds corruption and so it further spreads. Poverty reduction is, therefore, a major pre-requisite to win the war on corruption.

31. We should introduce Code of Ethics for managers of private sector companies, increase transparency of political party financing, ensure declaration and monitoring of assets of private sector managers, raise public accountability for private sector managers, enhance protection of shareholders’ interests, increase control of monopolies and quasi-monopolies and improve monitoring of financial services, banking, and insurance.

32. We should review the role of the anti-corruption agencies reappraise institutions assigned to combat corruption and strengthen anti-corruption legislation and institutions by inviting suggestions from the public, media and NGOs, etc.

33. We have coined a new motto for the specific purpose of elimination of corruption, which may be called 3 Ts. Follow 3 Ts in all transactions, deals, and procurements, i.e., Transparent Tendering Techniques. The slogan may be propagated through media like TV channels, newspapers and big banners in major offices and places. A brief special brochure may be published by NAB on the subject of three Ts. 34. There is need to set up an independent police complaints board with its own investigators who hear complaints, introduce an independent group within the police force to investigate corruption within the police, examine assets of police officers, and implement and monitor Code of Ethics for police etc.

35. Apart from regular laws against crime and fraud enshrined in the Criminal Procedure Code (CrPC), anti-corruption laws in Pakistan date back to the country’s inception. Five pieces of anti-corruption legislation have been enacted to date. Much of the legislation, as seen from the titles of laws, has concentrated on elected representatives and politicians although the 1947 Act and NAB law both have big business in their ambit also. The Anti-Corruption laws will have to be amended to meet the current requirements from time to time.

36. There are a number of specialist agencies and bureaus that are dedicated specifically to investigate white-collar crime. The list below is in addition to routine investigation carried out by the police and other civil and military intelligence agencies. Presently, there are three specialized anti-corruption agencies as under: Anti-corruption Agencies in Pakistan at the Federal and Provincial Level

Name

Year established

Jurisdiction

Anti-Corruption Bureaus

1970

Provincial

Federal Investigation Agency (FIA)

1975

Federal

National Accountability Bureau (NAB)

2000

Federal

Functions Check on corruption in provincial government Immigration, financial & cybercrime anti-terrorism.

Public and private sector; white-collar crime

60

In total, there are at least 15 major accountability institutions, directly or indirectly, involved in this exercise. Others are Auditor General of Pakistan, Public Accounts Committees of the Provincial and National Assembly etc.

All these agencies need to be strengthened and made totally independent of the political control or interference, which is not an ordinary requirement to be met.

37. Honest leadership is a necessary precondition to substantially eliminate corruption as corruption cannot be totally eliminated, as it has not happened anywhere in the world.

Corruption still exists in many developed countries although they are categorized as the least corrupt countries.

38. If the honest leadership has to achieve the goal of becoming one of the least corrupt countries, it has to achieve high economic growth rate of 7-8% per annum by taking all possible appropriate measures for at least 10-20 years which look apparently impossible at present as far as Pakistan is concerned.

39. Screen the dishonest through past records, reputation, tests, etc. on a continuous basis.

40. Set awards and penalties for the honest and corrupt staff in all the government departments respectively.

41. Increase the internal authority of the top management to punish the corrupt staff quickly and without delay.

42. There is a hard evidence of non-seriousness of the previous Government to tackle the issue as one of the major anti-corruption institutions in the country, Prime Minister’s Inspection Commission, was made redundant. No enquiries were conducted by this body for a long period in the alleged cases of corruption, mismanagement and violation of rules for unknown reasons. So the Prime Minister’s Inspection Commission will have to be re-activated as a part of an anti-corruption drive.

43. There has been a steady decline in the country’s moral standards. Even if there is no significant truth in the Asghar Khan Case, the case definitely showed that the moral standards of the country’s elite were very low – as low as that of a policeman or of a tax or customs inspector. Only the amount involved is different. Our moral standards have declined to depressingly low levels. So the important part of the corruption elimination or reduction challenge is to teach people, whether they are children, school masters, bureaucrats, businessmen, or public servants etc. to act virtuously as far as possible as a major policy objective of the government. Corruption problem cannot be tackled in isolation and at individual level.

44. The menace of corruption cannot be comprehensively dealt as a separate problem from the rest of socio-economic and political issues facing the country. For example, the issue of unemployment cannot be appropriately resolved unless there is growing domestic and foreign investments resulting in high GDP growth rate for a number of years. So it is extremely important to make the economy grow fast.

45. Boards should be installed at all prominent places of all the major public places like police stations, hospitals, land transfers (patwaris), tax, customs and excise duty offices, court rooms, etc. with the following words: "Rizqe Halal Ain Ibadat Hai" (Honest Income is equal to Prayer).

46. A concise document on the evils of corruption may be printed and made a part of syllabus for all the training centers of officials in the country and a question on this subject may be made compulsory in their final examination particularly at the Civil Services Academy.

47. Most of the illegal or corrupt money or undocumented money is being invested in purchase of urban land or property. Some ways will have to be innovated to bring all those involved in such cases in the tax net and all such buyers & sellers will have to be made tax filers.

48. All the public representatives must be provided a specially prepared brochure on corruption at the time of their oath taking ceremony.

61

49. The religious leadership may be properly guided to tell the people in their daily address not to cheat, not to rob, not to get illegal money, not to make wealth at the cost of the nation or government or people and be honest in their conduct of official duties. Our religious leadership should realize the great significance of these virtues for building a corruption free society and they reorder their sermon priorities. They have to awaken the conscious of the nation, which is almost unconscious at present. Both the democracy and dictatorship have failed to eradicate this evil of the society.

50. Corruption is a secret joint venture of public and private sector personnel. It benefits both the corrupt and private person. It is a private deal and highly confidential between two parties and so it becomes too difficult to get wind of it. There are no simple solutions and if difficult measures are planned, they are extremely difficult to be implemented with a fair degree of success. However, corruption must be tackled on both supply and demand side through reforms, codes of conduct, better-revised transparent procurement and contract awarding procedures and by making changes in banking secrecy laws etc.

51. Start teaching morality at homes and schools through a chapter in the syllabus regarding concepts of right and wrong.

52. As corruption in Pakistan is both need and greed-based, the economic policies will have to ensure availability of basic needs, “Roti, Kapra Aur Makan”, along with the three latest additions of electricity, gas and water to the people to deal with the corruption problem.

Nevertheless, greediness of the high income groups belonging to the political and bureaucratic elite who are engaged in the race for rapid accumulation of wealth will have to be contained through Islamic teachings and moral awakening at all forums and levels which is a tall order in any case.

53. Salaries of the public servants cannot be raised to match with the amount of commission and inflation rate. So sufficient annual salary raise should be considered on priority basis although the Government’s financial condition hardly allows it.

54. A study of top 30 least corrupt countries indicates that except a few countries like Chile, St Lucia, and Bahamas which are small countries, all other countries are prosperous nations with high per capita income, governance standards, human development and peace level, which confirm that the corruption elimination pursuit will require that Pakistan must achieve high income growth rate which depends upon peace, quality of governance, investment, etc. The goal of corruption reduction in the country should be targeted while simultaneously pursuing the goal of sustained GDP growth rate for at least next 1-2 decades.

55. It should be made obligatory for the new public servants, as well as the Senators, MNAs, MPAs and ministers in government and heads of public sector corporations etc. to swear on the Holy Book, as Zulfiqar Mirza used to do, at the time of joining that they will not take any bribe in cash or kind through manipulation of rules or regulations or give unlawful special favor and if they do, let the Almighty wrath fall on them.

56. We should construct opposite the National Assembly Building a big structure to be called “Incorruptibility “with a big hall where the seminars should be held and regularly attended by the corruption partners, political, bureaucrats and business elite.

57. There has to be strong passion in the political leadership for the anti-corruption mission to succeed as otherwise most effective anti-corruption strategy will not succeed against corruption effectively. Inducting a strong passion in the political leaders requires training and education through media campaigns.

58. Because of its secret nature, corruption is one of the most difficult crimes to unearth and investigate and to carry out its investigations, the investigation officers must be provided strong internal support without fear and favor.

59. No political or any other influence should be allowed in the conduct of the duties of the investigation officials.

62

60. There has to be zero tolerance to treat corruption by all concerned. No double standards should be allowed if we have to make Pakistan a genuinely corruption clean country.

61. There is no single solution to this problem. You need a comprehensive approach based not only on the successful Hong Kong’s Independent Commission against Corruption model with regard to enforcement, prevention and education but also on the socio-economic and moral fronts. However, the Hong Kong model cannot be easily and exactly applied in a country like Pakistan with huge population, large area, poverty, inequalities, low moral values, weak political will etc.

62. In order to combat corruption, strong cooperation of all the partners including the judiciary, parliament, private sector, professional bodies, civil organizations, international agencies, media, foreign and local investors etc. is a must. This cooperation first has to be organized and requires total commitment and support from the government.

63. Fighting corruption is a very difficult assignment as you are confronting people who are intelligent, powerful, resourceful and knowledgeable and so the professional staff engaged in the corruption fighting bodies must be equally highly skilled, professional and fairly rich and men of tested integrity. They must possess a passion and do their job with a missionary zeal.

Such a spirit will have to be installed through special training and incentives as their match is with unscrupulous mental giants.

64. There is a need for a strong check and balance system within the anti-corruption organizations to ensure the investigations are carried out without fear or favor and political or any other interference.

65. Campaigns against regarding corruption through dramas, news, interviews and talk shows may be widely undertaken, encouraged and rewarded.

66. Encourage public to disclose corruption cases or inventions made by providing cash or nonmonetary awards.

67. The NAB/FIA may be secretly authorized to check accounts and intercept telephone communications in case of serious suspect mega corruption cases.

68. The government should form a Special Committee of the public and private sectors and formulate a fresh strategy to control corruption.

69. Pakistan should develop its own National Integrity Index and monitor its own integrity progress through an independent research body.

70. Publication and declaration of assets of all the parliamentarians, bureaucrats and judges etc. should be made compulsory on their respective websites along with a declaration on the Holy Book that no other asset has been kept as benami or hidden in any other name in Pakistan or anywhere in the world.

71. The target of making Pakistan a corruption clean significantly depends upon the moral standards of the people with, of course, the problem of need and greed. Both need and greed causes can be countered if the moral standards of the people could be uplifted. In a country with a massive poor population, 50% of the rural population landless and only a microscopic minority paying income tax, the task of raising morality is a stupendous assignment. It is a national challenge to bring revolution on the moral front. Moral teaching has to begin from their childhood at home and then school and college. We have to educate our teachers to teach students to emphasize the significance of high morals in all adverse circumstances. The students will have to be taught to remain honest in extreme poverty and difficult circumstances and they should not steal and should not accept any bribe in practical life as no amount of prayers etc. will wipe out this crime sin.

72. Enhance self-supervision and initiate surprise check system within the organization.

73. Enhance capability of internal auditors through recruitment of qualified and competent professionals in such departments/corporations where annual purchases of millions or billions of Rupees are involved such as PIA, Pakistan Railways, and Wapda, etc.

63

74. Strengthen job rotation policy within the departments, bodies and organizations wherever possible.

75. Design and introduce some performance indicators system in all anti-corruption organizations.

76. Introduce E-Government and e-procurement system as far as possible in all the Government institution as soon as possible.

77. Exercise transparency and fairness in staff recruitment, appraisal and promotion.

78. The Federal Ministry of Interior should prepare an Annual Anti-Corruption Plan to set target and provide professional support and ensure its sustainability through annual review in all Government Ministries / Departments / Bodies / Corporations.

79. Living standards of the people in the corruption infected secret branches of the offices / departments must be closely monitored by an independent agency on a regular basis. Those living beyond their means should be asked to justify their living standards.

80. We have to substantially increase the budget for education sector. Education helps reduce corruption as shown by a survey conducted by “India Today�. The least corrupt state in India is Kerala, which has the highest literacy rate in India. An uneducated population is more likely to be corrupt or befooled or exploited by the bureaucracy or the police to get illegal favors.

81. Sentences in corruption cases should be enhanced significantly through amendment in the relevant laws of the country.

82. The huge annual power theft losses of around Rs. 100 billion cannot be reduced without a higher level of morality of the people and the electricity supply companies officials. So a national campaign needs to be launched on a massive scale.

83. Details of various forms and kinds of corruption in Pakistan may be openly provided to the media for discussion and analysis in order to find ways to curb the evil practice. This will increase the knowledge and understanding of different forms of corruption practiced in the country and will contribute to reduction in its growth.

84. A National Anti-Corruption Information Management System may be designed for all stakeholders.

85. Major anti-corruption reforms may focus on agencies that are considered highly vulnerable to corruption such as Police, Tax, Customs, Health, Land, etc. as a policy priority.

86. It is important to seriously practically involve all the politicians, businessmen, officials and social actors in the anti-corruption drive.

87. In order to grapple with the corruption problem, there should be a sound knowledge with the anti-corruption agencies about the scope, patterns and system of the corrupt practices in different departments, offices, corporations and ministries of the Government so that the counter action plans are prepared accordingly.

88. Both the top and low level officers may be involved in preparation of corruption countering measures which are specific for that particular department or office.

89. Information, knowledge and system of corruption dynamics differ from department to department because of different nature of duties and responsibilities and exposure to public, etc. The anti-corruption strategy may, therefore, keep in view the specific environments in each case.

90. Pakistan is unfortunately a country where corruption is being fought by corrupt in many cases. We have an environment where the fight against corruption is being fought by those involved in the very practices they are trying to fight. This is a big dilemma in our struggle against corruption. Nevertheless, non-corrupt political leadership should emerge to help locate honest people to do this job.

91. Anti-corruption Commission may be established which will undertake independent surveys about the level of transparency, integrity and accountability within any Government body or corporation. The commission should develop institutional integrity index, state of corruption, public expenditure tracking survey, etc.

64

92. An independent NAB “Watchdog” may be posted in key corruption vulnerable organizations / offices such as Pakistan Railways, PIA, TDAP, etc. to keep watch on major procurements, misuse of official facilities, key appointment and transfers, etc. for his direct report to the NAB. 93. As a token of fair political resolve to check corruption, the political elite of the country consisting of the President, Prime Minister, Federal, Provincial Ministers Advisors, Senators, MNAs, MPAs and Secretaries and their families should publically solemnly pledge before the nation’s electronic media network that they will neither accept any illegal offer, in cash or kind, nor transfer funds illegally to foreign havens nor open Benami Accounts nor buy plots in others names etc. under any circumstances in addition to their constitutional oath.

94. In the election system in Pakistan, heavy investment is made by the candidates and the winning candidate then gets involved in corruption to recoup his investment. The solution is obviously to strictly reduce election expenses from the present Rs. 5-50 million to about Rs. 4 million, which approximately does not seem possible because all the candidates are indulging in spending on a vast scale. The Election Commission of Pakistan will have to be strengthened to closely monitor and keep the elections campaign trail record for assessing the expenses so that the candidates will not easily opt for extra spending.

95. Pakistan has a huge public sector, about 250 major corporations/ bodies or more. Privatization of the top loss making and corruption ridden bodies should be considered on priority basis which will help in eradication of corruption besides lessening burden on the Government resources.

96. In case any public enterprises cannot be privatized, their top management should be taken from the private sector and, it required, from Pakistanis living abroad.

97. Like charity, the war on corruption should begin at home. No solution to this evil lies outside the frontiers of Pakistan. This war should be fought by every organization / individual. TIP and Kamran Khan, for example, have been doing a commendable job. Anchors like Kamran Khan must be encouraged and rewarded to continue with their anti-corruption‘’ Jihad’’ or Holy War. 98. Pakistan may seek foreign funding to meet the extra cost of corruption prevention measures proposed in this chapter. Benefit-Cost ratio of this foreign assistance is expected to be high.

99. Each Government department, ministry and corporation should formulate its own code of conduct with reference to containing / reducing corruption keeping in view its own scope of responsibilities in addition to the changing its Rules and Procedures regarding appointments, transfers, purchases, sales, etc. as per requirement.

100. To keep up with the Joneses is a major factor in corruption proliferation. This problem can only be tackled by educating the people that the solution does not lie in indulging in illegal activities but to work hard to match the living standards of the elite.

101. People may be encouraged and guided through mass media campaigns that the corrupt acts be reported to NAB, FIA, PM Inspection Commission, Anti-Corruption Bureaus of the Provinces, Chief Minister’s Inspection Team, Public Accounts Committee of the Assembly etc. through e-mails or letters while their names will remain secret and in case any complaint / information is found to be true, they shall be rewarded.

102. In addition to the anti-corruption institutions in the country, an “Awam Ki Adalat” (People’s Court) forum may be aired by a combined body of the media and NGOs to listen to the exclusive complaints of the people and give their views or judgments for onward investigation

by NAB / FIA / ACEs. 103. Social reforms such as in the case of dowry system, lavish spending on marriages, funerals and birthdays etc. beyond their financial capability are required to be undertaken on a highly vigorous basis in order to discourage people to look for corrupt money.

65

104. Justice system needs to be speeded up. For example, the Judiciary takes an average of 880 days to settle a business dispute at a cost of 24% of the claim. This period must not exceed 6 months (180 days).

105. Improve the career path of those people working at corruption sensitive posts in each organization.

106. Allow the Chief Executive of the Department / Office to use range of penalties such as quick transfer, loss of facilities and travel privileges etc. against corrupt officials.

107. Carry out a fair assessment of corruption attractive posts in each department and take steps accordingly to reduce the temptation.

108. The media, banks and other relevant institutions may be asked to cooperate and provide secret information regarding suspected corruption deals.

109. Change the burden of proof so that the potentially corrupt public servants have to demonstrate their innocence or let both the parties be given the right to provide proof of their position.

110. Don’t keep the same public servants at the same corruption attractive posts for more than 3 years in any case.

111. Raise the moral cost of corruption through training, education and personal examples.

112. If possible, the government should consider transferring certain corruption - ridden tasks to private bodies / agents.

113. Strengthen and broaden the linkages between 2 Ps: Pay and Performance and another 2 Ps: Promotion and Performance 114. Denunciation of corrupt officials may be encouraged through their professional associations and their true stories be printed in their newsletters and websites.

115. Help and inform citizens about the places where corruption probably is high through promotion of civil society’s oversight, brochures, manuals and help desks, rules and laws relevant to the subject and publicity campaigns etc.

116. The next Table summarizes the ranking the top corruption clean countries in comparison with their ranking in respect of other relevant important indicators such as World Governance, Global Peace Index, GDP/Capita, Human Development Index, Ease of Doing Business and Prosperity Index which show that Pakistan will have to strive hard to achieve the fairly advanced level in different sectors of the economy, if it has to achieve success on the anticorruption front.

INDEX RATING

Corruption CPI ranking

Country

WGI

Global Peace

GDP/ Capita

HDI

Ease of Doing Business

Prosperity

1

New Zealand

6

2

2

Denmark

5

4

32

5

3

5

19

16

6

2

3

Finland

4

4

Sweden

2

7

21

22

10

3

13

13

10

--

5

Singapore

33

6

24

3

26

1

17

6

Norway

7

Netherlands

3

9

4

1

8

1

7

25

9

3

30

9

8 9

Australia

11

18

11

2

10

4

Switzerland

12

16

8

11

27

10

8

Canada

13

8

14

6

7

7

11

Luxembourg

14

--

2

25

45

--

12

Hong Kong

--

--

--

13

2

20

13

Germany

10

15

17

9

22

15

66

14

Japan

22

3

24

12

18

18

15

Austria

6

6

10

19

32

14

16

Barbados

16

--

40

47

--

--

17

United Kingdom

18

26

22

28

4

13

18

Belgium

14

14

20

18

25

16

19

Ireland

15

11

15

7

9

11

20

Bahamas

23

--

--

--

77

--

21

Chile

24

38

55

44

43

58

22

Qatar

81

12

1

37

50

--

23

United States

32

82

7

4

5

10

24

France

15

36

23

20

26

19

25

Saint Lucia

41

--

70

82

53

--

26

Uruguay

24

21

59

--

124

28

27

United Arab Emirates

88

33

6

30

6

30

28

Estonia

42

--

45

34

17

35

29

Cyprus

28

71

31

31

37

--

30

Spain

19

28

28

23

49

23

134

Pakistan

166 146 130 145 Sources: International Surveys (for different years)

83

109

117. Every registered political party in the country should have its own “Anti-Corruption Wing� to undertake investigation and research and recommend measures in respect of corruption cases by its own members as well as by all others. The Election Commission must make the establishment of the wing compulsory before the next elections.

118. Across-the-board accountability concept has been generally restricted to politicians and bureaucrats in Pakistan. The misconduct and illegal tasks of businessmen, industrial class and professionals like lawyers, contractors, doctors etc. should also be vigorously pursued by NAB/FIA. 119. Transfer of officials involved in investigation of fraud or corruption cases should not be allowed midway through specific clause at the time of their appointment as the investigating officer by the concerned agency till the final resolution of the case by the court or the departmental enquiry unless some compelling circumstances force the transfer. This is very important issue in order to trace and punish the culprits without any fear of transfer and dismissal. The concerned agency will have to make some specific suitable changes in its Rules of Business or SOPs accordingly. The Supreme Court had been doing this job by ordering cancellation of such transfers in the past. The Establishment Division as well as the concerned departments of the Provincial Governments should make some suitable provisions in this regard in their transfer rules.

120. In order to stop or reduce the theft of gas and electricity losses which run into billions of Rupees every year, their relevant cells may be significantly strengthened through additional manpower besides calling assistance from the Pakistan Army or Rangers for surprise checks along with additional tougher legislation and formation of special courts for speedy disposals of such cases.

67

121. The public may be encouraged through rewards for reporting of the theft of utilities or instances of corruption in the companies. The websites of PEPCO, SSGPL, SNGPL KESC, C&W Department and Irrigation Department etc. should open their own separate sites for filling of such complaints and encourage people through media for reporting.

122. An Annual Anti-Corruption Day may be fixed in Pakistan. On this day at least, all Pakistanis shall be requested neither to take nor give bribe. Media should also show special programs, features and dramas on evil consequences of corruption and hold seminars and debates. This anti-corruption day is in addition to the International Corruption Day observed on December 9 every year. This day shall publicize the efforts of the government of its fight against corruption for public awareness besides revealing stories of victims of corruption.

123. The tax machinery of Pakistan needs to be drastically reformed in order to improve TaxGDP ratio. So there is a strong need to reform the procedures of selection, promotion, placement and performance within FBR. 124. Foreign consultants may be hired and posted in FBR for their independent views and suggestions to enhance its performance.

125. Culture of FBR and similar bodies needs to be drastically reformed. They should refuse to accept the corrupt behavior of its employees. The corrupt employees should be made frightening examples for other employees and other institutions in the whole country. This should be done through prompt and quick transfer or suspension or loss of retirement benefits through revision in the Service Rules.

126. An anti-corruption strategy will have to address the needs, greed and motives of corruption on all forums simultaneously. If a senior official is indulging in corruption, low level officials have more reasons to engage in corruption or they are led into these acts by the behavior of their superiors. So this battle will primarily start from above.

127. The accountability process within revenue earning institutions needs to be strengthened so that the officials remain under strict watch and become careful before committing corrupt acts.

128. Tax evasion means low quality of governance and erosion of state legitimacy as well as low morality level. Poor governance and tax evasion are closely related to each other in the reverse order. If the governance is poor, tax evasion will be high and vice versa. Improving governance, which includes a variety of vital functions of government, is a tall order in Pakistan. In any case, there should be no hope for tackling corruption effectively without enhancement in the governance indicators. So it is extremely important that overall standards of governance be improved appreciably. That, however, can be more easily said than done.

129. Death penalty should be considered in case of proven big financial crimes, committed by the public representatives or public servants or their families as well as the private people etc. The crime of corruption is no less serious than the crime of murder. A murder is a physical crime and affects a family only whereas corruption is a financial crime and it seriously affects the society as a whole.

130. An award may be given to the whistleblowers for exposing corruption and later cases be sent to the courts of law if they turn out to be true.

131. Sometimes anonymous companies or trusts are formed to transfer and hide money stolen through corruption. It is difficult to identify them and therefore a central public register containing ownership details should be set up to tighten up corporate oversight and the public be informed accordingly through electronic & print media.

132. The major newspapers/ magazines should announce their own Corruption Reporter Award annually for leaking the corruption stories and investigation.

133. The judges may be provided special incentives for deciding corruption cases in a short period of time.

134. There is strong need to encourage and produce such people like Zafar Qureshi, Sohail Ahmed, Brig Fahim, Javed Noor and Tariq Khosa. The civil society and the union of journalists should take a step forward to announce special award in recognition of the services

68

rendered by such people in exposing corruption and standing up for righteousness and encouraging others to follow them. The country needs to have only about 500-1000 such people, which will start turning around the fate of the state. A separate plan is required to encourage such people to come out without fear or favor and they are provided physical and financial support and service security. Their services should be acknowledged and they be given the status of heroes at the official level through the National Awards.

135. Undercover operations to discover corruption activities are not being undertaken in Pakistan.

There is a strong need to introduce the system which will be extremely helpful in reducing the corruption level in Pakistan. Merely the threat of this form of locating corruption activities will act as a deterrent. This undercover agent will act as a person trying to obtain a favor fully loaded with secret electronic gadgets, which can provide sufficient evidence of corruption in the court.

136. A corrupt democracy is a kind of disaster that has happened in Pakistan. Average economic growth rate in Pakistan has been higher under the military rule than under the democratic regimes and the best kind of democracy has done not better than the military regime and one major reason being the corruption appears to be equal under the democratic regime in Pakistan. The previous democratic government was considered to be highly corrupt with a large no. of members of parliament and ministers and some of them with even fake degrees.

There is need to amend the Constitution and allow technocrats become ministers to enhance the quality of governance and reduce corruption.

137. A unique initiative has been undertaken by the Pakistani business leaders in Europe with the objective to socially boycott all such people who hide their corrupt income and wealth in the western countries and live a life of extreme luxury and they will be named, hounded and shamed. The initiative needs to be fully supported by the Pakistan anti-corruption agencies, NGOs and civil society, media, etc. This initiative has some potential to contribute to reduction in flight of capital and illegal wealth from Pakistan.

138. According to an international survey titled “Right to Information” of 111 countries, Pakistan was ranked at 91st position whereas India has 4th position. This “Right to Information” position in Pakistan shows that the people are denied information or information supplied is incorrect or provided after some delay etc. We shall have to raise our ranking as per requirements of this survey as a part of the corruption cures policy.

139. It is recommended that the proven tax dodgers and those who indulge in under or over invoicing of large amounts (say over Rs. 1.00 million) be sent to jail for a small period, say even one week only, and this will certainly help in reducing tax evasion. Role of all businessmen and professional associations like Chambers of Commerce & Industry, manufacturers, traders, and market management etc. must be significantly enhanced, through amendments in their Charters to combat corruption through different ways such as suspension of the membership or fine etc. in case charges of involvement in corruption in any manner are proved.

140. The private sector being the supply side of corruption should be educated about the evils of corruption in order to restrain it from indulging in this practice. Regularly, a few days’ course may, therefore, be organized for the private sector bosses with syllabus determined by Islamic scholars, economists and anti-corruption agencies’ officials.

141. Another way to reduce malpractices and corruption is to strengthen the manpower staff of the Customs Department to conduct raids of the go-downs of the smuggled goods as the customs staff can be beaten black and blue. It is, therefore necessary that a special antismuggling raiding team be constituted along with the Rangers personnel to raid these places.

This will discourage the import of illegal or smuggling of goods in the country because of the strong fear of raids.

142. There is massive under invoicing of imports especially of goods coming from China. To combat the menace of corruption through under-invoicing, all the importers may be asked to

69

submit export documents of the Chinese suppliers of the same goods to other countries. It is not clear how it will be practically possible but this will be probably one way to eliminate or reduce a major source of corruption in the Customs Department and losses of the national financial kit.

143. It is not possible to raise revenues by reducing corruption in the existing tax culture scenario, as the current scenario discourages those who are paying. The non-tax paying behavior of the elite is deplorable and thus there is a strong need to make them pay their dues by raising their morality degree through public education campaigns in the print media and TV channels.

144. There is a strong relationship between corruption and the tax receipts. If corruption perception is high in a country, the tax receipts are low. So the objective of corruption elimination or reduction and tax-raising will need to be pursued simultaneously.

145. Weak and corrupt institutions impede target of raising tax revenues. There is vital requirement to make the major revenue generating institutions work fairly, efficiently and honestly, otherwise enhancement in revenue income of the country will remain a distant dream.

146. Role of women in prevention corruption has not been given due significance. It is, therefore, important that the women be actively involved in this drive through special campaign in the women / girl schools and colleges, media’s shows on women etc.

147. At the end of declaration of the assets and income statement of the MNAs, MPAs, Senators, and all those who are submitting election contesting papers etc., an additional statement may compulsorily be made / signed by the concerned representative which says: “If any person has knowledge of my any other income or assets in Pakistan and / or abroad in addition to what I have declared above, he/she shall have the legal right to get it transferred to his or her name or in the name of the Government and he may initiate legal proceeding accordingly and I hereby fully authorize him to do so and in case I refuse to do so, the court may issue necessary order in this connection.”

148. FBR refund scams included Rs. 220 million to a firm before its filing of income tax returns and just before retirement of the concerned officer and Rs. 2.5 billion to KESC despite it is required to pay Rs. 1.8 billion to the national exchequer. (“The News” 15-9-2012), and misuse of SRO in case of 7000 cases causing a loss of Rs. 1.874 billion (The News 22-9-2012). The FBR must take drastic measures to avoid repetition of such scandals.

149. The PPRA office should be made more effective for monitoring functions. Its monitoring cell should be staffed with honest and high standard professionals.

150. It must be made compulsory for all public sector institutions to disclose all aspects of their new projects from conception to design to bidding for final contract awards for sake of transparency.

151. PPRA, NAB, TIP and some selected NGOs may be asked to independently monitor the contract award giving process as well as the execution process of major government-funded projects.

152. Physical and financial audits of Government projects should be allowed to be conducted by independent private firms where it is considered highly important.

153. The Government may introduce a new law to be called Whistleblower Act on the pattern of India to further strengthen our anti-corruption commitment.

154. There is strong need to prepare a “Morality Development Plan” particularly for the country’s elite class for its wide publicity and later some test may be organized/conducted to assess their morality standards.

155. The FBR must take to task all those officials who are involved in fake refunds cases despite issuance of red alerts.

156. The state must intervene and promote tax culture in the society through media campaigns i.e., setting personal examples by the political leadership and the elite class by projections of the top tax paying persons.

70

157. The accountability process of NAB must be above board and should not appear to look like a political witch-hunt.

158. There is no tradition of holding anti-graft rallies although we daily see rallies on different issues, small and big, all over the country. The civil society / NGOs should enter this field of holding anti-graft rallies in all major cities of the country at least once a month but of course, without blocking roads or highways.

159. Both the motives and opportunities for corruption are to be minimized to reduce the level of corruption in Pakistan. Both these are equally important to tackle the menace and so cover almost all the sectors of life.

160. Secret interviews of the corrupt should be somehow managed for better understanding of the motives, mechanism and identification of opportunities etc.

161. Honest officials are usually not posted in lucrative assignments. If they, somehow, are placed in such posts, they don’t serve at the post for not more than a few months and are transferred to non-strategic posts. So the transfer policy needs to be revised and there must be sound and solid grounds to transfer an official without completion of his minimum period of 3 years. The honesty test of an officer appears to be that his transfer is frequent and he is not likely to remain in lucrative and attractive post for a longer period.

162. As corruption is high, so the tax evasion is high in Pakistan. For instance, in case of foreign trade taxes, low-level officers are also likely to be involved and they share illegal gains through active collaboration of their seniors. The involvements of low-level officers erode confidence and they need to be provided training through a special course.

163. In the state institutions, appointment of officials with corrupt reputation is itself a corrupt act and as bad as corruption itself. So the reforms are required in the management system and the procedures for selection, promotion, placement and transfer need to be vastly improved to address the tax corruption issue.

164. Teach morality in homes, schools and colleges, along with the concept of right and wrong with special reference to corruption.

165. Minimizing the size of the government budget, wherever feasible, is another way to limit the corruption but this cannot happen in Pakistan for various political and economic reasons.

166. Some persons are allowed plots at consession rates, which appear to have no justification.

This practice needs to be stopped or reviewed. A research study should be conducted to find out its rationale and justification.

167. It must be made compulsory for all major tenders / procurement by the public sector enterprises to inform NAB and Anti-corruption Establishment, Prime Minister’s Inspection Commission, Public Accounts Committee, etc. before the start of the process.

168. An exercise may be undertaken to identify a list of officials who frequently get transferred and it should be uploaded on the website of an NGO as well as publicized on quarterly basis.

169. In Rs.142 billion case in Karak District of KPK, the accused were granted bail by court. The FIA is feeling helpless in this case. (Daily “The New” 22-04-2016). There should be amendment in the law to ensure that such accused do not get bail and their conviction is ensured.

170. The Punjab Govt. has recently introduced a unique system called “Citizens Feedback Model” (CFM) to check petty corruption in Govt. Departments such as police, revenue, hospital, etc. which enables citizens of the Punjab province to call 15 for police help, acquire emergency assistance in the hospital, get property registration service and in response, he will receive a computer generated call or SMS and this will be a check against any bribe payment etc. Such service needs to be introduced in all other provinces of Pakistan.

171. An Integrity Hotline in all government institutions may be set up where a person can submit a complaint or information about the unethical practices being adopted by the staff in order to fix the problem at the earliest.

71

172. Spot checks by forensic auditors or independent agency inspectors to ensure strict compliance with the contract awarding procedures can contribute to reduce corruption.

173. There should be taxation on all sources of income irrespective of their sources to reduce the scope of corruption in the FBR, excluding National Savings Certificates for the senior citizens where imposition of even withholding tax is unfair & cruel.

174. The major focus of the Federal Board of Revenue should be the elite class of the country through carrot and stick policy as well as through “name and shame” by publication of the publication of the names of the major tax dodgers in the newspapers besides freezing their bank accounts, ban on foreign travels, seizing of their ill-gotten assets, publication of their photographs and ban on taking fresh bank loans and contesting elections etc.

175. The NAB/FIA/ACEs should invite people to send their true bribe stories and these should be placed on its website with names of the corrupt changed for sake of secrecy to better understand and comprehend the system of corruption and formulate revised rules and policies accordingly. There should be some annual award for the most interesting and worth appreciation stories for the anti-corruption crusade.

176. Each Ministry, Department, Institution, College, University, Hospital etc. and so in other words, every government or semi-government institution, big or small, should invite suggestions and recommendations from their staff employees, high or low, and from those private sector personnel dealing with them, directly or indirectly, to eradicate or control corruption in their organizations, without any fear or favor and these may be forwarded to the NAB, FIA, PMIC, Chief Justice of the Supreme Court as well as High Courts, Anti-corruption Departments, NGOs, Speakers of National and Provincial Assemblies etc. who may undertake independent scrutiny and make policy decisions accordingly within their own jurisdiction.

177. It is important that the justice system be modernized through the establishment of e-branches of tax and finance-related cases for quick justice.

178. A study should be prepared by each department/agency/enterprise according to its requirement titled “Corruption Prevention Strategy” and be placed prominently on the tables of the officials and a copy be supplied to the bidders.

179. Select and appoint honest and competent public prosecutors and not corrupt officials in AntiCorruption agencies to pursue the corruption cases at market rates.

180. There may be an independent inspection unit or officers within each organization to act as a watchdog for all major procurements.

181. The top man in each department / organization should organize quarterly workshops where the concerned officials and other private stakeholders be invited to address the issue of corruption and how to deal with it. From this event, new ideas will emerge to tackle the menace. Such a workshop may be made compulsory by an executive order from the top and its proceedings be circulated to all the concerned.

182. Each department’s head may make it compulsory for all its officials to sign a special and separate code of conduct including no acceptance of bribes.

183. Revenue generating departments/offices staff may be allowed special bonus if it exceeds targets by 25-50%, for instance, as an incentive to avoid getting corruption.

184. A corruption prevention unit may be established in all major offices / enterprises / departments to review procedures and reduce corruption opportunities, etc.

185. Screen out dishonest people after enquires through special legislation in different ministries / departments.

186. Reward specific honest actions in their respective duties of the officials in order to reduce corruption in every organization.

187. Improve the career path for officials so that the incentives to get rich quick are reduced.

188. The website of all anti-corruption agencies as well as the Government officials should show in their all Ads that the Quaid-e-Azam paid Rs.4498 as Income-Tax in 1939-40 about seventy seven years back and at current prices, it should be about Rs.450 million.

72

189. Non-monetary awards like foreign training may be given as an incentive for the honest officers.

190. Improve auditing and management information systems within the offices.

191. Gather all possible information and links regarding corruption possibilities in each office / ministry/department/institution/ organization etc. and prepare a research paper which may be revised from time to time regularly and upload the information on the website.

192. Collect information from the third parties like media, banks and other concerned people about the officials with corrupt reputation in different organizations and transfer, demote or terminate their services after enquiry.

193. Create an inter-agency committee to coordinate the anti-corruption efforts of all the agencies involved in this exercise at the Ministerial level with a technical committee at its subordinate level.

194. Involve the Chambers of Commerce for diagnostic studies of the corrupt practices and systems in different institutions in the country.

195. A Corruption Equation is given below: C = M+D-A Where C stands for Corruption M for Monopoly Power D Discretion of Officials and A stands for Accountability If we have to effectively deal with this problem, we shall to have to reduce M&D and enhance Accountability.

196. A book on corruption written from the Islamic views titled “Why We Should Not Take Bribe” written by Maulana Muhammad Faheem Usmani and translated into English by Muhammad Saleem Butt may be sent / circulated to all the Agencies / Departments of the Federal and Provincial Governments for their study.

197. Corruption is considered to be a cancer, which is crippling the Pakistan’s economy, and it is a fatal disease and it must be fought with lethal weapons. Fighting this disease is not easy as it is generally assumed. The virus of corruption has touched all the arteries of our body and so we need to eliminate various words in our official terminology like eminent professional, sufficiently qualified, public interest and substantial experience to avoid interpretation, which suits the concerned people.

198. In South Korea, its former President Lee Myung Bak, made an open apology to the nation for the alleged involvement in corruption cases of his elder brother and close aides. No such great incident has every happened engaged in the Pakistan’s history. Instead of apologizing, the Pakistani top elite has remained engaged in refuting the charges or defending their associates. Our political leadership will have to learn the lesson from the South Korean President to set personal examples.

199. The NAB Chief must be of the highest and unquestionable integrity, How to choose a person of an integrity matching the status of the Chairman of a body like NAB is a very difficult objective. It is suggested that the appointment of the Chairman should be made by a combined committee of the National Assembly and Senate members or judges of the Supreme Court and High Courts through open Ad. 200. Some Pakistanis are awarded plots in expensive societies for totally unjust reasons. All of us without distinction should try to emulate Dr. A.Q. Khan, father of our nuclear bomb. He says: “So repugnant is this to me that I never asked for, or accepted, a single square yard of land.

This despite the fact that I gave up a bright future in Europe, gave the country $2 billion worth of free technology and turned Pakistan into a nuclear and missile power. The house we possess and are living is built on a plot bought for Rs.150, 000 in the open market. I never

73

asked for, or received, a higher salary than any of my colleagues. I sincerely believe that I have served my country in a much better way than others. (Daily” The News”23-07-2012).

201. The customs clearance procedures need to be reduced for easy access for the importers for assessment and valuation.

202. Pakistan is an unusual country. Here the consultant to the top country’s anti-corruption watch-dog, NAB, was alleged to be involved in embezzlement of Rs. 600 million by the Punjab Livestock Department. Mere allegation in this case is not an ordinary matter but this does show how difficult it is to find honest people in the country. So the appointment of people at such crucial posts must be made of only those with extraordinary spotless past.

203. Award certificate of merit to students who write excellent essays on corruption in internal final examinations of 9th or 10th class.

204. Incorporate anti-corruption chapters in the textbooks of High Schools by revising the textbooks at the earliest all over the country.

205. A system of Integrity Bonus should be introduced for all MNAs/MPAs and Senators in case the TIP or any major survey shows decline in corruption perception index for the public representatives.

206. Annual Award of Certificate of Merit for Incorruptible may be given to the public representatives as may be determined through a survey by an independent agency.

207. A poem on anti-corruption theme may be written by a team of renowned poets to be recited daily or from time to time in schools and TV networks.

208. It has been observed that the banks lack serious interest in recovery of their outstanding dues for different reasons. The FIA / NAB should be authorized to take appropriate measures against the banks management, such as bringing them before the court or the Board of Directors of the Bank.

209. A Moral Up-gradation Cell may be established in the Federal and Provincial Government Departments to devise ways and means to tackle malpractices, etc.

210. Anti-corruption education should be made an integral part of school / college education through different means in order to raise awareness at the early age of life to promote personal integrity, civil responsibility and understanding of duties to the society and ill effects of corruption on the country‘s economic, political and social life through special lectures.

211. All public sector bodies must coin their own anti-corruption slogan for exhibiting on their websites besides placing bill boards at appropriate sites where prospects / chances of corruption possibly exist.

212. All objections raised by the TIP regarding procurement process followed by the government must be seriously considered and appropriate steps be taken to meet them. Some procedures should be laid down as to how to meet the objections expressed by the TIP from time to time through some independent evaluation and assessment. All government institutions must be directed to keep in view the requirements of TIP while they are undertaking their procurement.

213. The TIP needs to be strengthened in respect of its technical competence so that its analysis and objections raised in respect of the govt. purchases and other functions are accurate through national and international cooperation and financial assistance. The TIP should have well equipped offices in all the provinces of Pakistan to keep close watch on daily basis.

214. The high cost of election campaign forces the elected MNAs / MPAs to accumulate money through right or wrong measures. So it is important to consider introduction of state funding as a part of election reforms so that the elected representatives are not under compulsion to make up for their investment and receive commissions.

215. Each ministry, department, institution, corporation and public or semi-public sector entity of all federal and provincial levels should have its own corruption windows, big or small, and such major or minor corrupt possibilities must be thoroughly identified and made public for all the relevant authorities to know and then remedial measures will require to be recommended and action taken accordingly in each and every case, small and big.

74

216. A Special Commission may be formed to invite suggestions or opinions on the issue of corruption from all Federal and Provincial Government Departments for necessary action.

Active public participation in this gigantic exercise, which is a must, will help in curbing corruption in the country.

217. By presenting himself and his team before the Transparency International Pakistan, Chief Minister, Punjab, Mian Muhammad Shahbaz Sharif, has surely set an example for others to follow. Other Chief Ministers should follow him.

218. All major contracts should be placed before TIP or any other agency for their accountability

by Federal and Provincial Governments and Public Sector Corporations at the end of each year for their assessment / analysis / views / recommendations.

219. It should be made mandatory for all those contesting elections to declare their income, income tax and assets statements of last five year with attached documentations as evidence through the website of the Election Commission and the public should have the free access of this information without any difficulty and freely before the elections date.

220. Anti-corruption drives should not be selective which cannot prove to be really effective.

Such drives should be across-the-board without any distinction or favor and should not be targeted only against political or other opponents or confined to one province.

221. Mobilize, encourage and provide incentives and support to the civil society and media to organize and run massive campaigns against corruption.

222. Identify new incentives to demolish incentives of corruption.

223. Propagate zero tolerance policy against corruption for all levels of the government through public awareness campaigns.

224. High profile cases in NAB, FIA etc. should not be assigned to junior officers as they are not likely to meet the high pressures, which may be exerted to change the course or results of the enquiries.

225. The officers engaged in corruption enquiry cases in NAB/ FIA etc. should have the requisite qualifications with training in anti-graft intricacies and morality and they should also withstand the work and other pressures etc. They should have service protection for a minimum period of 5 years and their frequent transfers should not be allowed without solid reasons. Their selection procedure should be redesigned in order to avoid another Faisal Kamran in future.

226. In case of all High Schools in Pakistan, every student should be asked to write an essay on anti-corruption in Urdu or English and the writer of the best essay be awarded a cash award of Rs.10000 ever year in every school to implant in their minds, in the initial years of their life, the importance of leading corruption free life in their practical life.

227. Many corrupt people run away to foreign countries fearing arrest. The FIA / NAB will have to work hard, efficiently and formulate some system in order to stop their travel or ensure their return to Pakistan.

228. In corruption attractive places, such as police stations, judicial offices, revenue offices etc. a board should be installed with the slogan “both corruption giver and taker will go to hell’’ at different prominent places in order to constantly remind them about the evil.

229. The Chairman, NAB, Prime Minister’s Inspection Commission, Head of the AntiCorruption Agencies in the provinces and Director General, FIA, etc. should voluntarily declare their assets and income statements at the time of their appointments and annually for information of the general public on their websites. Similar information should also be provided of the Heads of the Divisions / Sections of these organizations.

230. There has been reportedly misuse of secret funds by the Ministries and others. There is need to place some check and pre-audit of such funds within the concerned ministry / agency and information should remain available within the institution for the top men, both incoming and outgoing.

75

231. According to Dr. M. Iqbal Wahla in his article titled “Test of Times” in the daily “News” 07.02.2013, all candidates contesting election must submit the following in their nomination papers for the elections.

“Declaration (To be submitted with nomination papers by candidates for elected offices)1.This declaration is inclusive of spouse, children and dependents.

2.I am a national of Pakistan and do not have dual nationality.

3.I do file my annual Income Tax / Wealth Tax returns covering income / wealth from all sources and I have not concealed any income or asset anywhere in the world.

4.I do regularly pay my utility bills.

5.I have never concealed facts in matters relating to my academic qualifications.

6.I have never and will never misuse any state funds directly or indirectly.

7.I have never / will never obstruct administration of justice by making any recommendations for benefits to persons / parties against rules, laws and rights.

8.I do not have either not taken any loans nor I am repaying the bank loans without any delay or write off.

9.I have never and will never sponsor / recommend or be a party in any act to deprive deserving persons / parties of their just, deserving, legal and lawful rights or help the undeserving persons / party to enjoy illegal, unlawful and non-deserving benefits.

10.I solemnly declare that I have made this declaration knowingly, willingly and consciously. If at any stage any item in my declaration is proven wrong in a court of law, before the Election Commission of Pakistan or at another public forum, I will automatically stand disqualified for any Public / Elected Office.”

We are of the view that there should be some additions in the above declaration by making it compulsory for all the contesting candidates for all kinds of elections in Pakistan as given below: 11.I solemnly declare that I have no offshore accounts or companies or firms or bank accounts or foreign investment in my name or in others names on my behalf.

12.I have not paid or committed to pay any amount to any political party, directly or directly, for grant of the party ticket.

13.I will not commit any illegal or immoral act during my election campaign or Election Day to win the election, or in other words, such acts which constitute rigging the election in any manner”.

232. A website ‘’I paid Bribe’’ has been opened and there is need to make it widely known to people. There should be some way that action on these stories may be initiated by an agency or NAB to get more comprehensive information so that action could be initiated directly against the illegally accused persons or appropriate measures or legislation could be considered or initiated.

233. The FBR should release in the press and publish a brochure every year of 1000 TOP TAX PAYERS of the country. The tax payments by all the elected representatives should also be uploaded of the last 10 years in a summarized table form on the FBR website.

234. One of the common arguments given by the Pakistanis for not paying taxes is that their money is wasted on luxuries of the political and bureaucratic class or wasted through their corruption. The argument is no excuse to avoid paying taxes. However, a non-tax payer must be educated that he is certainly enjoying many Government funded facilities.

235. Issuance of SRO by the Federal Board of Revenue has been another method of corruption to benefit companies. The culture of issuance of SRO should be strictly regulated.

236. There should be some ways to protect public servants from revenge by the politicians who come back to power who are or were being investigated by different departments like NAB, FIA etc. Such people should not be made OSD or demoted or deliberately placed in useless posts where their talents and energy are wasted.

76

237. The Tax Forms are beyond comprehension even of men of high intelligence and education and so they need to be simplified to 2 pages only for each category of taxpayers in order to enable them file tax return without the help of the Tax Consultants.

238. When the top leadership issues wrong orders, the lower hierarchy from the Secretary to the Chief Accounts Officer implements orders without saying no, because otherwise, he is very likely to be transferred to distant places or suspended from service etc. In this kind of situation, what is the alternate available to the junior officers? It is a very difficult question to answer. It is suggested that the rules may be amended to allow a subordinate officer to write these words: “I disagree but in view of orders from above, I accept.”

239. Compulsory online tax filing shows that the FBR is completely unaware of the hard ground realities that the FBR online system is extremely inefficient and an overwhelming majority of the tax payers does not possess the adequate knowledge to file electronic returns and computing the tax etc. The present tax system in Pakistan has 3Cs’: Complicated, Confusing and Complex. When you make such things difficult, you will only add to corruption and so the FBR should make things simple for raising the no. of tax payers and reducing corruption opportunities.

240. All Regulatory Authorities viz. SECP, CCP, PPRA, EPA, SBP, OGRA, PEMRA, PTA, PFRA and NEPRA etc. should be made fully autonomous, comprising of professionals and selected through open merit without any nominations from the government. These should be financially self-generating entities and not dependent on government finances and answerable only to the Public Accounts Committee.

241. The Freedom of Information Ordinance 2002 should be revised for deletion of all exemptions except for national security reasons and all information under Freedom of Information Ordinance 2002 should be made available on the websites of all ministries / departments / organizations to comply with the Constitution’s Article 19A. 242. Only a registered taxpayer should be allowed to buy land, business, industrial unit, properties and cars etc.

243. Foreign countries should be asked through official communication to return Pakistanis money in their banks, which is not tax paid. The Government, under Article 35 (1) of the Avoidance of Double Taxation Treaty with Switzerland and Return of Illicit Assets Act or “RIAA” should seek information regarding Pakistanis maintaining accounts in the alpine state as has been done by many countries.

244. A political party should suspend its member from the party membership post in case he is faced with court case on corruption charge and will only be restored once he is acquitted from the court.

245. Conflict of interest provisions should be mandatory in all public office holders’ jobs description, as well as corporations and authorities, including Board of Directors of Public Sector Enterprises.

246. Control of Ministry of Information over government advertisements should be deregulated.

Each public sector institution should manage its own advertisement and media policy and no government-sponsored advertisement will have photograph of any political person other than the Quaid-e-Azam.

247. All state owned urban land should only be disposed of by open public auction.

248. For preventing conflicts of interest, all officers of civilian and other departments of above BPS-20 or equivalent should not, for period of 2 years from the date from when they retire and cease to hold office, accept any employment or consultancy of any private sector undertaking or business.

249. All the banks may be directed to provide all major suspicious transactions on very frequent basis to the State Bank of Pakistan before the concerned Bank depositor is asked to clarify his position.

77

250. It is amazing to note that Pakistan was added in the blacklist of nations that failed to meet the international standard on money laundering in 2012. The Financial Action Task Force (FATF) has found Pakistan along with 5 other countries, which are flaunting recommendations made to them towards issues of money laundering and financing of terrorism. Pakistan must meet the international standards set by FATT. 251. Pakistan must take steps to combat money laundering immediately with suitable and effective legal system. Regulatory regime should be set up to ensure that the financial institutions are complying with customers identification procedures, record keeping, reporting of suspicious transactions and preventing criminal use of their channels for money laundering.

In addition, each country should unhesitatingly provide required information, mutual legal assurance for prosecution and judicial proceedings and open channels of communication to tackle this international menace. Without effectively tackling this monster, it is not expected to restrain the corruption problem in Pakistan.

252. Pakistan should sign Anti-Smuggling Cooperation Agreements with China, Afghanistan, India and Iran.

253. The bank accounts opening form should contain columns for information of \other accounts in Pakistan and abroad. It will require the new account opener to provide details of all other active accounts in Pakistan and abroad and in case of wrong information, the bank will have the right to make the account un-operational till a decisions is made by a committee / board especially constituted for the purpose.

254. Pakistan should host an international Anti-corruption Conference in Islamabad to discuss and make Pakistan specific recommendations for eradication of this evil.

255. It is extremely important that the Pakistan Government sign an agreement with the Swiss Government, which will enable it to obtain information of all Pakistanis having stashed, estimated at about Rs.153 billion in the Swiss Banks. In terms of ranking, Pakistan’s position is 69th ahead of India at 70th, while the top countries are UK, USA, Germany, France, Hong Kong, Singapore, Japan, Italy, Australia, Russia, Netherlands, Saudi Arabia and Cyprus.

256. All newspapers should be requested to assign special space on corruption related news daily.

257. According to a report in Daily “Dawn” 09.07.2013, the conviction rate of ACE in Punjab is 5% and 35-45% in KPK Province. So it is clear that it is imperative to raise this rate through modern investigation techniques and efficiencies.

258. We should name and openly criticize and ostracize all those Bank Branch management who facilitate the corrupt.

259. “Know your Customer” rules of the Banks should be extended to one or two top beneficiaries of the account holder as well.

260. Establishment of a new Commission by replacement of NAB requires incorporation of the experience of NAB to be really more effective.

261. The Course Work for the new entrants in the Civil Service should include surveys of the least corrupt countries besides, study of their anti-corruption strategies and directions etc.

262. A compulsory course should be introduced in MBA in all the Universities of the country in the subject of Anti-Corruption.

263. The stories of experience and suggestions from the complainants of the NAB /FIA /ACEs should be sought, online or by mail,with regards to each of the three stages of corruptioncontrol, catch and conviction-which will be really helpful in improving these institutions.These bodies must encourage getting such inputs.

264. Restricting the scope of the new body replacing NAB to only the Federal Institutions is not a positive development in the struggle against corruption as the provincial watchdogs are not fully independent are directly or indirectly controlled by the provincial Chief Ministers and so let these be first made fully autonomous.

265. According to the recent Election Reforms Bill,2017,maximum limit of election expenses shall be Rs. 4 million for the National Assembly, Rs.2 million for the provincial assembly and

78

Rs.1.5 million for the Senate .The expenses will be monitored by the District Monitoring Committees and so they will have to be very strong as they will be watching a large variety of financially strong and influential candidates.

266. Pakistan and Switzerland should strike a deal to allow Swiss Banks to pay fines to avoid or defer prosecution over tax evasion by their Pakistani customers. This will allow Swiss Banks to disclose some previously hidden information or face penalties of up-to 50% of assets.

267. The US AID has advertised in the press of establishing an “Anti-Fraud Hotline” for disclosure or reporting of illegal or corrupt action in respect of the US AID funded projects. A similar kind of hotline should also be introduced by all other foreign governments for their projects being financed in Pakistan.

268. The Punjab Government has introduced an SMS service asking for information regarding payment of bribe or speed money to Lahore Development Authority, which is a remarkable anti-corruption idea (Daily “The News” 01.08.2013). This service needs to be gradually extended to all the government and semi-government institutions in Pakistan.

269. The NAB plea bargain with the Bank of Punjab fraud case had been cancelled by the Lahore High Court (Daily “The News” 04.08.2013) considering it as flawed. The NAB will have to improve its professional efficiency and integrity in the interest of the country. In this scam, properties worth Rs.40 million were shown for Rs.20 billion, 50 times higher.

270. An SMS Corruption Complaint Service may be introduced by all Ministries / Departments /Corporations etc. of the Federal and Provincial Governments and displayed on their websites along with action taken.

271. The Federal Board of Revenue needs to be restructured with an independent Board of Directors selected by the Public Service Commission.

272. Corruption in the Custom Department can be reduced by computerizing all inflows and outflows recording and cross checking. This will help in creating a corruption curtailment efficient and result oriented tax culture.

273. The PML (N) in its Election Manifesto had promised that it would adopt a zero tolerance policy towards corruption through ruthless accountability of the corrupt. The Government must take all appropriate measures on top priority basis to fulfill its commitment, although the PML (N) government has not as yet been blamed for any major corruption allegation by its Ministers etc.

274. Source of funding of the election campaign of the contesting candidates with their income and assets statements or their cash flow sources should be disclosed and made public. In cases of discrepancy, the case must be referred to the courts for necessary action. There should be complete ban on all contesting candidates who do not own National Tax Nos. and file Tax returns.

275. A candidate contesting elections for the National and Provincial Assembly is generally believed to spend a few millions of rupees in his election campaign, which is of course difficult for any agency to verify it. But his tax payments must be somewhere in line with his spending on election campaign. A mechanism must be put in place in the ECP to compare these figures and if gross difference is found, necessary action should be taken.

276. There is strong need to avoid refunds release by FBR against bogus/fake invoices running into billions of Rupees in the past.

277. Illegal wealth or assets are commonly shown by many persons to be inherited or belong to their parents, father or mother or wife, dead or alive. It is, therefore, necessary that the sources of their income should also be thoroughly and separately examined by FBR/NAB. 278. To start work on anti-corruption from its base, a national moral education campaign is required to be launched at all levels of education, both formal and informal, as a core course, at basic, secondary and tertiary levels.

79

279. There is no accountability of secret funds at the level of the Federal Ministries. It is, therefore, appropriate that such funds are subject to secret audit because these funds are misused for purchase of gifts etc. and add to the illicit money in the country.

280. In addition to the TI “Corruption Perception Survey”, it is important to hold our own Public Opinion Survey by some independent agency / NGO to determine the temperature of corruption in the country.

281. Media, as we have in Pakistan, should be asked to be more active by narrating corruption stories in print and TV channels.

282. The problem of corruption in Pakistan cannot be solved by applying anti-corruption strategies of the rich countries. Their experience is valuable but only to limited extent. The issues of Pakistan are highly intricate and a reduction in corruption depends upon economic development and good governance and both should be pursued vigorously and simultaneously although good governance is also not possible without achieving a reasonable level of economic development and therefore, this goal shall have to be vigorously pursued for a long time simultaneously.

283. There are instance when the investigation agencies do not get adequate cooperation for their investigation in corruption cases from certain individuals or department or Ministries etc.

There should be suitable amendment in the NAB or FIA Act, which should empower it to file cases against these persons in the courts for lack of cooperation.

284. In a poor country with a large poor population living in poverty or below poverty line, the need for daily survival is tremendous and when the society is highly inequitable, the attraction for greed is unending. Greed is a desire to accumulate wealth, goods or items of any value with the intention to keep it for future and beyond your needs. People in Pakistan of other countries seek to acquire material wealth as much as possible, People in Pakistan are greedy because they are a part of a poor country and they would like to secure their future as much as possible. There is substantial gap between the rich and poor, they would like to copy the rich, they would like to live like the rich and follow the life style of the rich, which may go beyond the basic needs of the people. So greed is a part and parcel of our society at present from top to bottom and from rich to the poor. No segment of the society can be said to be clean. Although greed exits everywhere in all countries, it seems to have clinched top position in our value system. There are several reasons. One, the influence of Islam is not practically strong. People are more focused on the life at present rather than the life hereafter. With one chance on earth, let us accumulate as much as possible. In addition, life has become more uncertain and nobody knows what will happen tomorrow with regard to job or health or old age security and let us accumulate more and more and since future is so uncertain, wealth should be accumulated. In order to reduce greed, we have to become spiritual at teach “Hadith /Qur’anic” concept, and follow the example of simple living. We must teach people that greed to earn more and more should not reach the boundary of corruption or illegal earnings.

285. The government servants are required to file their annual income and wealth statement, which are neither scrutinized nor verified independently. These statements of the officials may be examined subject to their selection through computer balloting of at least 10% of the total no. of tax returns.

286. The overall atmosphere for corruption existing at each corruption infected office or place has to be assessed & dealt with separately.

287. The government, both at the federal and provincial levels, must ensure compliance of the Public Procurement Rules (PPRA). In case of alleged violation, the concerned affected parties must be encouraged to file cases with the NAB/FIA/ACE/PPRA. 288. The assets details of the last five years and issued by the Election Commission of Pakistan of MPA/MNAs/Senators need to be thoroughly checked by an independent agency without any government control and in case of proven wrong declaration, the legislature should be disqualified.

80

289. The government or some independent body should announce an annual award for private companies, which demonstrate anti-corruption leadership and make role models for others to follow.

290. A large no. of MNAs/MPAs do not have the National Tax No. or do not pay any income tax.

It is extremely essential to undertake a study as to how they have funded their election campaign, which cost millions of rupees. The FBR should initiate action against all these long pending high profile cases involving millions of Rupees for speedy justice.

291. An independent agency should be formed whose exclusive job should be to examine the assets statements of all the officials from BS-17 and above in all the government, semigovernment and public sector organizations as well as the elected parliamentarians, MNAs and MPAs. 292. Corrupt money goes into stock exchange as there is no capital gain tax and no question is asked about the details of investment made in the stock market. So it is appropriate that the necessary changes be made in the tax regime to ensure that the sources of income of investment made in the stock exchange are disclosed.

293. NAB must conduct accountability of its own officials along with the disclosure of information about their assets throughout their career at the time of joining their first job and the NAB. 294. It is important to improve the morality level of the lawyers’ community who defend tax dodgers and corrupt officials before the court. It should be incumbent upon the lawyers to satisfy themselves about the true position of the money involved is not black. Both the legal counsel and tax firm may be made accountable for such acts by their respective professional bodies.

295. The technical competency level of NAB or FIA or other relevant organizations will have to be improved substantially as it has to deal with a very large variety of cases from LNG imports to Modarba scam and OGRA scandal. The NAB or FIA may, therefore, hire services of the highly skilled and honest professionals to seek their advice on case to case basis. Award of contract by the Government bodies covers a large variety and it is impossible for these officials to fully comprehend the system and technicalities while examining different and complicated contracts. For example, examination of an LNG contract or 3G contract involves high quality experts in petroleum and computer fields.

296. Effective measures may be undertaken to drastically reduce money laundering as generally the money involved is illegitimate or from corrupt means and is meant to go to safe havens.

Cooperation of the foreign exchange dealers is required by asking for supporting documents from the sender. The government may formulate an effective anti-money laundering complaint program. Civil and criminal penalties can be imposed for violation of anti-money laundering laws and penalties can result in substantial fines. The dealer must keep all the record. There should be also customer identification program to detect suspicious activity.

297. In a country of about 200 million population with the Ministries/Departments / Corporations and their sub-offices running into thousands, the Public Sector Development Program and revenue expenditures as well as contracts for award of the exploration of oil and other resources etc. run into billions of rupees every year, it is extremely important to substantially improve the rate of conviction. The NAB/FIA/ACE with their limited capacity should add staff of other 100 or 200 persons every year in building up their prosecution cases against the corrupt.

298. If possible, the Government of Pakistan may enter into a treaty with the Swiss Government, which will, in future, not allow new account to open of a Pakistani national living in Pakistan.

299. A Corruption Control and Conviction Study Centre may be established in one university at least in Islamabad, Lahore, Karachi, Quetta and Peshawar to undertake research on corruption

81

issues, causes, challenges and cures keeping in view the experience of the least corrupt countries and other considerations to enable Pakistan to achieve breakthrough in this battle.

300. No latest progress/information is available regarding the Anti-corruption Establishments of the provinces on their website. Each Provincial Government must direct its Anti-Corruption Establishment to inform the public about its performance so that the necessary measures to improve its working could be taken through inputs from the public, revise its rules and procedures of their enquiry, register cases and arrest the accused etc. However, the website of Punjab ACE is the best amongst ACE’s websites of all provinces.

301. In OGRA corruption case, the alleged accused was reported to have 41 bank accounts in his and other names. The corrupt money is not generally kept in others or in your own account. It is a major reason for convicting the corrupt. It is, therefore, necessary the Banks must become careful in future in opening new accounts with heavy deposits/inflows. To stop multiple opening of bank accounts by one person in different names is certainly a major challenge in the country’s drive against corruption prevention strategy. The views/opinions of the commercial banks in the country may be sought for necessary changes in the rules, where required, to stop or drastically contain this practice for hiding illegal wealth.

302. It should be made mandatory for all professionals like lawyers, medical specialists, consultants, architects etc. to issue receipt of actual payment received from their clients in order to get their true income through some legal binding and ,of course, through moral education to cut down massive tax evasion.

303. A Corruption Complaint Box may be installed outside the office of the Head of every institution and their complaints and suggestions may be uploaded on its website as well as its branches or its sub offices etc. in the country at the earliest. The action taken and progress may be posted on the website of the institutions for the complainants and the public to know their progress on a regular or monthly basis.

304. Efficiency level of the country’s anti-corruption agencies should be judged from their websites and some system may be developed to rank their performance.

305. The Government should direct NAB, FIA and all other agencies to provide all the relevant information / data about the progress of cases filed and investigation in progress etc. on monthly basis on their websites.

306. It is proposed that keeping in view the gigantic volume of the problem, the Government may establish, a new Ministry at both the Federal and Provincial levels, called Ministry of AntiCorruption and it will be directly under the Prime Minister / Chief Minister of the respective province. The Ministry will act as a model for other Ministries / Departments /Corporations and formulate policies to oversee their implementation.

307. Conviction rate of FIA is 6% in case of money laundering during the last three years (Daily “The News” 30-12-2016). It is estimated that Rs.236 billion were illegally transferred to 37 countries during 2011-2016 and so the performance of the FIA is extremely poor. There is need for an independent study of the performance of FIA in this subject in order to improve its efficiency, which is extremely vital.

308. The size of the government, both Federal and Provincial, is quite huge. For instance, in the Punjab alone there are about 45 Provincial Departments, 22 attached Departments, 144 Autonomous bodies and 12 other special institutions with the total comes to 223 Pakistan has at present only 6 major anti-corruption agencies, 2 at federal level and 4 at the provincial level, i.e., one each in the four provinces. Either the no. of these agencies may be increased with the reallocation of the nature of the crime/amount involved or they be strengthened with the qualified, bold, competent and professional staff. We shall have to run our bus on the antcorruption motorway for the next 30 or 40 or more years with the bus packed with the required petrol, spare parts and drivers.

309. The top management of the Anti-Corruption bodies should regularly hold meetings with their staff members to discuss issues.

82

310. Pakistan should send at least 100 top and junior civil, military and other public sector officials every year for training in the International Anti-Corruption Academy, Austria.

311. All those who are involved in the corruption eradication exercise and others who are interested in this noble objective must frequently visit the website of Global Infrastructure Anti-Corruption Centre (GIACC) for understanding the corruption mechanism in the infrastructure, construction and engineering sectors.

312. The government should declare “War on Corruption” after detailed planning and consultation with all the stakeholders including the officials of most corrupt departments, like land revenue, police etc.

313. The year 2018 may be declared “War on Corruption Year”. If a country has to succeed in its anti–corruption crusade, it has to be an all-rounder and it should not be an excellent batsman, bowler or fielder but also wicket keeper. In other words, all efforts must be made to attain excellent scores in political, economic, social, legal and administrative sectors along with corruption prevention sector.

314. There are two Cs- Corruption and Cancer-which have strong similarities in destroying their surroundings. They both attack the whole system. So the corruption will have to be attacked from all sides, political, economic, social, legal, etc. A major or probably most important prerequisite of achieving success on this front is that Pakistan must have political leadership who is incorruptible, honest, visionary, fearless, has risk taking capacity is creative, knowledgeable, has communications skills, committed to its manifesto, inspiring, compassionate, confident, determined, persistent, committed, dedicated, humble, has exemplary character, remains calm and confident in a crisis situation, takes bold decisions, is not vindictive, role model for all others, with strong character, puts himself for open accountability, speaks truth and is generous, and remains calm and composed even in the period of crisis.

315. We are proposing below contents of course/syllabus on corruption for Pakistan’s civil servants, engineers, doctors and students. I) What is Corruption? II) When are the Opportunities for Corruption Occurred? III) How is corruption committed? IV) Who benefits from corruption? V) Adverse impacts of Corruption. VI) Anti-corruption Laws and Regulations. VII) Anti-corruption Agencies. VII) Role of NGOs and others in combating corruption.

316. There is not a single solution of the problem. It has to cover several areas: I. Sincere leadership. II. Trying and convicting big fish on priority bases. III. Huge awareness campaign by the government against corruption to convince people about the government seriousness.

IV. A responsible and honest media. V. Powerful independent bodies to oversee the anticorruption campaign, prevention and accountability process. VI. Strengthening independent corruption accountability institutions. VII. Improving and building an efficient legal system as well as police force.

317. To be effective, all round measures, including economic, political and institutional, may be undertaken with the underlying causes to be addressed and not the symptoms. The emphasis will have to be placed on prevention of corruption by tackling the causes of corruption which promote corruption through undertaking of economic, political and institutional reforms and at the same time, as the corruption in any case has to continue, their cases will have to be efficiently pursued for conviction of the accused.

318. According to the Global Integrity Report 2010, Pakistan’s overall rating was ‘Weak’ at 68th position out of 100 countries, “This indicator evaluates both anti-corruption legal framework and the practical implementation and enforcement of these frameworks and takes a close look at whether citizen can effectively access and use anti-corruption safeguards”. The index includes anti-corruption law, judicial independence and fairness and media’s ability to report etc. To achieve higher ranking in this index, it will be necessary to strengthen anti-corruption system, easy access to the public for government information, political financing,

83

transparency, conflicts of interest safeguards, checks and balances for the executive, legislature and judicial branches, budget process transparency, conflicts of interest safeguards for civil service, government procurement transparency and taxes and customs fairness, judicial independence etc. Pakistan will have to improve its ranking in this crucial Index.

319. Any anti-corruption strategy in a country like Pakistan is only in reality a prevention and conviction strategy and so is restricted whereas the country requires not only prevention and conviction strategy but also a broad-based national policy, which reduces the need and greed for bribe and corruption. So anyhow, a national anti-corruption strategy will have to be very board-based which will cover a wide range of national economic, governance and social justice issues.

320. In order to eliminate poor investigation and professional misconduct by the officials of the investigation agencies, they must be trained in Pakistan and in foreign countries along with high salary with their initial recruitments through open merit, competition and interviews with natural born instinct for investigation.

321. Some private entrepreneurs should sponsor a special 1-Hour daily TV channel transmission “Crime and Corruption” to highlight issues and stories to control this evil.

322. The institutions, offices & sub offices of the Federal & Provincial & Governments may segregate duties amongst its staff & prevent single person from undertaking entire transaction alone.

323. Job rotation should be done on frequent basis at corruption-infected posts to the extent possible without adversely affecting the efficiency of the organization.

324. Make bank accounts mandatory for all adult citizens in the country in the next five years.

325. The Punjab Procurement Authority should be made a vibrant organization through use of eprocurement techniques.

326. Each department and office should prepare its own Checklist for Corruption Prevention Control and Detection in its areas of operation and the head of the division/section should check its progress on a monthly basis as to how the efforts against corruption are moving.

327. Dirty money or corrupt funds go into the political party funds. Prevention of inflows is a highly difficult assignment. Continuous scrutiny and monitoring by the Pakistan Election Commission of the political parties’ funds before and after the election and every year could be some help in this respect.

328. Any government, even if sincere and honest, cannot fight corruption alone. It must be strongly supported by lawyers, civil society, private sector, etc. For example, the lawyers should refuse to defend a corrupt if they think or are sure that an act of corruption has been committed by an individual.

329. Both prevention of corruption and punishment of the corrupt should be strongly pursued with the policies and reforms in the corruption prone ministries/organizations as well as through legislation to make up for inadequacies and institutional weaknesses.

330. A Guidance Book should be prepared by major organizations carrying out government contracts as to how to take due care and reduce the risk of corruption.

331. The government may consider formulating a law, which should make it mandatory for the Pakistani businessmen to disclose their foreign banks accounts details while competing for contracts in Pakistan or during the filing of their Annual Income Tax Statement.

332. The government may prepare and publish an Anti-Corruption Guide which aims at strengthening the private companies’ awareness about the possibility / risks of corruption that await them and ways to meet the challenge while competing for the contracts / procurement.

333. If Pakistan has to really effectively combat corruption, there is no other way than investing in human resources, having low inflation rate and more equitable distribution of wealth as the major objectives. Generally speaking, the more a country is underdeveloped, the higher is its corruption level. You cannot start eliminating corruption straightway. Any serious anticorruption strategy requires multi-pronged, multi sectoral and multi-dimensioned approach. It

84

is not restricted to preventive measures or dealing with speedy justice system for corruption cases etc. It has to encompass all sectors of the country and enhance their capacity and efficiency in terms of the various indices like Globalization Index, Global Competitive, Economic Freedom, Gini Coefficient, Global Innovation Quotient, Education or Literacy, Governance, National Capability, and Human Development etc.

334. A “National Institute of Anti-Corruption” may be established on the lines of now defunct “National Institute of Public Administration” which will design courses and hold classes for the public servants and private sector employees such as Anti-Bribery, Doing Business without Bribery, Conflict of Interest, Money Laundering, Fraud Prevention, and Financial Crimes etc.

335. The NAB/FIA/ACE, should have copies of the Annual Public Sector Development and Annual Development Programs of the Federal Government and Provincial Governments. The anti-corruption agencies should regularly ask for the relevant information/update from these departments just in order to keep track of their contract awarding progress.

336. Let us explore ways and means to encourage and develop anti-corruption culture and competition amongst institutions /organizations to beat one another in respect of the setting up internal anti-corruption system such as annual awards of top ten bodies in both the Federal and Provisional Governments separately. The awards may be named such as Top Ten Least Corrupt Institutions of Pakistan or Punjab.

337. All news relating to corruption in any manner must be and should be shown as “Breaking News” by all the TV channels in Pakistan to highlight the strategic significance of the subject.

338. “Anti-Corruption Plan” may be designed and signed by all the business associations and the Chambers of Commerce etc. which commit the members to ensure that the corrupt practices, whatever may be their forms or methods, are not only punished by law but also condemned by them and considered as a dangerous social and economic evil. The signatories of the Charter will also commit that they their members will not take any step which will lead to corruption in any form.

339. The problem with the successful attack of corruption is that when an agency fights corruption, the corrupt fight back because they have greater resources and view the fight as of life and death for their survival as they are involved and benefitted from it. Generally, the fighting agency personnel are government officials with limited resources and no serious personal stakes in winning the battle against the corrupt. But these shortcomings need to be overcome through training and incentives as far as possible.

340. The Annual Confidential Reports of the government officials should include more assessment and information questions about the integrity level of the concerned officers.

341. All Federal and Provincial Governments as well as all bodies under their control must start an online portal showing their major kinds of expenditure, both development and nondevelopment, for information and comments with regard to their corruption free expenditures.

342. An online survey may be started titled “National Bribery and Extortion Survey” which will be filled up by the complainants about their corruption experience along with their recommendations as to how it could be or have been avoided.

343. The media in collaboration with anti-corruption agencies should train journalists to report on corruption and encourage honest investigative journalism with incentives and protection in case of facing court cases.

344. Modern information technology must be used by us to fight corruption. An Anti-corruption Internet Database (ACID) may be started which should show data, information, tools and resources and forge a coalition to fight the corruption that exists in Pakistan. The website will provide the means to track corruption in public contracts and other places to enable the people to know the corrupt practices.

345. International donors may establish an exclusive NGO to oversee the corruption issue in Pakistan.

85

346. The NAB has approved a plan to train its staff to fight white-collar crime in a number of different training institutes, which is a commendable step. It is extremely important that the courses of their training programs should be prepared by the professionals from Pakistan and corruption clean countries.

347. Since its inception, NAB has recovered Rs.266 billion as against expenditures of Rs.10 billion, which is only 3.7%. The NAB should set its own targets of annual recovery in view of its substantial experience in this game.

348. In order to control the corrupt and illegal practices of foreign mobile & telephone companies of their nonpayment of dues of the Pakistan Telecommunication Authority, it should receive some advance payment annually and suspend service in case of non-payment of dues exceeding a certain limit, say Rs.50 million, from time to time and warning be issued to the subscribers about suspension of service.

349. Special courts may be established to decide the cases of tax evasion and non-payment of dues of the FBR, PTA and other revenue collecting authorities of both the federal and provincial Governments for quick justice and the necessary change in laws be made not to allow stay orders etc. or jurisdiction of the anti-corruption courts should be extended to try/deal with such cases exclusively.

350. The Pakistan Government should negotiate a treaty with the Swiss Government as has been done by India and other countries of the world to retrieve the bank deposits of Pakistanis in the Swiss Banks.

351. The government may invite some international organizations like United Nations Office on Drugs and Crime to conduct an independent study titled “Assessment of Corruption in Pakistan” which will be very useful keeping in view specific conditions of the country.

352. It should be made mandatory that whenever a new Cabinet or a new Minister or Advisor is sworn in the Federal or Provincial Government, he must attend a two-day course which clearly teaches him as to how the Government is run and guides them not to issue any verbal or illegal orders to their Secretaries or subordinate staff against the rules & procedures. A detailed special brochure should be prepared for them on this subject including misuse of facilities.

353. A part of the NAB proceeds of the plea bargain should be provided to NAB to meet needs of its expanding plans.

354. Every individual needs to be educated and encouraged to speak out against corruption wherever, whatever and whenever he sees and reports to the head of the institution or the electronic or print media, as corruption eradication/reduction is everybody’s responsibility.

The people are a part of the solution to the corruption issue.

355. One can easily imagine the sad state of moral level in Pakistan from the incident when a NAB team was thrashed during the raid of the residence of the former President of Jammu & Kashmir on 27-01-2016 in connection with the multi billion-rupee rental power scam and as a result, a Deputy Director of NAB was wounded and hospitalized. This incident requires that full protection be provided to NAB officials while raiding the VVIPs’ residences/offices.

356. Whatever the allegations against NAB are true or false about its performance, it cannot be denied that the investment on NAB is highly beneficial. Its benefit- cost ratio is very high.

Investment on PIA, Pakistan Railways, Pakistan Steel Mills and such other organizations, are sheer waste of limited Government resources. Such unviable projects are a huge burden on the national exchequer. It is better to enhance the budget of NAB, FIA etc. to strengthen their financed, technical, professional and physical capability to match financial elite criminals and save and generate financial resources for the Government.

357. The NAB may sponsor writing and publication of the following books for students keeping in view Pakistan’s political, economic, social and religious environment for free distribution throughout the country’s offices, departments, institutions, universities and hospital etc.

1.Corruption Investigation Techniques.

2.Pakistan’s Democracy Assessment with Reference to Corruption.

86

3.Anti-Graft Guide Book.

4.Ways to fight Corruption.

5.How to Serve with Dignity and Honor (For Public Servants).

6.Anti-corruption Laws of Pakistan with Explanations.

7.Innovative Ways of Corruption in Pakistan.

358. To enhance the role of the Committee on Finance of the National Assembly, a comprehensive data table needs to be provided about its real performance of the last 10 years along with their recommendations/recoveries/ achievements.

359. The Police Thana culture reforms are of fundamental significance as a part of drive against corruption. In the police system, the Police Inspector or SHO, holding a key position has to be educated, skilled and honest but also should be well informed as to how to deal with variety of difficult crime cases. There needs to be special training courses for SHOs only.

360. Another idea about the depth & extent of corruption can be had from the disclosure of offshore companies of a person who happens to be a close relative of a former President of Pakistan. The FIA/NAB should undertake comprehensive investigations of all those mentioned in the Panama Leaks including all those closely associated with them in the past 10-20 years.

361. Till the role of illegal transfer of money through the Hundi System is curtailed or eliminated, it is important that the exchange rate difference for remittance through the banking or legal channels should remain insignificantly low with the intervention of the State Bank of Pakistan and other measures.

362. Corruption is like cancer & both starts with “C”. There is no immediate or quick solution of either. However, as cancer’s major remedy is chemotherapy which is highly painful or costly, so the cure of corruption would require equally tough cures for which both the doctor (Government) and the patient (People) should be prepared for this exercise through a campaign.

363. The Pakistan Government should push the OECD/UN to set up a global tax body, which binds all nations not to allow tax havens & heavens on their soils.

364. Our MNAs etc. recently tripled their own salaries & allowances. Raising your own salary / privileges does not reflect a fair approach. An independent body consisting of Economists, Chartered Accountants and Finance Ministry Officials etc. should determine the salary rise of the Public Representatives keeping in view the inflation rate and health of the economy.

365. In a major theft case in Karak District of KPK, the accused were granted bail by the court.

The FIA is feeling helpless in this case. (Daily “The News” 22-04-2016). There should be amendment in the law to ensure that such accused do not get bail and speedy justice is ensured.

366. The higher Education Commission should direct all the public sector universities to ask their M.Phil. /Ph.D. Student, to undertake corruption-related cases for their research thesis on priority basis.

367. Pakistan should take the lead to host an Anti-Corruption Summit of the Organization of Islamic Countries or Developing Countries or Asian Countries with a view to stepping up efforts to expose, punish & control corruption from these countries.

368. Some incentives should be considered for tax advisors who assist in money laundering. A meeting of Pakistan Tax Advisors Association should be called by FBR to discuss the issue of off shore investment for their views & recommendations.

369. The G20/OECD has developed a report ‘’ Base Erosion and Profit Shifting”. Pakistan should become a member of this project, which provides governments with solutions for modernizing international tax rules regarding tax avoidance strategies.

370. The FBR should develop exclusive policies for the Informal Sector which operates in cash transactions outside the tax system.

87

371. It appears that a Truth Commission may be formed exclusively for the purpose of assessing/examining the Assets and Liabilities of all the past & present parliamentarians, civil and other officers, judicial officers, both retired & serving, to get clean chit from the Commission so that in the next election only the established & proven incorruptible persons could contest elections.

372. All the Chambers of Commerce and Industry and manufacturers associations should develop communication networks with the Transparency International Pakistan for policy making to cut down corruption in the country.

373. The NAB/FIA/ACE, should develop close cooperation and coordination with such institutions and bodies as the United Nations Global Compact, World Economic Forum, Pakistan Against Corruption Institute (PACI). Anti-Corruption Commissions/Bodies, International Chambers of Commerce & Industry, International Federation of Consulting Engineers and Asian Development Bank etc.

374. Each TV Channel should coin its own Anti-Corruption or Corruption Hatred Message to be aired daily as a public service message.

375. An “Anti-Money Laundering Day� should be annually observed in the country. On that day, seminars and lectures should be held in all the head offices of the all the Chambers of Commerce and Industry, manufacturers and traders associations, political parties, and foreign currency dealers etc. along with special editions of the newspapers and programs on the TV channels.

376. Ads. must be regularly given in the newspapers against transfer of funds to offshore cos. or banks by the FBR/State Bank of Pakistan.

377. The Election Commission of Pakistan must share on its website the Assets and Liabilities Statement of all the MNAs/ MPAs/ Senators etc. of the last 20 years. The relevant law may be amended, if so required, in the interest of corruption eradication target.

378. In order to understand and recommend measures against international money laundering by Pakistanis, the State of Bank of Pakistan should sponsor a study on the subject.

379. The Punjab Government has introduced a Restaurant Invoice Monitoring System to promote tax culture, which is showing good results. The other Provincial Governments should also introduce the similar scheme in their provinces.

380. The political leadership, past and present, must first set examples of being corruption clean and tax obedient through their practical demonstration and actions for rest of the countrymen.

381. All over 400 Pakistanis whose names appear in the Panama Papers should be directed by NAB to provide year-wise Assets &Liabilities as well as Income & Expenditure Statements of the last 10 years, which will be subjected to close scrutiny.

382. Tax culture needs to be developed and promoted not only through fear of penalties but also through education, guidance, and pursuance. There should be some severe punishment for top tax evaders or dodgers, big non-tax filers, corrupt politicians, human smugglers, land grabbers, fake investment or land scams sponsors etc.

383. The art-cum-innovation of making money in Pakistan has probably no parallel in the world history. The Karachi based Axact Co. sold fake degrees & diplomas in thousands of fictitious universities under the guise of online education under cash for qualification programs with 73 bank accounts. His services should be acquired or hired as to how to combat corrupt and illegal practices in Pakistan.

384. There should be shadow cabinets in all the Provinces to make the Public Accounts Committee to play their effective role in curtailing corruption 385. Pakistan desperately requires domestic investments in different sectors. There should be some legislation to ban investment of the Pakistanis in the foreign countries or safe havens.

386. An exhaustive study is required of all offshore companies or banks in the world wherever Pakistani investors hide their legal or illegal income, which will also recommend measures how to stop, identify and discourage such investment.

88

387. Corruption is essentially three Ps: Public Private Partnership for corruption whereas the country needs Three Ps against Corruption by signing a new pact between the public & private sectors.

388. The NAB should issue year-wise summary of the amount received / committed to be received against actual amount looted and should ensure the recovery rate to reach 100%.

389. A large No. of top Pakistan’s politicians and businessmen have companies/assets in foreign countries. A high-powered Commission may investigate the subject and submit its report to the NAB. Let all these people clear the allegations against them and undergo necessary punishment as per law.

390. There has been no audit of the accounts of some Government Departments by the Auditor General Office. It is extremely important that an audit be ordered by their respective Ministries without any exception of the last 10 years.

391. The UNODC is doing a tremendous job on the anti-corruption front with a large no. of programs. There should be a Coordination Office within the NAB to get maximum benefits from UNDOC undertaking in the respect.

392. ZERO RUPEE NOTES should be printed and be paid by citizens to the corrupt governments’ functionaries who solicit bribe in return for doing their legitimate or illegitimate official works to show their contempt for this practice.

393. Citizens should be encouraged to resist the element for bribes through establishment of ‘’Anti-Bribery Hotlines’’ for follow-up prompt action particularly at the lower levels of the top corruption departments and offices.

394. Make bribe giving a criminal offence as well to act as a big deterrent to the people offering bribes.

395. The State Bank of Pakistan should sponsor and publish a study on corruption, malpractices and issues in the banking sector of Pakistan along with recommendations regarding how to deal with them for the staff of the banks and anti-corruption agencies.

396. A research study of socio-economic as well as other determinants of corruption crime may be undertaken of all prisoners in Pakistan charged or convicted of corruption and malpractices and accordingly make recommendation to confront the issue.

397. The UNODC has introduced a new anti-corruption course on its website for understanding corruption as well as measures to counter corruption. Copies of the contents of the course should be provided to all the officials of all the anti-corruptions institutions in Pakistan.

398. A National Tax Day should be observed in order to promote tax culture amongst the public.

399. In a case of a bank scandal, the officers of the National Bank of Pakistan in Bangladesh were found to be involved in the abuse of discretionary powers without the proper evaluation of properties, which caused huge losses to the Bank. Pakistan’s public sector banks in foreign countries need to be very closely monitored and any big transactions beyond a certain amount need to be referred to the head office for sanction.

400. Choosing salaried persons for detailed auditing of tax returns by FBR is a sheer waste of its extremely limited resources. The FBR should concentrate its resources on raising additional tax payers and curb tax dodging and money laundering etc. to improve its Benefit-Cost Ratio as well as the country’s Tax-GDP Ratio.

401. Special Instructions should be issued by FBR to the Customs Officials at the airports to have special and close watch over the model girls/women for checking of smuggling of foreign currency and other valuables to foreign countries.

402. Culture of stay order and bail to the accused corrupt persons should be seriously discouraged as far as possible as it encourages the corrupt to enjoy freedom during the proceedings period.

403. Pakistanis living in foreign countries should be encouraged and educated through a campaign in the electronic media to be patriotic of their birth country relating to critical issue of corruption.

89

404. There is a strong need to prepare very comprehensive report on wealth stolen in Pakistan and deposited/invested in foreign countries along with recommendations as how to tackle this grave issue. The TOR of this report will be prepared by the bankers of Pakistan and foreign countries where the loot has been hidden.

405. Pakistan Bar Council, Pakistan Medical & Dental Council, Association of Physicians & Surgeons, Pakistan Medicine Manufacturers Association etc. may be requested to send their recommendations as how to net non-filers and convince them to pay their dues.

406. All the anti-corruption agencies in the country should upload their own Facebook Pages to receive allegations of corruption as well as their bribe related experience for necessary action by the concerned agency.

407. All the professionals from the private sector who do not file Income Tax Returns should be banned from buying or selling land, property or car etc.

408. There are a number of definitions of corruption but there should be a comprehensive definition of a ‘’Corrupt Person’’ of the public sector and ‘’Fraud Person’’ belonging to the private sector, which will be labelled as member of a party to be called ‘’ Pakistan Corruption and Fraud Movement’’.

409. The integrity and morality level of elite class of the country can be judged from a news item in the Daily ‘’The News’’ 10-03-2016 regarding payment of tax by our leaders which will have to be raised astronomically.

410. An independent NGO‘’ Corruption Watchdog`” may be established with donations from local & foreign countries which provides the public with a platform of the fraud by the private persons/institutions/bodies/societies, which will be investigated by this NGO and placing its investigation to the anti-corruption agencies. The NGO will encourage reporting and act as facilitators for the anti-corruption institutions.

411. Some independent bodies and print and electronic media etc. should annually identify and award 50 Top Incorruptible Personalities of the public sector, which will create a very healthy competition. They should be awarded and become famous.

412. Death sentence for corruption exists in Iran. The proposal for imposing death sentence for major corruption cases such as more than Rs.50 Million needs to be examined by the religious leaders and anticorruption experts. The fear of death sentence for corruption crossing the above limit is surely going to act as a big deterrent.

413. The anti-corruption strategy should broadly follow the following methodology to improve performance of the officers: 1.Not dare to be corrupt.

2.Don’t want to be corrupt.

3.Not able to be corrupt and how to change get–rich–overnight mentality.

Each stage requires separate comprehensive system to be followed up.

414. Some system of state funding of elections may be examined, as the step will most likely reduce corruption significantly with respect to public representatives.

415. Nationalize all black and corruption income and the assets after conviction from the courts.

416. Frequently stop printing of Rs.5000 Note and change this currency Note design.

417. While undertaking corruption or fraud charges investigation against the top elite of the country, the NAB should ensure respect and follow scientific lines and highly experienced professionals should be engaged in such assignments and possibly their job could be given to other specialized sub-offices or institutions which may be called Crime and Fraud Office or Very Important Person/Fraud Unit (VIPFU) as in UK. 418. Only persons of impeachable integrity of NAB should be placed in plea bargaining cases as some commission is/or should to be allowed to them to avoid unnecessary temptations from the corrupt.

90

419. As there are science teachers or math. Teachers in high schools, so we should induct Anticorruption Morality and Integrity Teachers in all, high, public and private, schools of the country with training in their new proposed Institute of Anti-Corruption.

420. There is need to write and publish a standard textbook on the subject of corruption, morality, integrity and character building for all high class students of the country keeping on view the Islamic teachings and Pakistani’s culture, economic conditions and income disparities in the country .

421. The rulers, politicians, bureaucrats, industrialists and top hierarchy of the country need to be educated and convinced to follow the example of self-accountability as set by Islam.

422. All the politicians, who took part in elections from any party must declare their assets every year. In case of non-declaration, they should be disqualified from contesting elections in future through some new legislation.

423. All the properties, assets, land’, factories etc. should be confiscated in the name of the state after the corruption charges are proved in the courts. Forensic labs should be set up in all offices of the anti-corruption agencies in the country.

424. A former retired officer of Pakistan Army who has been a top person in a government organization realizing his guilt agreed to deposit illegal money of Rs.200 million. Such examples need to be highlighted in the electronic media in order to teach people to be honest and fair.

425. They should be a course on reputation building and maintenance in the education institutions as well as in other professional academies, which teach that honest reputation is too important a matter and must be safeguarded, and even at the cost of difficulties.

426. There have been allegations of NAB exceeding its mandate although no specific incident has been mentioned. However, the NAB management must ensure that it does not exceed its mandate or cross its limit while performing its functions without any bias or against any particular province. A provincial across- the -board accountability should be pursued by NAB. 427. The political parties call for accountability of the corrupt but when their own leadership come under investigation, they should openly accept and they should not call it victimization.

NAB and other agencies must remain fair and rebut the allegations through their impartial demonstration of their work.

428. Most of us wish accountability to be fair but when they come under fire of NAB or other agencies, they don’t accept. The print and electronic media is required to dispel the impression through facts and figures.

429. When the NAB should institute inquiry against any person on corruption charges it should be necessary that the manner or system of inquiry does not turn into witch hunt of the alleged accused through decent system of investigation.

430. If there is anything wrong with the working of NAB, independent bodies should be assigned the job to recommend measures for its improvement and not by threatening the institution.

431. For the corruption curtailment in FBR, the country desperately requires a tax culture. We have a tax culture in Pakistan with a small population paying direct tax. To promote tax culture free from FBR, the rates have to be optimum to be determined through a survey and prompt payment of the refund etc.

432. If some foreign countries do not sign agreement with Pakistan to return our money, Pakistan should allow their nationals to open their accounts in Pakistan or in other words, making Pakistan a tax haven for these countries for hiding their black money.

433. It will be highly useful that the NAB/FIA sponsor writing and publications of a dictionary titled “Corruptionary: A Dictionary of Pakistan’s Corruption Words” to enrich literature and enhance the understanding of malpractices of both public and private sectors.

434. Source of the Pak beneficiary must be questioned or investigated in case of large funds transfer from abroad through any system, such as over Rs. 10 million, in a single month.

91

435. The former Chairman of Pakistan Anti-corruption body, NAB, Admiral (R) Fasih Bokhari, is facing probe for corruption & misuse of authority under orders of the Supreme Court of Pakistan. Such a case must be very few in the world’s history that a top person of an anticorruption institution faces charges of corruption. A research study may be undertaken and published to identify a list of the world’s top anti-corruption bodies with top corrupt personalities for further analysis.

436. It is appropriate that some way should be found that those who are doing accountability of others should also remain under the process of accountability themselves. One way is that a separate body should be formed with authority to act as a watchdog for accountability of staff of NAB, FIA, ACEs and PMIC etc.

437. Fight against corruption is not an ordinary battle. It is certainly no less than the war against terrorism being fought in Pakistan. Whereas terrorists are hiding in the border areas of Pakistan – Afghanistan as well as in Karachi and other areas of Pakistan besides in Afghanistan, corrupt public sector financial terrorists exist in every office and ministry, department, public sector enterprise etc. Private sector financial terrorists exist in housing societies and other bodies etc. who are more widespread and more intelligent than the criminal terrorists in the country. Let us fight financial terrorists by seeking coordination, cooperation and assistance, financial and physical, from the microscopic noncorrupt and clean people of the country.

438. The corruption allegations against a former PPP Minister are stunning, if they are true.

According to a report in the Daily “The News” (24-9-2015), he caused total loss of Rs. 462 billion. If half is true, even then the illegal money reaches billions of rupees. The NAB must ensure and put all its resources in action to ensure conviction of all such accused along with recovery of the plundered wealth for providing crucially needed money for Pakistan’s high fiscal deficit economy as earliest as possible through fair judicial trial.

439. All the major political parties leaders should sit together to prepare and sign a "Charter for Anti-corruption" (on the lines of Charter of Democracy between PPP & PML (N)) to chart out a combined and agreed campaign as well as action plan against this evil. Work on the charter will not invite criticism of partnership and non-neutrality, as it will be designed to ensure across-the-board accountability by the anti-corruption agencies. It will show sincerity of the political leadership in tackling this menace.

440. Another step which can contribute to slowing down corruption is to place a “Complaint Box” in each department in each ministry which collects complaints, does not disclose identity of the people, generates report after its own investigation and sends the complaint to anticorruption bureau or FIA or NAB, if true.

441. As the country has Export Processing Zones, it should be possible to establish “Corruption Free Zones” in particular departments or organizations or corporations or institutions to be followed with more such Zones, which will act as the symbols for other organizations to follow.

442. The government should formulate a long-term & short term strategy of corruption prevention & elimination, which will also include the economic planning strategy of poverty reduction, equitable distribution of income, higher allocation for social sectors like education and health, speedy justice for corruption cases, reorganization of the anti-corruption bodies or establishment of new ones etc.

443. There is need to develop a few NGOs exclusively devoted to act as anti-corruption watchdogs to invite people to file complaints for investigation & place the same for public or the courts. These NGOs will have to be manned by highly qualified and honest professional manpower.

444. The media and the civil society should identify & select “100 Incorruptible Role Models of Pakistan” every year, retired or serving, with their assets.

92

445. Workers, staff and officers associations in different department, and bodies should be vigorously involved in corruption eradication drive through inviting their recommendations and representing them on the board investigating corruption complaints, etc.

446. The Indonesian style “Honesty Stores” without salesman may be set up in selected high schools or colleges at their premises where the students buy stationery and books and drop the cost of the product into a cash box to inculcate honesty in them. The Pakistani philanthropists may be requested to finance such stores particularly in the government schools.

447. All the political parties may be asked to send their annual recommendations to NAB / FIA / ACEs / PMIC / CMIT / National Assembly / Senate etc. regarding corruption issue.

448. All the Bar Associations of the country may be asked by NAB to provide their recommendations on this subject with particular emphasis on quick justice system in these cases.

449. A highly attractive anti-corruption slogan such as “if there is no corruption, there will be no poverty” may be widely publicized by a special body.

450. All top officials concerned with the procurement and purchase in the official organizations should attend a regular course of PPRA rules as well as on morality, honesty, integrity, uprightness and sincerity to be organized by the Public Procurement Regularity Authority.

451. Two former Army Generals have been punished under the Pakistan Army Act for their involvement in embezzlement in the National Logistic Cell which caused huge financial losses to the company (Daily “The News” 6-8-2015). It will be highly appropriate that such an exercise is pursued vigorously to contain corruption in the armed forces.

452. These is a strong need to wage a “War on Corruption” of a similar level of intensity as the currently run “War on Terror” in Pakistan.

453. These should be some way to oversee and ensure implementation of NAB’s 15-Point recommendations for better governance in Khyber Pakhtunkhwa to combat corruption. Other provincial governments should seriously adopt and implement the similar program. Let us learn from one anothe 454. The Punjab Government has introduced an SMS service asking for information regarding payment of bribe or money to Lahore Department Authority, which is a remarkable anticorruption idea. (Daily “The News” 01-08-2013). This service needs to be introduced by all institutions of all Federal and Provincial Governments.

455. The NAB plea bargain in the Bank of Punjab fraud case was cancelled by the Lahore High Court (Daily “The News” 04-08-2013), considering it as flawed. The NAB will have to improve its professional efficiency and integrity in the interest of the country. In this scam, a property of Rs. 40 million was shown for Rs. 20 billion, 50 times higher.

456. Corruption in the Customs Department can be reduced by using all inflows & outflows recording with strong and strict cross checking. This will help in creating an efficient & result oriented tax culture.

457. Adequate funds need to be placed at the disposal of all the Anti-Corruption agencies operating in whole of Pakistan, Federal or Provincial, directly or indirectly, in any way or manner to meet their needs. Failure to provide them sufficient funds is a gross negligence and non-seriousness on the part of the government. As the government provides the required funds to defense agencies against external and internal enemies, so anti-corruption agencies should be able to get them because of their highly strategic objective.

458. Even the terrorists are issued fake identity cards by NADRA on payment of Rs. 10,000 – 20,000 (Daily “The News” 22-08-2015). A terrorist carrying $5 million as head money got fake CNIC. The Ministry of Interior will have to take serious steps to stop such alarming corrupt practices.

459. There is a strong need to strongly activate Chief Minister’s Inspection Team at the provincial levels to play its part to curb corruption in the provinces.

93

460. None of the 15 least corruption countries is involved in domestic terrorism or living in a state of confrontation with its neighbors. In such peaceful conditions, the fight against corruption can be better fought whereas Pakistan is in a state of war with India and Afghanistan all the time along with domestic terrorists. In such terrible state, the battle on another front like corruption cannot be easily won but we have no choice but to fight it till its end or sufficient control and so the winning the war against terrorism should also be made an integral part of our war against corruption.

461. There is a shady case deal of 307 acres of prime land in Islamabad valued at CDA price of over Rs. 2 billion for Rs. 62 million by the former President Zardari with his son, Bilawal Zardari, and the reference in the NAB remains inconclusive. The NAB must activate such all high profile cases.

462. According to a report published in the daily “Dunya” quoting sensitive agencies, 71% officials don’t prefer merit, 61% indulge in corruption in different ways, 29% take money directly and 42% commit this act indirectly by getting their personal work done or accepting gifts. The task of corruption control becomes a big objective and the quality of efforts will have to be significantly raised by all political leadership and anti-corruption agencies etc.

463. According to the Global Financial Integrity Report titled, “Illicit Financial Flows from Developing Countries 2004-13”, Pakistan’s ranking is 109th out of 149 developing countries.

There is a strong need to start implementing a large no. of highly important policy recommendations made in the Report.

464. According to a report in the Daily “Pakistan Today” 12-06-2015, a list of 34 officers of the Sindh Education Department was forwarded to the NAB, which says that more than 10,000 fake recruitments were made by the previous Education Minister. How to stop such fake recruitments in future is a million dollar objective. Some TV channel investigation reporter should regularly visit Government Departments / Institutions to get more information on this subject. An exhaustive study is necessarily required to suggest measures for such horrible acts.

465. The Evacuee Trust Property Board is estimated to have suffered a loss of Rs. 400 million under the former Chairmanship of Asif Hashmi by leasing out 19000 acres of agriculture land in Nankana Sahib during the period of 2009-2015 at a rate much lower than the prevailing rate. Such high value sales should be subjected to pre audit by an external auditor/ consultant through necessary amendments in rules for commercial transactions etc.

466. According to a global anti-corruption body, Washington-based Global Financial Integrity Report on estimated illicit capital outflows, surprisingly Pakistan is not amongst the top 15 countries for the obvious reason that Pakistan is as whole not a rich country. Only 2.5$ billion were smuggled out from 2003 to 2010 as against China $ 2.74 trillion, Mexico $476 billion, India $123 billion & UAE 107 billion (Daily “Pakistan Today” 12-10-2012). A comprehensive expert analysis is required as how Pakistan should be able to stop these outflows. A revised ranking is also needed based on outflows as percentage of GDP of all the countries included in this report.

467. Irrespective of the year or the form of the government or party in power or role of anticorruption agencies, Pakistan’s corruption matrix hovers around 2.5 / 10 for years since the start of TIP Index in 1995. So the government / NAB should specify a target of rising this no. every year in line with TIP formula.

468. Corruption is so deeply integrated in the system that it can be more appropriately called a part of SOPs or Standard Operating Procedures in Pakistan. So these SOPs need to be revised so that Pakistan’s corruption ranking can be improved.

469. The lawmakers during the last PPP regime were allowed discretionary funds of over Rs. 2.4 billion between 2008 – 2013, which remain largely unaccounted or untraceable (Daily “The Express Tribune” 02-04 - 2015). The matter needs to be seriously investigated by NAB. There should be complete ban on such funds transfer.

94

470. This country has probably a unique distinction where fake companies are formed with fake addresses. Bogus refund of billions of rupees to these companies on fake flying invoices or adjustment of bogus inputs by FBR were allowed (Daily “The News” 09-08-2014). The refund system of FBR needs to be strengthened through an independent external firm or company.

471. Moral standard of the country’s top educated class in the country can be judged from the fact that out of some 186,000 registered doctors with PMDC, only 11000 doctors’ filed income tax returns during the year 2014 or only 6%. A direction from the PMDC Register as to the doctors is required to file income tax returns otherwise their medical licenses could be suspended. There should be a chapter on tax morality in the final MBBS course.

472. FIA arrested a religious channel TV host and a leader of a Pakistan’s religious party, Shabbir Abu Talib for illegally transferring Rs. 800 million or more to Dubai & other countries (Daily “The News” 19-08-2015). The progress of this case needs to be regularly provided by FIA. The fate of this car is not known.

473. The NAB had prepared a comprehensive package for implementation to overhaul the country’s tax machinery (Daily “The News” 21-04-2015). There is strong need for speedy implementation of its recommendations without delay as far as possible and the update should be uploaded on its website.

474. It should be made mandatory as soon as possible, say within the next 2 years, for all government institutions in Pakistan to use electronic filing information & working system which will enhance accountability & transparency.

475. It is a matter worth consideration whether an alleged corrupt accused of billions of Rupees deserves to be granted bail. Zafar Mahmood Gondal, the former Chairman, Employees Old Age Benefit Institution, was accused of spending Rs. 44 billion for purchases of 18 properties in Lahore, Islamabad & Karachi at exorbitant prices but he was granted bail. The law on the subject needs to be revised & tightened for containing corruption.

476. The NAB list of corruption cases hardly includes the corruption of the Musharraf era although the country remained amongst the top corrupt countries in the world during his period. The NAB must clarify its position on this matter of that period as per TIP reports.

477. The civil society or NGOs should monthly sponsor a 4-5 kms protest walk or race of the young or old people or both in all major cities of the country to attract attention toward the corruption problem in the country. The NAB recently introduced a large number of measures to enhance its working efficacy. Hopefully, these steps should contribute to boost the performance of NAB, which are generally considered to be insufficient and un-satisfactory for variety of reasons. A mechanism must exist within NAB to ensure proper implementation of the measures being introduced.

478. Out of 150 mega corruption cases of NAB, the share of the politicians is only 20 or 13% while others are civil servants, businessmen, owners of the housing schemes, mills owners, loan defaulters, private builders etc. So the share of the politicians appears to be insignificant.

The NAB must deeply re-examine its system in this respect.

479. The role of media in curbing corruption is of vital importance and in the past, it has no doubt done a lot. It is suggested that a special appointment be made by each TV channel whose only assignment is to identify and deal with corruption crimes in the country. These special assignments will certainly help in controlling corruption in the country.

480. The Public Interest Disclosure Bill, 2017, introduced in the National Assembly which aims at providing mechanism for public interest disclosures needs to be improved by reducing exemptions from public disclosures and as well as following the principles mentioned in the OECD book titled, “Compendium of Best Practices & Guiding Principles for Whistleblowers Protection” and allow information freely to all parties related to money laundering, frauds, kickbacks, embezzlements, commissions, corruption and different kinds of corrupt practices.

95

481. As a part of the objective to control or contain corruption, business friendly opportunities, schemes or projects should be introduced in the country, so that the people will not fall prey to fraudsters, like Double Shah. In this respect, the role of the government is important for awareness and education. It should also promote the introduction of safe investment and business opportunities for common man. By reducing profit rates of National Savings, the Government is only seriously discouraging safe investment and forcing people to go for highly risky with high return private dodgers.

482. A report by the International Consortium of Investigative Journalists of 2013 revealed the names of all those Pakistanis who have offshore companies in tax havens like Cayman Island and most of them were politicians & businessmen. The list needs to be published in the press.

The media should interview them and find out reasons for their investment there so that the appropriate policies could be framed accordingly.

483. A new system needs to be devised that promotes honesty is the best policy by providing extra perks or funds to nourish honesty in the public sector employees. Employees within NAB, FIA, or ACEs should also be encouraged to report their knowledge of unethical or illegal practices within their own institutions or by their own bosses without fear of any kind.

Some award should be given to such whistle blowers in case of any illegal practice or information.

484. To reduce or prevent corruption, the Bank management may be warned if it is determined after an impartial enquiry by the State Bank of Pakistan, that the depositor has several bank accounts in different names for no solid reasons and the depositor has deliberately misinformed or provided fake or forged documents and know your customer policy of the bank has been deliberately subverted which could not be properly judged by the bank.

485. According to the Financial Action Task Force (FATF) Statement (June 21, 2013) “Pakistan has taken significant steps toward improving its AML / CFT regime including by amending its Anti-Terrorism Act. However, despite Pakistan’s high level political commitment to work with the FATF & APG and deal with its strategic AML / CFT deficiencies, Pakistan has not yet made sufficient progress in fully implementing its action plan and certain key CFT deficiencies remain”. Pakistan needs to take additional steps to meet the international standards and deficiencies.

486. Money laundering is a part of illegally acquired wealth including corruption, under / over invoicing of trade, ransom, smuggling, bhutta, terrorist related black money / income, real estate untaxed income etc. and kept abroad for security and safety from any interrogation by the government. It has strategic significance and Pakistan Government will have to take extraordinary measures to control or reduce it.

487. Rapid growth in financial information technology & communication allows dirty money to move from one place to another very quickly, and easily and so the task of detection and combating it is not only very urgent but also very difficult. In view of its serious nature, most countries have established Financial Intelligence Unit. India has one called Financial Intelligence Unit, which was established in 2004 for receiving, processing and disseminating information relating to suspect financial transactions besides coordination with international agencies in pursuing efforts against global laundering. Surprisingly, no such agency has been established in Pakistan. The Government, if it serious in its war against corruption, should immediately set up a Financial Intelligence Unit of Pakistan.

488. If it is possible, it is extremely worth sponsoring writing of research books on corruption modus operandi and devices employed by wizards like Mushtaq Ahmad Raisani etc. in order to provide useful inputs for anti-corruption agencies’ officials’ knowledge and efforts.

489. The media should identify the corrupt, and name & shame them openly in both the print and electronic media. We should name and openly criticize & ostracize all those bank branch managements who facilitate them in one way or the other.

96

490. Banks of foreign countries should publish details of accounts of Pakistani nationals & do away with the secrecy on ethical and moral grounds as well keeping in view the status of Pakistan’s economy.

491. Know your customer rule should be extended to the beneficiaries or the associates of the account holders of the banks.

492. On the lines of the “India against Corruption”, a similar movement called “Pakistan against Corruption” may be initiated with the objective to ensure corruption clean Pakistan through direct greater participation of Pakistanis. It will be managed by a core committee.

493. The course work of the proposed Anti-corruption Institute should include a survey of best policies adopted by foreign government, NGOs and other stakeholders to eradicate corruption and promote transparency, review domestic & international anti-corruption policies and efforts and develop new anti-corruption strategies and directions etc.

494. The cycle of corruption consists of:1.Why and how does this crime occur?

2.How can it be prevented? What ways can be adopted for its prevention?

3.Once it occurs, how should the corrupt be caught and investigated?

4.How should we ensure that he is convicted?

A comprehensive plan is required with respect to each of the above questions. The above subject covers virtually the whole system of the state including people from the top political leadership to the common man, education, procedures, morality, religion, economics governance, integrity, rules, law, judicial system, poverty, inflation and inequalities etc. Each part of the cycle will have to be separately tackled.

495. The subject of corruption (c) revolves around 3Cs:1.Control 2.Catch, and 3.Conviction Each “C” requires a set of policies and efforts for effectively dealing with the problem.

However, need and greed are primary factors at the control stage but they continue to exist and remain in operation at the catch & conviction stage. Greater the effectiveness of policies at the control and catch stage investigations and resultantly on conviction, the lesser the level of corruption.

496. According to “Investment Climate Statement 2013”, low ranking police is particularly corrupt. Registering complaint is far from being transparent or effective, for police receive informal payment when conducting their work. The police routinely engage in crime, extort money from prisoners and their families or accept bribe to file or withdraw charges. The police corruption is so huge that it would be appropriate to establish a Police Reforms Commission to recommend measures in all respects.

497. According to the World Justice Project, “Rule of Law Index 2015”, Pakistan has been ranked at 98th position out of 102 countries. This project says: “Effective rule of law reduces corruption, combats poverty and disease and protects people from injustice, large & small”.

The top 10 countries are almost the same, which have the lowest corruption level: Denmark, Norway, Sweden, Finland, Netherlands, New Zealand, Australia, Germany & Singapore.

Effective measures are, therefore, required for each of the components of the rule of a law index to improve Pakistan’s extremely high ranking in corruption.

498. There is little doubt that the anti-corruption war is not being fought in a completely fair and impartial manner when you see that the corruption cases such as against the top elite class are kept pending or closed for years without any solid reason except political expediency. There should be some directions from the Supreme Court to force the anti-corruption agencies to complete investigations without delay in all high profile cases.

499. On April 18, 2015, a news item on a Pakistan TV channel said that a launch boat had been captured with 50 million dollars and 8 persons on board. There is not a single confirmation or

97

clarification or rebuttal or further development on any TV channel or newspaper. Complete secrecy on this major news item is highly mysterious. There is no denial or confirmation from any source. Such cases are worth notice by the Supreme Court through suo moto.

500. In addition to the existing civil awards given by the Government, a new exclusive civil awards should be annually given to 5 persons with great contribution towards corruption control in Pakistan.

501. It is suggested that all the anti-corruption bodies NAB, FIA, ACEs, PMIC etc. should publish a monthly “Newsletter” separately providing information about their monthly progress, new complaints received with summary, seeking public & specialists assistance in finalizing their own reports for onward submission to the courts etc.

502. Public disclosures of selected cases of corruption should be made and published in the press on daily basis.

503. It is suggested that all public procurement offices should have CCTV cameras to have watch on the employees, their behavior, movement & gestures etc.

504. Some special award may be given to all those concerned for completion of the Government funded development projects within time period and budget.

505. Blacklisting businessmen who are found to be inducing government officials to accept bribe should be barred from competing for government-funded projects by evolving some system.

506. There is a need to establish Complaint Department in all the Federal & Provincial Governments and bodies under their control. It will be an independent department that is supposed to collect all corruption related complaints. It does not control any department nor is it controlled by any other department. It will collect complaints and forward them to the concerned agency for reply / comments. It may or may not disclose the identity of those who file the complaints while hiding their names. No. of complaints are expected to grow significantly.

507. The NAB recently provided two lists of mega corruption cases to the Supreme Court, one of 150 cases and the other of 29 cases. It is highly appropriate that details of mega corruption cases should be available on its website and supporting materials / evidence may be invited from the public. It is also possible that some people may come up to provide additional information / inputs to NAB for completion of its investigation and strengthening.

508. The NAB is planning to set up its own anti-corruption training academy on the pattern of the Malaysian Anti-corruption Academy, Work on this project needs to be speeded up so that the academy may start operation by the end of 2017.

509. Exit Control List may be revised to include names of all the mega corruption scandals accused immediately after the NAB or FIA or ACE informs the Interior Ministry.

510. The assistance of the World Bank may be sought through its Stolen Asset Recovery Initiative to recover laundered proceeds held in the foreign countries by Pakistani nationals.

511. All newspapers & magazines in Pakistan should publish a special edition on “Corruption” every month to highlight the problem, emergence of new cases, judgments and suggest ways and means to tackle the issue.

512. A group of artists may be assigned the task of painting on the walls of houses of government officials, ministers, senators, MNAs, MPAs etc. especially designed for anti-corruption drive.

Since corruption is visible in every small office you visit, we have to attract the people toward this matter. So we should think of novel ways to fight corruption and this proposal is through the application of fine arts. Street art is a rare sight in Pakistan and this method will certainly help in attracting all those who are involved in this evil.

513. Names of all those people with heavy black money amount stashed in foreign banks or tax havens should be forwarded to the Supreme Court for necessary proceedings besides publishing their names in the press. Such a strong action well seriously discourages the corrupt and those with black money to transfer funds to foreign countries.

98

514. Massive evasion in customs, sales tax & income tax etc. can be checked through an integrated tax intelligence system, which will record all inflows & outflows.

515. A media awareness campaign against corruption should be launched by inviting production of a short film of a 5 – 10 minutes showing the causes and consequences of corruption in the society and the best film maker be awarded every year.

516. To tackle the pending cases of FIA, the Prime Minister recently approved the establishment of two special courts (criminal) at Lahore, whereas only one functional court has 2000 pending cases while FIA has over 10,000 pending cases. It would be appropriate that two additional courts be also approved for speedy disposal of cases.

517. There is strong need for close collaboration of NAB with the Security & Exchange Commission of Pakistan. The role of SECP has not been fully explored & exploited. It is therefore, necessary that a permanent representative of NAB be placed in the SECP Head office for closer cooperation between the two institutions to deal with the financial crime.

518. The NAB has advised the Establishment Division to ensure implementation of the ESTA CODE by all the Government Departments. ESTA CODE contains a chapter, which aims at combating corruption, and reducing the government organizations vulnerability to corruption and this will reduce the need of external anti-corruption agencies. In view of this consideration, each government organization should provide its performance to NAB. 519. Many of the suggestions in this chapter will require substantial funds for implementation, publicity, campaigns, holding seminars, installation of boards etc. NGOs may, therefore, seek international funding while departments / agencies / institutions may set apart a special fund in their annual budget.

520. Public and private financial support is expected to be available for this noble cause through appeal in the print & electronic media. However, every department / organization will have to find ways for mobilization of funds for this noble cause.

521. Promotion in the government departments, agencies, autonomous bodies etc. should be linked with the assets declaration & then later on verification of their accuracy, such as whether the assets reflect true details and match the income earned or expenses incurred.

522. Hatred must be installed in the people’s hearts & minds against corrupt persons & corrupt practices through massive education and campaigns all over the country.

523. The political parties and NGOs should hold sit-ins against corruption on a regular basis in all major cities and opposite major offices of the top corruption – packed departments or organizations of the country without creating traffic jams.

524. An Anti-corruption Week should be observed annually all over the country by all the organizations, universities, colleges and institutions etc. There is a need to undertake struggle against corruption as “Jehad” (Holy War), which will certainly considerably help in curtailing corruption. Its detailed programs should be worked out separately.

525. The NAB should identify and rank top 100 Corruption Departments/ Organizations in Pakistan and make their names public as a part of its anti-corruption drive and the list be annually revised. Or TIP may be requested to undertake this research.

526. We have a memorable statement from the former Prime Minister, Mian Nawaz Sharif, on the subject of corruption irrespective of Panama Leaks issue. According to the daily “The News” dated 12-10-2014, he said that “his government considers corruption of even one penny haram (illegal) and thanks Almighty ALLAH that had saved them from indulging in this evil”. Such a statement from any Prime Minister should be of a great help in curtailing corruption & be widely publicized in the print and electronic media and the public has a right to challenge this statement.

527. Corruption can’t be curtailed until the society stops respecting the corrupt and the embezzlers of public funds. How this can be done is a very difficult assignment. However, a public service message should be widely published in the print & electronic media on a massive scale for promotion of this practice.

99

528. Pakistan Government should seek record of all those who brought property or made investment in recent years abroad and they have not disclosed through open ads. Enquiry may be initiated in all these cases that appear to be suspect and illegal wealth transfer is involved.

529. Although it is not proper to suggest a super body over NAB to oversee its operations, yet it will not be inappropriate to recommend that a fully independent body consisting of private and Government sector personnel be formed to recommend steps for NAB for its more efficient and impartial operation.

530. It should be made mandatory that all the recommendations of the Public Accounts Committee of the National Assembly in different cases should straightway go to NAB / FIA / ACE for further investigation and necessary actions.

531. A new TV channel with the name “Anti-corruption TV” should be set up as a joint collaboration of government, Chambers of Commerce & industry and other business associations to narrate the evils of corruption, true corruption stories, poems, songs etc. The famous businessmen, politicians and incorruptible personalities etc. should regularly appear in the channel.

532. The NAB apparently appears to be either helpless or incompetent to recover its balance amount under the voluntary return scheme as well as plea bargain scheme. The NAB is required to take strong and urgent measures to make these recoveries at the earliest by sending them to jail after necessary amendments in the law.

533. All the anti-corruption agencies / bodies / committees etc. should make regular and frequent use of the mobile SMS to disseminate and spread the corruption hatred message throughout the year.

534. In addition to the TI Corruption Perception Survey, it is important to hold our own public opinion survey to be conducted by an independent research council to determine the temperature of the corruption meter in the country.

535. Media, as we have in Pakistan, should be asked to become more active on corruption horror stories. Citizens’ participation in the anti-corruption drive should be encouraged by the government and its modalities be determined.

536. The problem of corruption in Pakistan can’t be solved by applying anti-corruption strategies of the Western countries. Their experience is valuable but only to a limited extent. The issues of Pakistan are highly complex and reduction in corruption depends upon economic development and good governance and both should be pursued vigorously and simultaneously although good governance is also not possible without achieving reasonable level of economic progress.

537. In a poor country with a large poor population living in poverty or below poverty line, the need for daily survival is tremendous and when the society is highly inequitable, the attraction for greed is tremendous. So the poverty and inequality reduction are of paramount significance for Pakistan to move towards achieving its goal of corruption clean Pakistan.

538. Greed is a desire to amass wealth, goods or items of any value with the intention to keep them for self or families beyond your or for your generations needs and so you seek to acquire excessive material wealth. In Pakistan, people are greedy because they are poor and in a poor country, they would like to secure their present as well as future. Besides, there is a huge gap between the rich & the poor and they would imitate the rich and would like to live like rich and follow the life-style of the rich, which goes beyond the basic needs of the people. So greed has become a part & parcel of our society from top to bottom and from rich to poor. No segment of the society can be said to be clean. Although greed has always been everywhere in all countries, it seems to have clinched a top position in our value system. To reduce greediness in the society, special teaching classes will have to be designed or organized for students, bureaucrats, businessmen, political leaders etc. on the subject of GREED. 539. There are several reasons that the influence of Islam is not practically strong in Pakistan.

People are more focused on the life at present rather than hereafter. With one chance on earth,

100

let us accumulate as much as we can. In addition, life has become uncertain and nobody knows what will happen tomorrow with regard to job or health or old age security. So enough is not enough and let us accumulate more and more. In this kind of scenario, there should be frequent corruption specific lectures / programs on the TV channels and other places like educational institutions, mosques etc.

540. In order to reduce greed, we have to become spiritual and teach the Islamic concept to our new generation and follow the maxim of simple living, honest earning & clean thinking.

Greed to earn more & more is fine but it should not reach the boundaries of corruption or illegal earnings.

541. The authorities in Sindh, KPK, Baluchistan, Islamabad and FATA should follow the land record computerization system following the Punjab.

542. There is strong need to tackle the factors which generate or promote corruption. A very comprehensive list of causes of corruption should be prepared, department wise and sub-office wise, by some NGOs in Pakistan and strategy plans / measures be recommended to deal with each case separately.

543. The Government, both at the Federal & Provincial levels, must ensure compliance with the Public Procurement Rules (PPRA). In case of alleged violations, the bidders must be encouraged to file cases with the NAB. 544. The Government of Pakistan should show effective control over foreign exchange companies and cross-border transactions and follow money-laundering cases for their prosecution and conviction.

545. The FIA lacks the capability to pursue financial crimes and money laundering cases, which are highly complicated, and so it should be strengthened.

546. The wealth assets details of the last 10 – 12 years, submitted to the Election Commission of Pakistan by all the MNAs / MPAs / Senators, need to be thoroughly checked & cross checked and in case of proven wrong declaration, the person should be disqualified for future elections.

547. The Government or NAB should announce an annual award for 10 public sector bodies / companies which demonstrate anti-corruption leadership and make them role models for others to follow.

548. A large no. of MNAs / MPAs don’t have the National Tax No. or don’t pay any income tax.

It is extremely essential to undertake an independent study by an independent research Centre as to how they have funded their election campaigns in the past, which costs millions of Rs. 549. The Election Form should be made more exhaustive and must include new columns such as the value of assets at the time of purchase & at present market price as well as how they were acquired.

550. It must be made compulsory for all candidates to provide annual income & expenditure and wealth statement of the last 5 years at the time of contesting elections. Another column may be added as to their estimated election expenses & how they are going to finance these expenses.

551. Corrupt money goes into stock exchange as there is no capital gains tax and no question is asked about the details of investment made in the stock market. So it is appropriate that necessary changes be made in the tax regime to ensure that the sources of income of investment made in the stock exchange are disclosed, if and when demanded by FBR. 552. NAB/FIA must conduct an accountability of its own officials along with the disclosure of information about their assets at the time of joining NAB/FIA and their current assets.

553. There is a need to reduce contact between the tax officials & the business class or tax payers by making the tax system more and more e-based as well as easy.

554. It is important to improve the morality level of the lawyers’ community who defend tax dodgers and corrupt officials before the courts. It should be incumbent upon the lawyers to satisfy themselves about the true position of the defendants and ensure the money involved is not black.

101

555. Both the legal counsel and tax firms may be made accountable for their wrong deeds or advice or defense by their respective professional bodies.

556. The technical competency level of NAB will have to be improved substantially if it has to deal with a wide variety of cases of from LNG imports to Modarba Scam and OGRA scandal.

The NAB, is, therefore, required to hire services of highly skilled & honest professionals to seek their advice. Award of contract by the government bodies covers a large variety and it is nearly impossible for NAB to fully comprehend the intricacies and technicalities while examining different contracts. For example, examination of an LNG contract or 3G contract involves highly quality experts in petroleum and computer fields.

557. There should be an independent body for the anti-corruption staff to secure their job. An exclusive body needs to be established to meet such difficult emergencies and provide protective cover to those involved in this exercise.

558. A federal or provincial secretary has to daily take dozens of decisions and some could be wrong or influenced by the top political leadership or through corruption. If he takes decision on merit, it is still doubted. However, the bureaucrats need to learn & be educated to take decisions on merit whatever the public may think or pressure they face.

559. Integrity Test of all top bureaucrats should be held annually so that the necessary measures could be considered to keep or strengthen their integrity level.

560. Let every department, office, organization & their sub-offices identify their spots / opportunities of corruption and place them on their website with recommendations and remedial steps and ways to overcome or to tackle the problem. For example, if an SHO does not record an FIR, his office should show the Tele. No of the officer to be contacted for the purpose. In case of misuse of power by a Customs Officer, the complaint may be immediately lodged with the Collector Customs etc.

561. It is said that everything is fair in love and war and as we are presently fighting war against corruption, so this phrase needs to be extended especially in the context of the Pakistan Rangers crusade against corruption in Sindh or other places. As everything is fair in love and war, all agencies, which are in a position to contribute towards this goal, should be fully supported and no protection should be provided under the guise of the provincial autonomy or scope of responsibility of any particular agency.

562. The oath of office of the President, Prime Minister, Chief Minister & Ministers of the Federal and Provincial Governments needs to be amended to include “not to indulge in corrupt practices, directly or indirectly, in any manner or form without any fear or favor or influence or pressure or for my personal or family or friends’ gains etc.”.

563. According to Haroon Akhtar Khan, Advisor to the PM on Revenues, the total value of smuggling related items stands at $9 billion equivalent to 3.88% GDP causing Rs. 300 billion revenue losses (Daily “The News” 23-12-2015). Cures for stopping or reducing traffic of smuggling goods are improving tracking system, quick justice system, tough penalties, strong enforcement of rules & regulations, zero tolerance for those keeping smuggled items, destroying seized items, public information campaigns not to buy or sell smuggled products, cooperation between public & private sectors and international organization and foreign countries’ custom departments etc.

564. It is suggested that the FBR / NGO / NAB may consider a proposal of annually publishing 100 Top TAX EVADERS/DODGERS of Pakistan which will constantly act as a deterrent or discourage people from committing major tax evasion / irregularities. This is no doubt a difficult assignment but it is very likely to produce good results.

565. The NAB may get research undertaken to locate and identify renowned and famous leaders, cabinet ministers, bureaucrats etc. along with their modest assets for maximum publicity in the electronic and print media, worth emulation by others.

102

566. In coordination & assistance from the top 25 foreign tax heavens, a directory titled “100 Top Money Launderers of Pakistan” may be published and uploaded on the website. This job may be assigned to the State Bank of Pakistan or NAB or FBR. 567. There is a great need to have an agency with highly trained manpower to independently observe work of various anti-corruption agencies in the country.

568. Media representatives should get training for investigation reports on corruption related activities in the country.

569. A tool similar to the one developed by UNDP called “Corruption Tracking Tool” may be developed in Pakistan to track corruption in major corruption departments / bodies / offices.

570. In order to combat corruption in the education sector, a Youth Innovation Library may be launched to innovate anti-corruption measures.

571. Women Empowerment Hubs should be established at places where natural disasters occur to build the capacity at grassroots level of the women to improve service delivery and meet emergency requirements as well as during construction phase to reduce corruption.

572. Women Clubs should be established in different cities all over the country to discuss ways & means to teach morality & integrity building in their children.

573. Some examples of corruption or illegal practices in the Police Department are kidnapping for ransom, stealing items dumped in warehouses, pickpocketing the citizens while conducting their physical search, lifting goods while checking, tampering official documents, receiving illegal money from citizens by threatening them of dire consequence, keeping citizens in illegal confinement & receiving money for their release on fake documents etc. complete the list for necessary remedial measures.

574. All government and semi-governments institutions must prepare and publish their own “Annual Anti-Corruption Performance Report” comparing it with last 5 years performance regarding complaints received along with its next year’s corruption prevention program etc.

575. The NAB should formulate a simple one page questionnaire enquiring from all government and semi-government institutions both Federal & Provincial Governments, to answer with “yes” or “no” of implementation of rules and regulations with regard to recruitment / promotion / transfer /sale & purchase procedures, code of conduct etc.

576. Each organization / institution / office of both the Federal & Provincial Governments should formulate its own Micro Anti-corruption Plan specifying steps / measures according to its specific requirements or rules / procedures and get its approval from the higher authorities because every office has its own corruption scenario. For example, a university has to buy some scientific equipment and its specifications are determined by the Head of Department who may decide them in a way that only a single seller is in a position to submit its quotation thus making all others out of competition.

577. Honest feedback and follow-up mechanism which are accurate and timely will ensure better results for NAB and will enable it to perform honestly and better. So it will be extremely important that in this battle, such mechanism should be in place in all offices and sub-offices to examine the different decisions taken are in accordance with law, justice and prescribed rules and regulations. Respective administrative office should accordingly direct its subordinate offices to ensure establishment of an independent scrutiny committee for this purpose.

578. A prominent leader of Pakistan Tahreek-e-Insaaf, Aleem Khan, sold land for Rs. 2.6 billion in 2012 as against the current market value is not more than Rs. 1.04 billion to a government organization, Employees Old Age Benefits Institution (EOBI) which caused it a loss of Rs. 1.5 billion through connivance. This case is pending with the Supreme Court, according to the Daily “The News” 04-01-2016. Prevention of such unfair deals of the top officials with the private parties is an uphill task. Only punishment to both the parties after a fair trail is a way in such kinds of mega corruption cases and NAB should seek legal advice from some reputed anti-corruption institution of foreign countries to strengthen the law.

103

579. There are other certain forms of corruption, corrupt practices or malpractices or misuse of authority by the top political elite of the country such as income receipts from car parking lots, monthly income from police stations, sale of party tickets at the time of elections, sale of party positions / designations by the party leadership, release of disputed land / property of high value from the Qabza Group through use of political and police pressures, appointment / transfer of high profile posts, financing of big functions / meetings of the top political leadership, forced donations for the political party from those entering the political system and ordering registration of FIR by the police etc. These forms may not directly harm the economy of the country or may involve transfer of funds from one section of the society to the other but a few of these will eventually adversely affect the country, as far instance, sale of party tickets to a person who will try to recover this amount after being elected through fair or foul means during his term as far as possible. Some reduction or up-gradation of the morality standard of these powerful people plus inculcation of integrity ethics in them is required by providing them reading materials and compulsory few weeks’ reformation course.

580. Most of the illegal money is kept in Benami Accounts in the banks by the top elite class. The banks should regularly provide all the bank accounts with balance of over Rs 1.00 million to the NAB & FBR along with the details of the account holders.

581. All government and semi-government organization, both Federal & Provincial as well as privately managed bodies dealing with the public should be directed to undertake public awareness campaign to tackle corruption or misuse of authority or fraud etc. by the private sector in their respective areas of operation.

582. The country has seen mega scandals / frauds in respect of private housing societies. People have given away billions of rupees in different housing societies for purchase of land to the private sponsors and the land has not been given to them. To meet this menace, it is suggested that all the newspapers and magazines should be bound by some suitable amendment in the laws not to accept any such ads. without first getting the confirmation / clearance letter of the relevant authority such as LDA / KDA / CDA / DHA and this should be made an essential part of the ad.

583. The NAB / FIA should regularly have close watch over all ads. of the housing schemes published in the newspapers and examine their authenticity and take immediate action and / or warn public accordingly. There should be a separate watchdog for such schemes because major scandals in this sector go on erupting from time to time and innocent people lose billions of rupees.

584. The government may consider imposing “Anti-corruption Emergency” in the country. Its details & scope may be determined by a committee consisting of representatives from NAB, FIA, ACEs and Public Accounts Committee.

585. The NAB should undertake a study and print a highly comprehensive report carrying all the laws relating to corrupt & illegal practices by the government officials and the private persons for distribution to all the concerned persons.

586. According to an article in the Daily “The News” 16-1-2016, Alauddin Masood says: “NAB recently appointed Deputy Chairman whose name when literally translated reads as Distinguished Prince (DP), claimed Rs. 6.3 million, in one year, over and above his pay and perks. In 376 bills, DP claimed to have bought medicines worth Rs 4.5 million and spent Rs. 2 million on dry fruits served to guests”. The above story looks unbelievable. If true, there should be very little hope of winning the war against this evil. All major appointments need to be reviewed by the competent authority for the selection of men of spotless integrity.

587. The non-private commercial banks are facing bank defaults running into billions of rupees and they are not seriously pursuing these cases in the courts & the courts are giving relief to the defaulters through stay orders. This corrupt practice needs to be tackled first through suspension / dismissal of those who originally granted loans to those defaulters and secondly,

104

these cases be referred to the Special Courts to be established for this purpose through an amendment in the relevant act.

588. About 2.5 million Pakistanis should be tax legible in the country based on the data of total no. of registered motor cases / jeeps and station wagons etc. or one car out of about 80 persons as against no. of actual tax filers of nearly about 1.0 million which means about 1.5 million are not filling returns. In order to broaden the tax base, the FBR has decided to motivate young students, by enrolling them as volunteers to visit commercial areas to convince non-filers to enter the tax net. Similarly, the NAB should engage students to visit the major corruption ridden hot spots such as police stations, land revenue offices, courts etc. to pursue the objective of making these places corruption clean.

589. The country does not need surgical operation but surgical operation in each minister’s office, sub-office, and department, autonomous and semi-autonomous body separately etc. The details of surgical operation for each office may be determined by a team of internal officers and external experts dealing or connected with the office.

590. In the recent past, Sindh has been very prominent in the news because of daily disclosures of new corruption cases such as Sindh Anti-corruption Department has prepared a list of 34 corrupt officials of Sindh Education Department who are involved in corruption which was handed over to NAB, and it includes names of officials involved in fake induction of workers.

NAB is taking action against corrupt Sindh bureaucrats etc., and every day a new case of corruption comes up relating to the Sindh government or bodies under its control. In such a scenario, the NAB office in Karachi has to be significantly strengthened.

591. In a statement, the Chief Minister Punjab offered to go home if corruption is established of a single penny in any project, (Daily “The News” 11-2-2016) which needs wide publicity in both print & electronic media for at least a few months. A copy of the similar statement may be sent to all the top political hierarchy for their signature as well and the names of all those who don’t send back their signed statement within one month should to supplied to media for publication etc.

592. Massive corruption has been detected in different departments of the Sindh Government especially in Sindh Building Control Authority by allotment of thousands of acres of land etc. involving sums of billions of rupees. To avoid such mega scandals, the Standard Operating Procedures may be drastically changed and the power may be transferred to high powered committees which should include external specialists / experts in the relevant field.

593. The Senate Committee on Law, Justice & Human Rights recently made 51 recommendations to curb corruption in the Federal Government Departments. A separate body may be formed to ensure implementation of the proposals.

594. All persons facing corruption charges / enquiries by NAB, FIA, ACE, CMIT, PMIC, and even at the department level involving amount of Rs. 10 million or more should be placed in the Exit Control List.

595. The national campaign against corruption must emphasize that the fight against corruption is a collective social responsibility and a common cause and we all are one together in this war.

596. Special security cover may be provided to the investigation officers of the corruption probing agencies where the corruption figure exceeds Rs 10 million. Similarly, service security is also equally important for them so that they could make enquiries without fear of losing their job or suspension or transfer etc.

597. NAB / FIA should make enquires against all reported cases of corruption and embezzlement etc. against all the political leaders or bureaucrats etc. irrespective of their political status or affiliation or social status, across-the-board, without any distinction or fear and favor as a matter of policy and priority.

598. Enquiry proceedings should be initiated in accordance with working system of the anticorruption bodies and be concluded with transparency within a target date of six months. No

105

case, high profile or otherwise, should be kept pending or suspended for more than 6 months in any case.

599. The deployment of smart technology in a widespread manner is very likely to produce encouraging results as in evident from the Chilean experience, which has earned a worldwide reputation for excellence, transparency and efficiency involving 850 purchasing organizations which completed 2.1 million purchases by issuing invoices totaling $ 9.1 billion. All possible measures should be initiated to use smart technology following the Chilean experience.

600. Pakistan has agreed and ratified the UN Convention against Corruption (UNCAC), which had been ratified by a vast majority of its 140 signatories. This instrument coves a global framework involving developed and developing nations and covers a wide range of corruption related activities. To make the Convention effective, establishment of a proper national monitoring mechanism is necessary for strict compliance.

601. Use of information and communication technology should be used, as for electronic voting to reduce election expenses, which will in turn reduce temptation of compensation and recovery through right or wrong means after being elected.

602. Posts of judges of the anti-corruption courts should not be allowed to remain vacant for a single day as a matter of high priority.

603. Disbanding NAB and having another anti-corruption institution by another name will hardly improve the country’s hope of earning a better score in the world’s anti-corruption ranking in the future. Any top anti-corruption institution by any name must be independent and have full powers to catch and interrogate the suspects but of course without disgracing him or his family at the time of raiding or arresting them. Any such institution has to be independent, transparent & answerable to none, as the country’s interests have to be supreme. Having a new agency with a different name is surely not going to produce better results such as changing the name of PIA. 604. Nigeria & the United Arab Emirates have recently signed a bilateral agreement, which will enable Nigeria to recover its stolen wealth stashed in the banks in UAE. Pakistan should sign a similar agreement with UAE at the earliest.

605. NAB should not act as not only against the Federal Government managed organizations / departments but also against Provincial Governments with regard to launching investigation, conducting enquiries & issuing arrest warrants against the individuals suspected of financial terrorism, irregularities and misappropriation in the public sector.

606. Denmark has been amongst the top corruption clean countries for the last many years for the reasons that the people has high degree of trust in each other, fair working conditions, social security, health facilities, high income salary structure, pension schemes, protection against sickness, free school education, generous unemployment benefits etc. and thus no serious compulsion exists to make extra money. In addition, governance, accountability and criminal justice system are of high standards. It ranks very high in the rule of law index. It is worth mentioning here that Denmark does not have any anti-corruption agency. The above are the prerequisites to bring any country on the path of success in its anti-corruption drive. It would be clear that the goal of corruption clean system will demand all round development in all sectors of the country.

607. The NAB has uploaded on its website and a highly detailed Performa or questionnaire which every sponsor of the project costing Rs 50 million and above is required to fill up and submitted to its Awareness & Prevention Division (Daily “The News” 22-2-2016). The NAB deserves high appreciative for this step. The NAB will have to ensure that required information is provided by the sponsors timely and the Agency thoroughly examine the information with necessary comments / actions.

608. To improve the working of NAB and achieve highest professional standards, another suggestion is that an Advisory Board comprising of the retired judicial officials & bureaucrats

106

is formed which will watch whether its working is impartial, does not violate the laid down procedures, does not follow non serious & small complaints and checks are impartial etc.

609. Services of top international anti-corruption experts should be hired by the Federal Ministry of Interior and posted in NAB / FIA / ACEs for a few months for training of their staff members from time to time.

610. It is extremely important for the NAB staff to be trained to learn the difference between honest errors of judgment as against the decisions based on malafide intentions to make money. It is a highly complex and difficult to judge the difference but nevertheless this objective needs to be pursed with all fairness & seriousness.

611. All stakeholders in the system, government, opposition, judiciary, military, bureaucracy, businessmen and industrialists etc. should sit together and evolve a credible & trustworthy mechanism to hold accountability of every segment of the society without any fear or favor.

612. The NAB may establish a NAB Club in all major cities of the country to encourage people to join it and their members may perform voluntary work for NAB in educating people regarding corruption issue and identifying corruption acts etc.

613. An Ethics Development Center may be established by NAB in collaboration with the Chambers of Commerce & Industry for preparation and promotion of Business Code of Ethics.

614. NAB may organize exhibitions, fun fairs and TV talk shows etc. for spreading the message of a clean society.

615. A giant group of anti-corruption agencies, media, civil society, businessmen, industrialists, lawyers and international donors etc. should launch public integrity campaign projects.

616. The public sector, business sector and civil society should join hands in forming a coalition to be called PAKISTAN-PAC, which would should include about a thousand members and it will formulate an action plan to combat corruption in the country and its progress will be subject to review by an international evaluation team.

617. A team of highly qualified professionals / experts should visit each ministry, department, office and corporation etc. one by one to carry out an independent integrity audit check and prepare recommendations to deal with the internal corruption issues.

618. All Government Ministries, Departments and Offices etc. must be directed to provide regularly their own annual Anti-Corruption Action Plan to NAB / FIA / ACEs along with the progress made during the previous year.

619. During the final proceedings of the contract awards by the different departments costing beyond Rs. 50 million, an independent representative from NAB / ACE should be present to monitor the decision making process.

620. All politicians, public servants and businessmen etc. should be barred from opening bank accounts in foreign countries or establishing offshore companies through some legal means.

621. It should be ensured that the top anti-corruption agency NAB should be completely independent, have the powers to arrest foreigners and Pakistani nationals outside the country involved in corruption, develop witness protection facility, prepare a corruption intelligence program, be allowed to involve in corruption prevention activities within the ministries and its offices, get engaged in developing civil society and report its performance at its website.

622. The NAB has prepared a comprehensive package for implementation to overhaul the country’s tax machinery (Daily “The News” 21-4-2015). There is strong need for speedy implementation of its recommendations without delay.

623. All colleges, universities and educational institutions should hold at least one annual debate on the evils of corruption and its eradication strategy.

624. A survey should be undertaken by an independent organization or NGO to identify & select 100 INCORRUPTIBLE ROLE MODELS OF PAKISTAN every year.

107

625. Workers, staff and officers associations in different departments & bodies should be vigorously involved in corruption eradication drive by inviting their recommendations and representing them on the board and dealing corruption complaints etc.

626. Some major associations or bodies like Pakistan Engineering Council and Pakistan Medical & Dental Council, Federation of Pakistan Chambers of Commerce etc. should be asked to participate in the anti-corruption efforts through their inputs in the policy making and implementation.

627. The government should annually hold a National Anti-Corruption Conference with representatives from all major political parties, NGOs, Civil Society, Lawyers, Police, Judiciary, TIP, Chambers of Commerce and Industry etc. to formulate practicable and realistic policies dealing with prevention of corruption.

628. According to the results of the TI, mostly rich countries are least corrupt such as Denmark, Finland, New Zealand, Sweden, Singapore & Switzerland, whereas the most corrupt countries are amongst the poorest such as Somalia, North Korea, Afghanistan and Myanmar. Most of those countries, which have better corruption ranking, have high per capita income. It is, therefore, imperative to speedily raise Pakistan’s per capita income.

629. Wealth distribution in Pakistan is highly uneven with the top 10% of the population earning 27.6% while 10% earn only 4.1% of the total income. These inequalities prompt the poor to do whatever is possible to earn legal or illegal income. Income disparities tend to produce incentives to match the upper income groups’ living standards through legitimate or illegitimate measures. Greed appears to be higher in inequitable societies and thus promotes corruption if the opportunities are available. In such circumstance, a National Commission on “Elimination of Greed and Inequalities” may be formed to recommend necessary measures.

630. A very serious issue faced by NAB / FIA / ACEs is that the accused who has plundered or committed acts of corruption in millions or cores of Rupees and is thus capable of engaging highly competent lawyers with fee running in millions whereas the NAB’s lawyer can’t be equal match with fee of a few lakh rupees. How should the NAB meet this challenge? The possible ways are the NAB’s team should work hard to build their prosecution case extremely strong besides when the accused are in their custody, the interrogators should be highly skilled, competent and widely knowledgeable in financial terrorism and some incentives should be given to them in case of winning the case.

631. In a student’s Textbook one incident, if it is true, should be quoted. When the Quaid-e-Azam was ill and staying in Ziarat, somebody came to know that they were two cooks of Faisalabad, whom the Quaid liked their cooked food. They were called at official expenses & when the Quaid came to know that they had come at official expenses, he immediately told them to go back & issued a cheque of their expenses, for depositing it in the national treasury. In sharp contrast in Pakistan at present, it is common knowledge that official parties are arranged to meet private commitments / requirements.

632. The NAB / FIA / ACEs should regularly send their representatives to the top corruption ridden offices & departments to understand their techniques of corruption for three months as a part of their training course.

633. Fraud is committed by private people through variety of attractive incentives such as offering double or extraordinary high monthly profit on their cash investment. People are also offered cars or motorcycles, or plot on easy installments or promised employment with handsome salary and jobs with visa of foreign countries. People are also told to transfer some money into an account for getting some attractive prize or offered loan at a very low interest rate and they are invited to buy plots in housing scheme at a very attractive & low cost. An aggressive and prolonged campaign needs to be launched in both print & electronic media on a regular basis for an indefinite period to stop people from throwing their money into such schemes.

108

634. An internal accountability system has been launched in NAB. All other anti-corruption agencies should follow the example of NAB and take necessary action against its own inefficient and corrupt elements.

An overview of the NAB performance for one year, 2015, is given below for an assessment of its performance.

1.No of Complaints Received = 28844 2.No of Complaints worthy of investigation = 11744 3.Complaints reaching the stage of enquiry = 5723 4.Complaints under investigation = 2432 5.References filed with the Accountability Court = 1131 Source = Daily “Dunya” 08-12-2015 It is obvious from the above table that ultimately only 1131 complaints out of 11774 investigations reached the reference stage, which are only 9.60% of the total filed complaints and it is insignificant whatever the reasons may be. There is certainly need for significant improvement in the whole system to build confidence in the country’s accountability system.

It is also important to identify the reasons why 17100 received complaints were found to be false or unworthy of investigation, so that necessary advice must be given to file genuine wellbased and serious complaints to NAB through NAB ad. As well as its website.

635. Due to failure of a large no. of complaints reaching the investigation stage, the NAB website should provide comprehensive guidance of how to provide information along with the required documents as evidence. “Guidelines for Filing Complaints” should be added in the NAB website besides its publication in the newspapers.

636. Character building societies have been formed in educational institutions by NAB. Similar societies should also be launched in all government / semi-government / autonomies bodies / institutions / departments because the character building education for the employees is also equally important even at this late stage.

637. Teach, educate and propagate the lesson of “Never Try to Keep up with the Joneses” through both electronic & print media must be launched by the civil society. There is no doubt that it is hard to escape the influence of those around who are seemingly wealthy, free and easy lifestyle and as a result many of us live and try to live beyond our legal means and then make up for the deficit through both fair and foul means.

638. At the start of each daily session of the Senate, National Assembly and all the four provincial assemblies, a 5-minute lecture / speech on the following and related subject should be delivered based on research / surveys / examples by some competent Islamic scholars and other specialists: 1.Consequence of Corruption on the Economy 2.Misuse & Abuse of Authority as Public Representative 3.Illegal Practices 4.Morality 5.Integrity and Honesty 6.Character Building 7.Theft of Electricity, Gas & Water 8.Money Laundering 9.Business of Hundi / Hawala 10. Human Trafficking / Smuggling 11. Favoritism and Nepotism 12.Extortion & Black Money 13.Embezzlement 14.Role of Legislature in Combating Corruption 15.Definition/ Explanation of Corruption

109

16.Income Inequalities 17.Character Development 18.Rule of Law 19.Brief on Anti-Corruption Agencies in Pakistan 20.Transparency International Pakistan 21.Novel Ways of Corruption in Pakistan 22.Government Measures to Prevent Corruption 23.Anti-Corruption Strategy for Pakistan 24.Simple Living and Austerity 25.Kinds/Forms of Corruption 26.Corruption and Terrorism Nexus 27.Getting Free Land Plots as per Government Policy 28.How to be symbols of Integrity for the People 29.List of All the Corrupt Acts of both Government Officials as well as by the Private sectors.

30.Smuggling of Goods 31.Tax Evasion & Avoidance 32.Kickbacks & Commission 33.Hoarding of Goods 34.Black Marketing 35.Off Shore Companies 36.Following Legal Practices 37.Legalized Corruption 38.Opening Bank Accounts in Foreign Countries 39.Awarding Contracts as per Prescribed Rules and Regularities 40.Misuse and Unauthorized Use of Facilities Provided by the Government to its Officials 41.Attending Assemblies Sessions Regularly.

42.Buying Properties in Foreign Countries 43.Pakistan’s Corruption Ranking in the World.

44.Contribution to the Assemblies’ Proceedings on different Issues 45.Gifting of Assets and Fund Transfer to the Children/Parents 46.Understanding Money Trail System 47.How the Country’s Wealth is Plundered by the corrupt 48.Refusing to Get Salary Without Attending Assembly Sessions.

49.Frauds Committed by Private Persons in the name of Islam 50.Benami Accounts in The Banks 51.None-Payment of the Bills / Dues 52.Filing Income Tax Returns and Wealth Statement.

53.Payment of Income Tax and Sales Tax 54.Role of Elected Representatives in Corruption Control.

55.Giving Illegal Orders to the Staff 56.Sharing your income/wealth with have-not of the country 57.How to Control the Greed 58.Adulteration of the Food Items 59.Creating artificial scarcity of Goods 60.Land Grabbing 61.Investing Government Funds in selected Places/Areas 62. Follow 3Ts–Transparent Tendering Techniques–for Contract Award.

639. To tackle & educate about Modaraba scam where sponsors induce poor, innocent and largely uneducated people to invest in their illegal Modaraba / Musharike business at highly profitable rates thus indulging in corruption, corrupt practices and cheating in the ploy of

110

Islamic mode of investment, the NAB of FIA should sponsor ads regularly or hold TV programs against these fraudulent schemes in the electronic and print media on a massive scale for a number of years.

640. There should be a new Ministry to be called “Ministry of Simple Living, Austerity, Contentment and Character Building” with the specific task to inculcate simple living austerity and character building in both private & public life of political leadership, businessmen, students, industrialists, youth government servants & common man etc. or this assignment could be given to the proposed new “Ministry of Anti-Corruption”.

641. Pakistan is probably the only country in the world where the lawyers help the accused flee from the court premises or beat the judges or them and then they go on strike without realizing the suffering of the litigants. Even fake stamp papers are used in millions of rupees in property deals. When the scenario of rule of law is so grim, the battle against corruption requires extraordinary commitment by the government as the corruption issue is of gigantic magnitude as the Pakistanis are said to have not only done PhD but post doctorate in corruption as well. It is extremely important that regular accountability of the rich and mighty across the-board should be initiated by the Prime Minister of Pakistan with special address to the nation on all over 100 TV channels of the country.

642. It is extremely essential to improve efficiency and develop punctuality in the offices to reduce work or decision delays so that the people are not forced to pay to get their job done without extra delay.

643. Creative writing of articles and books on corruption issues should be funded & encouraged

by NGOs & other organizations.

644. Top posts in all the anti-corruption organization like NAB, FIA, ACEs, PMIC, CMIT, etc., must be filled from the retired or serving judges of the Supreme or High Courts with fixed terms and security because it is difficult for old or retired bureaucrats to face the tremendous pressures in view of their training and service experience.

645. The Pakistan Government has signed the Convention of Mutual Administrative Assistance in Tax Matters developed by OECD for international tax cooperation and exchange of information. Another agreement has also been signed with the Swizz Government for getting details of the bank accounts of Pakistani nationals in the Swizz Banks. It is now extremely important that necessarily steps must be taken to get the required information as quickly as possible.

646. Conviction rate is not poor only in case of corruption cases but also in all other criminal cases. Conviction rate as a whole in Pakistan is extraordinary low at about 10% as against 45% India, 38% Bangladesh, 80% Malaysia, 100% Indonesia, 95% USA, 86% UK (Daily “The News 13-03-2016”) due to political appointments in the police, poor investigation techniques and corruption. There is need to establish a Judicial Commission to suggest steps to enhance the rate and introduce innovative investigation techniques for all criminal and corruption cases.

647. Pakistan has been ranked at 143rd position in the world ICT by a United Nations Report of 2015 out of 167 countries. This means that the country has to go a long way to improve information technology, which is critically required for combating corruption. So serious efforts will have to be made in this direction on priority basis.

648. We have developed another equation of corruption as given below: Corruption = Need and / Greed – Opportunity – Accountability So we have to attack need as well as greed of the people and reduce the extent of opportunities available as far as possible, raise economic growth and moral development and take other measures to improve accountability level. Meeting of the people’s needs is an economic challenge as over 1/3rd of the population is living below poverty line, greed combat is a moral

111

up gradation subject, reducing corruption opportunity is an administrative question and accountability has to be done by the anti-corruption agencies. These are, however, tall orders for Pakistan’s establishment.

649. The independence of the specialized anti-corruption agencies should be ensured through necessary amendments or other legal means besides security of service of the top officers, sufficient budget and appropriate immunity against civil litigations.

650. A committee may be formed by the Federal Interior Ministry to study a highly useful and comprehensive book “Global Program Against Corruption” of the United Nations Office on Drugs and Crime to recommend necessary measures for implementation in Pakistan.

651. Pakistan should implement all the requirements of “United Nations Convention Against Corruption” and the “Stolen Asset Recovery Initiative”.

652. To judge the performance of the anti-corruption agencies in Pakistan, the Government should use International benchmarks based in the reports / surveys of the Transparency International, Global Integrity Report, United Nations Office on Drugs & Crime, USAID, Global Fraud Survey, International Bar Association, World Bank’s Control of Corruption Indicators, Global Corruption Barometer, Bribe Payers Index, Anti-Bribery and Corruption Survey and Doing Business Reports etc.

653. Volume of work of NAB will tremendously go up especially if it decides to quickly deal & conclude the pending cases. For instance as per report in “The News” (17-10-2015), the NAB was to decide the fate of 1133 cases in 2 months. Besides it is fighting cases against 3 formers PMs, 2 former CMs, 14 high profile politicians & 32 bureaucrats and over thousand cases along with an internal accountability drive against its own inefficient and dishonest officers which make the challenge extremely difficult. It is, therefore, appropriate that a study is internally conducted by all the agencies to suggest recommendations for speedy disposal of all the pending cases.

654. In order to show that the NAB’s anti-corruption drive is non-discriminatory, it must go ahead speedily with pending cases of all the provinces simultaneously without any fear or favor.

655. A research study may be got conducted by NAB / FIA titled “Why Do Financial Terrorism Cases Fail in Court?” to find out major reasons behind the acquittal of corrupt accused so that a counter strategy could be framed.

656. Banks loans write-off were another major scam in Pakistan’s history, Rs. 87 Billion were written off in 38 years period: Rs. 2.38 Billion between 1971 to 1991 and Rs. 84.62 billion between 1992 to 2009 (Daily “The News” 13-03-2016). There is strong need to initiate enquiry & action against the beneficiaries & the bankers who helped in writing off these loans.

657. Corruption mechanism in Pakistan has a unique feature. The top man or the Chairman of the body or institution holds a meeting of the Committee which is the competent authority to approve a proposal which approves a proposal which is against the interest of the body or the Co. and so it will incur serious or huge losses to the Co. after setting the matter of commission or kickbacks with the beneficiary. In case any enquiry is held or matters taken up by anticorruption agency, it becomes very difficult to hold anyone responsible. In such a scenario, what is the solution? Under this difficult scenario, it is suggested that cases may be initiated against the entire committee members who originally approve the proposal.

658. Businessmen who are found to be indulging in corrupt practices or offering bribes to the government officers should be banned from competing in the Government-funded projects for 5 to 10 years. A special legislation will be required for details.

659. Hotspots of corruption in all government departments, bodies, enterprises etc. may be identified & notified on their websites. So accordingly, CCTV cameras may be installed at these spots. This step will contribute to the efforts in curtailing corruption.

660. When the general impression is that corruption occurs at both places, upstream & downstream, it has wings, not wheels, & so it can be early deposited abroad through Hundi

112

System & generally leads to promotion & not prison, the task of controlling corruption becomes stupendous. A campaign is required to remove these impressions through their practical repudiation and denial stories.

661. A new Pakistan’s anti-corruption strategy should be prepared and it has to be very comprehensive, clearly articulated and encompassing all areas & sectors with priorities and implementation sequence etc.

662. In order to evolve a corruption clean culture in the country, the small ruling elite of politicians, bureaucrats, businessmen & industrialists etc. has to become a role model for the masses. To develop such a clean and extraordinary culture, training them in morality classes is a must.

663. It is extremely important that proceedings in fake sales tax refund scam case in which a sum of Rs. 400 billion was issued as sales tax refunds & input adjustment against fake & flying invoices in 2012-13 involving about 4000 instances be seriously persued The investigating agencies must give it top priority to recover the amount and punish the culprits.

664. NAB / FIA is dealing with cases involving billions of rupees & especially in their recovery.

Lack of sufficient qualified and competent manpower in these institutions must not hinder work on multi billions rupees fraud cases as the benefit cost ratio of new employment will be very high. For instance, if they employee 20 additional officers at a salary of Rs. 1.50 lakh / month, their total salary bill will come to Rs. 10.80 million for 3 years against recovery which is expected to run into billions of rupees.

665. In view of the work on China – Pakistan Economic Corridor, it is all the more important that the level of corruption is substantially reduced to make the corridor a success story. The Government may, therefore, ensure works on all the related projects are corruption clean as far as possible through an independent high-powered cell to oversee the whole system.

666. In Pakistan, new, novel & unthinkable techniques of corruption go on cropping up on a daily basis and even new terms such as China – cutting will soon be a part of the dictionary. With daily introduction of new ways of corruption, the authorities dealing with corruption will have to be strengthened accordingly. It is therefore extremely important that some system may be in operation all the time to constantly improve competency & capability of the personnel in the investigation agencies. This obviously is not an easy task to match the corrupt’s innovative ways & a few evil geniuses will have to be traced out for appointment in NAB / FIA & ACEs. 667. In the OGRA scam, a prosecution witness was beaten by the lawyer of the top accused in the Accountability Court (Daily “The News” 4-9-2-2015). The wealthy & influential accused manage to delay the case or go scot free because of lack of the prosecution witnesses etc. in view of the threat to their life. It is, therefore, necessary for the government to provide special security to the prosecution witnesses. It is a quite difficult objective but for sake of building a just society, the government will have to enhance security budget in such cases.

668. It is a common practice that black or ill-gotten or tax-evaded money is sent abroad through hundi (unofficial channel) and then brought back to Pakistan. In some cases, each foreign remittance runs into millions of rupees to individuals in Pakistan. Now the problem is how to plug this source because the remittance is crucial for Pakistan’ foreign exchange economy.

The government should appeal to the oversees Pakistani not to send their money through unofficial channels with wide publicity in the electronic media for months besides massive campaign is launched to eliminate the system.

669. According to available information from the press reports, if reliable, Dr. Asim Hussain, kept his illegal gold and funds in strong rooms of his friends, made 1500 illegal employments in the Sui Southern Gas Pipeline Ltd. during his tenure as the Petroleum Minister and committed serious irregularities as head of the Pakistan Medical & Dental Council, besides many others. When in a country so highly educated and financially sound person could commit such acts for sake of money, the challenge of corruption control in Pakistan could be

113

easily imagined. He may be requested to suggest anti-corruption measures for Pakistan as a part of Plea Bargain Deal, if possible.

670. A Morality Test designed by a team of economists, psychologists and political analysts of all the past Presidents, PMs, MNAs, MPAs, top 1000 bureaucrats, top 2000 businessmen & industrialists (a total of 5000) may be compulsorily undertaken to assess where our top people in public & private sectors stand in the morality world. Based on the results of this test, a moral building strategy should be developed for the country.

671. It is suggested that all the anti-corruption acts and laws should be continuously amended on a monthly basis to meet the fast changing and emerging needs as a result of investigations of new cases if the war against corruption has to be seriously fought.

672. The NAB / FIA or ACEs should not restrict their investigation to the suspect corruption accused only but also particularly extend their investigation and scope towards long-serving close personal staff of bureaucrats or parliamentarians as indicated by NAB Baluchistan’s raid at home of the Private Secretary of the former Baluchistan’s Chief Minister where gold and rupee boxes were found. A comprehensive list of such persons, at least 25, should be especially prepared for future investigation on top priority basis for each suspect accused.

Some incentive or reward should be given to these associates if their information is correct out of proceeds of plea bargain. Identify close confidents of each and every minister and advisor of all the federal & provincial governments of the last 10-15 years. Such information could be of crucial significance in this corruption detection strike.

673. Although the anti-corruption law exists in the country, its implementation in true spirit without any discrimination between poor & the powerful is required. How it is done is a very difficult question but extremely important. To achieve even modest success, some NGO may be engaged for this specific purpose to pursue this objective.

674. Another important way to curb corruption is to ensure implementation of the Right of Information Law. There should be some mechanism to ensure that no violation occurs with respect to RTI. 675. Switzerland is the world’s biggest offshore wealth center with $2.4 trillion in assets in 2014 (Daily “The News” 25-08-2015). A new law has been adopted by Switzerland aiming at immediately freeze and confiscate the funds of politically exposed persons and return them to the country of origin. There is strong need to widely publish this law to discourage illegal money transfer from Pakistan to Switzerland.

676. To shame proven corrupt in the society, photographs of some top infamous corrupt persons may be printed in the print media and exhibited in the electronic TV networks from time to time.

677. An annual “Top 100 Corrupt Persons of the Year”, may be published with photos and their techniques of corruption by the Ministry of Interior for wide publicity. It can easily be one of the best-selling publications in Pakistan.

678. Highly depressing & distressing trend in the war against corruption in Pakistan is almost zero conviction rates of the top elite of the country despite the general view is that corruption certainly exists on a massive scale at this level. The cases are framed and placed before the relevant courts although with some delay and finally the result is extremely poor & disappointing. It is a matter of paramount importance for NAB / FIA to improve their efficiency & performance vis-à-vis the VIPs through extraordinary courage, efforts, hard work, knowledge, capability & commitment. Their past performance may also be uploaded on their website with respect to VVIPs. 679. The top political leadership as well as anti-corruption officials should hold regular consultations with success stories amongst developed & developing countries to share their experience and formulate new or novel anti-corruption policies.

680. In order to inculcate honesty, every school should award a certificate of merit to a few students with record of not cheating to set examples for others to follow.

114

681. A small bookshop in selected schools in all cities of Pakistan may be opened without salesman.

682. Introduce one anti-corruption period once a month for all the classes of high schools.

683. A Pakistan Honesty Movement may be launched on the net in order to enable people to share their experience and enable them put forward their views & ideas for enhancement of honesty in Pakistan.

684. Prepare an Anti-Corruption Law Enforcement Index which takes into account the history of the corruption complaints till the court verdicts.

685. A surprise Integrity Test may be introduced in top corrupt organizations to test the integrity temperature of the employees.

686. A Chapter on moral values should be included in a Textbook of Matric students with the following topics: 1.Be honest & trustworthy 2.Be courageous 3.Be self-controlled 4.Have integrity 5.Be courteous & careful 6.Be fair & just 7.Live simple life 8.Pursue excellence 9.Have perseverance 10.Make the world a better place 11.Take personal responsibility 12.Have empathy 13.Add value to the world 14.Respect others 15.Don’t cheat others 16.Never get or give illegal money 17.Control Your Greed Within Legitimate Means 18.Develop Contentment 687. It is proposed that privately run Anti-Corruption Clubs may be opened by NGOs / Civil Society etc. whose job will be to educate, enlighten and mobilize public opinion against corruption. They will inculcate the virtues of honesty and integrity amongst students, public servants, public representatives, government officials etc. through debates, conferences, meetings etc.

688. Prepare a new index to be called “Anti-Corruption Behavior Index�. Its details should be worked out by a core committee of NAB/ FIA/ ACEs. 689. An Annual National Integrity Index of legislatures, executives, judicial, political, media, civil society and business class etc. may be prepared to assess how the country is behaving on this front.

690. In view of the grave significance of the matter, the Economic Affairs Division may ask foreign aid giving agencies to allocate special fund every year for corruption prevention and control for the government agencies dealing with this matter, NGOs, TV channels for producing special TV programs and universities and colleges for organizing anti-corruption day or essay etc. The war on corruption requires financial resources like a military war against an enemy to win it, as there is no other choice.

691. There is yet another kind of regular corruption in Pakistan like yellow journalism. The reporters of electronic media and newspapers receive monthly payment in an envelope from the political leaders or from foreign or local agencies, NGOs, organizations embassies & write reports in their favor or as per their direction. To combat this evil, owners of the newspaper or TV channel should make their employees to swear on the Holy Book that they will not seek,

115

ask, request and accept any cash or non-cash payment or from any external source under any circumstance otherwise let the Almighty wrath fall upon them. A categorical commitment is necessary and such a declaration may force newspapers and TV channel owners to play their role in controlling corruption in their own system as these newspapers or TV channel daily splash or tell corruption stories.

692. A process of self-accountability of newspapers & TV reporters, TV anchors and top officers of NAB, FIA, ACE, PMIC, CMIT and members of the Public Accounts Committee etc. needs to be introduced in the country in print and electronic media, which will do tremendous good in prevention and controlling corruption in the country.

693. Let all the above mentioned personalities come on TV channels and tell the nation that they have never committed any such unlawful or illegal or shameful act in the past or will do so in future.

694. Plea bargaining system of NAB needs to be made completely transparent to remove doubts of any underhand dealing of NAB officials with the accused although NAB is only a recommending authority for the Accountability Court.

695. Induction of deputationists in the NAB or FIA should be curtailed as far as possible because they do not have any stakes as compared with the permanent or temporary employees of NAB. Efficiency is expected to be enhanced in case the NAB has its own staff strength and dependence on the deputationists is minimum.

696. To combat the problem of under-involving of imports, use of information technology should be introduced and its details will have to be worked out by the experts along with businessmen.

697. In order to ensure that the plea bargaining convict learn lessons of not repeating the similar crime in future, act as example for others the accused should be compulsorily sent for a week training in respect of leading a legitimate style of earning & living in an anti-corruption academy/center to be established in addition to other punishment already prescribed under the law.

698. There should be complete coordination amongst NAB, FIA & ACEs. A single case should be investigated by only one agency while assistance and expertise of other agencies may be sought.

699. The Ehtesab Commission should be established in all other provinces as in KPK to replace the ACE with additional manpower, authority, financial resources, professional management and independence.

700. Mian Shahbaz Sharif, Chief Minister of the Punjab, in a statement said that he is ready to face trial if he committed corruption of a single penny with reference to the Quaid-e-Azam Solar Pak Project. Such a clear and strong statement is hardly seen in the Pakistani system and should be welcomed and all other Chief Ministers, past & present, who should be asked or requested to make similar statement. In case non-receipt of their similar statement within a month or so, their names should be made public.

701. NAB is engaged in probing 300 high profile corruption cases which include cases against the former Prime Ministers Yousaf Raza Gillani, Raja Ashraf Pervez, Ch. Shujaat Hussain, Shaukat Tareen, etc. The recent progress of NAB is in any way substantial but as the value, nature and job itself are titanic and highly puzzling, its level of working will be required to attain a matching standard. The NAB is fighting no ordinary battle, probably as difficult as the Army’s war against terrorists.

702. Pakistan is ranked 134th amongst 143 countries in the world, according to the Global Innovation Index 2014. There is no international survey in respect of innovation methods in corruption. Had there been one, Pakistan is surely likely to be amongst the top in the world.

However the Transparency International or NAB should initiate and innovate this survey in respect of Pakistan and other countries.

116

703. Corruption in Pakistan is secretive, complex, intricate, inconceivable, sophisticated, complicated and monstrous, along with innovative techniques coming up every day. One institution of the level of NAB is probably not enough to match: either the country should have two institutions of the level of NAB or NAB should be tremendously strengthened to meet the vast corruption quantum as its workload is expected to substantially go up in the near future.

704. According to a report in the Daily “The News” 21-9-2105, the provincial watchdog, ACE, Punjab was facing staff shortage of 50% for years including 27 seats of Deputy Directors, 28 Assistant Directors & 8 Circle Officers, 5 Deputy Directors, 6 Assistant Directors (Technical) & 19 Assistant Directors (Legal). By end of August 2015, 111 complaints, 6231 inquires & 1448 cases were pending with over 800 registered against the bureaucrats. In such state of affairs, the battle against corruption already stands lost. There needs to be regular serious direction from the Chief Minister to quickly fill up the posts and speed up the enquires for necessary action with deadlines.

705. Every day, a new case of horrible corruption has been cropping up of the Sindh Government and bodies under its the control in the recent past. There should be strong commitment and support to NAB or FIA to deal with these cases of the Sindh Government.

706. Massive corruption has been detected in different departments of the Sindh Government especially in Sindh Building Control Authority and allotment of thousands of acres of land etc. involving sum of billions of rupees. To avoid such Sindh Mega Scandals, the internal system or the Standard Operating Procedures of the Sindh Government may be drastically revised and the power may be transferred to high powered committees which should include external experts in the relevant fields.

707. Pakistan’ anti-money laundering agencies should learn and start acting on the steps given in an excellent Word Bank book titled “Asset Recovery Handbook”.

708. The Senate Committee on Law, Justice & Human Rights made 51 recommendations to curb corruption in the Federal Government Departments. A separate body may be formed to ensure implementation of these proposals.

709. NAB / FIA / ACEs should hire external experts / technologists of the relevant subjects as their technical capacity in any case is limited and new such cases go on cropping up where external assistance is required.

710. All persons facing corruption charges or enquiries by NAB, FIA, ACE, CMIT, PMIC, and even at the department level involving amount of Rs. 10 million or more should be placed on the Exit Control List through an amendment in the relevant laws.

711. A national campaign against corruption must emphasize that the fight against corruption is a collective social responsibility and a common cause and we all are one together in this war.

712. Special security cover may be provided to the investigation officers of the corruption probing agencies where the corruption figure exceeds Rs 10 million. Similarly, service security is also equally important for them so that they could conduct enquires without fear of losing their jobs or suspension or transfer etc.

713. In order to enable NAB officials to withstand pressure from mighty corrupt the NAB has introduced a concept of Combined Investigation Team consisting of the investigation’ officers. The other anti-corruption agencies should also follow the NAB in this respect, which is a commendable step and should produce good results.

714. FIA should initiate enquires against all suspect cases of corruption and embezzlement, all the political leaders or bureaucrats etc. irrespective of their political status or affiliation or social status and without any distinction or fear and favor, as a matter of policy and enquiry proceedings should be initiated absolutely in accordance with the working system of the anticorruption body.

715. No high profile cases or others should be kept pending or suspended for not more than 6 months in any case by NAB or FIA as a matter of policy.

117

716. The NAB has recently devised Standard Operating Procedures to rationalize its workload with a maximum limit of 10 months for filing of the reference in the Accountability Courts.

Independent mechanism should be in place within the NAB to ensure strict implementation of SOPs on a regular or monthly basis, which will certainly improve its working efficiency.

717. The idiom “Prevention is better than Cure” should be made applicable in case of Pakistan’s anti-corruption strategy. It is better to stop a bad thing from happening than to fix the bad thing once it has happened. So the major focus should be to prevent the act of corruption from happening through variety of measures on both supply & demand side.

718. It is extremely puzzling and incomprehensible that the top bosses of the highly corrupt subordinates remain ignorant of their malpractices and making money right under their nose.

The top management should undergo a special training course titled, “System of Malpractices and Corruption in My Organization”.

719. Plea-bargaining method of NAB is criticized, as it does not send the corrupt accused to jail although the plundered money is returned. This method is acceptable because the economy desperately needs money where if the accused goes to jail, he will only add to the no of prisoners and there is already serious shortage of prison not prisoners in Pakistan. Jails in Pakistan are already jam packed due to extremely slow justice system and prisoners are being fed through the limited government resources. However, the NAB should release complete details of negotiations with the plea-bargaining accused or some neutral person should be present so that the doubts about the related NAB officials should be minimum and the accused should remain in the jail till the period the whole payment is not paid.

720. Having an anti-corruption brief in the Five Year Plan of the Planning Commission is an excellent development. However, it would be more appropriate that the Federal Government in consultation with the Provincial Government Ministries, Departments, Corporations, etc.

NAB, FIA, ACEs and Ehtesab Commission as well as the Chambers of Commerce & Industry, Cooperative Housing Societies & evil geniuses like Axact Chief etc. should formulate an exclusive Anti-corruption 5 Year Plan with such target like attaining score of 5.00 in the table of the Transparency International Corruption Perception Index at the end of the 5th Year. The task is highly complex and a new cabinet Minister of Anti-corruption should be able to formulate the Plan with implementation system, strategy and close monitoring.

721. The website of the Auditor General of Pakistan is unsatisfactory. It must show its achievements, misappropriated amount, recoveries and audit objections issued and accepted of the last 10 years etc., which will contribute in deterring corruption.

722. The NAB arrested a Grade-21 officer of the National Highways Authority in KPK for earning wealth of about Rs. 500 million. Such level of corruption cannot be committed without the convenience and cooperation of all colleagues upstream and downstream. In all similar cases the NAB must extend interrogations and investigations of all around such corrupt persons.

723. All the public representatives at the time of submitting in their Annual Wealth and Income Tax Statement, public servants of Grade 17 & above and members of all the Chambers of Commerce & Industry in their membership forms must give the following statement that they don’t have any bank accounts, other than those given in the statement, in their own name or any member of the family or servants or business account in Pakistan and in the banks in foreign countries through illegal or unauthorized means and they will never transfer funds abroad and if any stage this statement is proved to be wrong, the bank has the full legitimate right to freeze and transfer this account into government account.

724. A large No. of corruption cases have remained undecided or have been pending with NAB or FIA or ACEs for the last many years. It is extremely necessary that all these cases be either dropped where sufficient evidence is not available for any reason to move ahead. Keeping a case under investigation without any progress for years is not a solution to the problem. All such enquires and investigations should be filed with the condition if any fresh evidence is

118

available at any stage during the next 5 years, these cases will be reopened. Such measures will enable NAB / FIA / ACEs to concentrate all its efforts on other cases for better results instead of wasting energies on weak cases.

725. The FIA has recently proposed an amendment in its rules to register cases & arrest Grade 22 officers without permission of the Federal Anti-corruption Committee, which awaits approval of the Federal Interior Ministry, and so this amendment needs to be approved without any further delay.

726. It should be made mandatory to disclose the source & income with his address and occupation for all foreign funds transfer from foreign countries of over Rs 1.00 million. Nondisclosure of complete information source of foreign remittance should be punished.

727. The Pakistan’s institutions meant to check corruptions are not fully independent & captive in the hands of the mighty, moneyed & powerful people. How can these be made really independent depends upon the government? If the PML (N) wishes to really attach corruption effectively should openly invite recommendations from NAB, FIA etc. for their true freedom from the government.

728. An Advisor to the former Prime Minister allegedly received a huge amount of remittance of Rs. 700 million from abroad, which is obviously questionable, according to TV reports. The Advisor must be asked by the FBR to explain his position.

729. The starting point for across-the-board accountability should be through thorough scrutiny of all assets and liabilities and tax payments of the last 10 years of all politicians, high ranking civil & other officials, private businessmen and industrialists, etc. by an independent body to be specially established for this purpose.

730. A new law may be enacted which allows confiscation of assets by the Government Officials created from illegal or corrupt practices or through undisclosed sources or tax evaded money.

731. We should enact a new legislation, which should do away with secrecy & immunity and allow obtaining of any information under a new clause under the Freedom of Information Act. 732. To curb financial terrorism, a law should be enacted to allow death sentence to the convict of proven corruption of Rs 100 million and above as is given in Iran.

733. The Government may establish an Enquiry Commission to probe the question of inordinate delay and poor conviction rate in the corruption cases so that alternative strategy and measures could be considered. It is very common to hear the corrupt leaders & bureaucrats saying that “not a single case has been proved in the court of law”. The issue is of critical importance if the war against corruption has to be won.

734. The officials of the NAB / FIA have to interrogate VIPs like Chairman Group of Industries, former Prime Ministers, Federal or Provincial Ministers, Chairmen of Corporations etc. who come fully prepared and briefed by the country’s top most lawyers in respect of how to loot this poor nation in a masterpiece manner. So these officials have to be very bold, highly educated, fully informed of the subject / case, with clean and spotless career record etc.

Finding and recruitment of such people in this country is a very difficult assignment.

Recruitment through press ads may be of some help in these cases.

735. No estimate is available regarding the total no. of personnel available in about 15 anticorruption institutions at both the federal & provincial levels. Pakistan is amongst the top corrupt countries in the world. Each year, Pakistan has 3.75 additional population, and with rising government expenditure, both development and non-development, every year, the chances and opportunities of corruption also rise. So the opportunities of corruption, irregularities, misuse of authority, etc. are expected to grow in the coming years. With the existing no. of personnel involved in corruption detection, prevention & investigation, already inadequate, there is strong need to raise the staff strength of these institutions by at least 25% per annum. This will greatly help in coping with the backlog and the drive against corruption will raise conviction rate.

119

736. The accountability drive must be across-the-board without any distinction covering all sectors of the economy, all the federal & provincial governments, past & present, and in accordance with the Constitution & the law and the anti-graft agencies must get full moral, legal, financial and physical support from the government. There is no doubt that proving white-collar crime in a court of law and in Pakistan particularly is a herculean task as the corrupt is a big crook and intelligent.

737. A system of on-line filing Corruption FIRs with NAB, FIA, ACEs, CMIT, PMIC, Ehtesab Commission etc. may be introduced for their investigation and further necessary action.

738. In an article in the Daily “The News” 29-9-2015, Dr. A.Q. Khan says; “It took six months before I received my first salary Rs. 3000. I did not ask for or accept a single yard of land or any other favor. The technology, I gave to Pakistan free of cost was worth billions of dollars.

Money was not the motivation, patriotism was.” One rarely sees such paragraphs in Pakistani newspapers. Dr. A.Q. Khan should be made a symbol for young men, politicians, public servants, and businessmen etc. through massive ads & publicity by the government and NGOs. He should be declared an INCORRUPTIBLE PERSONALITY OF PAKISTAN straightway as he is a SYMBOL of HONESTY and INTEGRITY. 739. There is no doubt that greed for wealth or to get rich has no limit but for persons of high integrity and education, there should be some limit. In Pakistan, there is no difference between a highly educated person and illiterate in this respect. NAB should opt for plea bargain in both cases to get back billions of rupees to enrich this debt–ridden nation.

740. All the anti-corruption institutions in the country – NAB, FIA and ACEsCEs- should formulate a Corruption Crackdown Plan for implementation, phase-wise & department-wise, and invite public complaints through ads in the press and sms etc.

741. Extent of corruption in Pakistan can be gauged from the fact that a university in Lahore held convocation and provided UK university degree to students without getting its accreditation from both councils. These are currently over 12,500 students in the COMSAT, Lahore Campus, in various undergraduate programs and all these students got admission with the hope of getting dual degree (Daily “The News” 28-9-2015). A public awareness campaign by HEC is required to avoid such mishaps in future.

742. The Prime Minister’s Inspection Commission remains inactive during the term of the present PML (N) Government as it appeared in the case of the PPP government. The Commission does not have suo motto power to investigate any issue & has to relay on the P.M direction. It is necessary to give it powers to undertake any enquiry on its own to check corruption and malpractices and investigate & improve efficiency and transparence in government departments. Let every available anti-corruption body play its role to its level best.

743. According to a report in the newspapers, the corruption cases are not pursued or forwarded to the court deliberately in connivance with the investigation team’s officers of the anticorruption agencies. This is a highly disturbing matter and serious problem. Any case, which is delayed beyond the prescribed period or dropped at the initial stage for any reason, should be transferred to another team as a matter of policy of the organization. Some cases have been pending for as long as 10-15 years, because of personal gains or careless attitude and collusion with the accused persons.

744. Professional investigation skills of the staff in NAB, FIA and ACEs must be enhanced through training and supply of reports/materials on the subject from international anti-graft organizations.

745. A lot of literature is available on the net on the corruption investigation techniques & ways.

All the concerned staff in NAB, FIA, & ACEs may be provided copies of the relevant materials, articles and publications in a book form to be placed on their office tables for their daily reading.

746. There should be an independent cell within NAB, FIA, and ACEs with the assignment to keep daily watch over the progress of investigation of cases and report to the Chairman / DG.

120

747. The salary structure of the investigation staff in the anti-corruption agencies should be much higher than the Basic Pay Scales of the Government employees to resist the bribe temptation offered by the corrupt facing enquires.

748. If considered necessary, the required funding should be made available to NAB / FIA / ACEs to set up more divisional or regional offices at different places to speed up investigations in whole of the country.

749. White-collar crimes are financially motivated crimes committed by businessmen and government officials. White collar criminals rarely go to prison. Their crimes largely go undetected unprosecuted & unpunished. In this scenario, how could Pakistan’s agencies improve their performance? The staff of the NAB / FIA / ACEs will have to be professionally trained, guided and educated in this field to meet the extraordinary tough & varied assignments. It is increasingly becoming difficult to get conviction order from the court, even for a person with notorious reputation because of the highly sophisticated and unique techniques of corruption applied by him. The match is very tough and appears to be one sided between the corrupt & corrupt catching agency in Pakistan. So it is extremely important that the anticorruption organizations should sit together and design new ways and techniques so that the equally strong teams play the match.

750. Anti-corruption cycle consists of prevention – detection – investigation – case preparation.

Each of these steps needs to be strengthened with the support of the government, its agencies and the courts. Comprehensive strategies with their execution plans for each stage should be separately prepared by each anti-corruption agency in the country.

751. Pakistan needs emergency rescue service like 1122 in its fight against corruption. This service will provide extra legal inputs and professional and technical expertise in the specific corruption case which the probing agency is finding difficulties in its investigation and prosecution process on a case-to-case basis. This proposal requires detailed analysis. A system must exist within each anti-corruption agency to hire professional help from outside sources as and when required bases.

752. The NAB / FIA / ACEs / AGP / Ehtasab Commission etc. may invite / sponsor articles / briefs / information from the corrupt through a specially designed secret system disclosing how the corrupt make money by subverting the prescribed standing procedures of the department. Availability of such crucial and pivotal inside information will help in raising the standard of investigations, building up the prosecution case and then court conviction. The agencies should accordingly revise their anti-corruption policies.

753. All anti-corruption establishments in Pakistan should set up research cells in their organizations with the objective to undertake studies to understand mechanism of corruption existing in each office, sub-office, department, corporation, etc. and accordingly recommend steps & measures to reduce or contain or eliminate corruption or misuse of authority on a regular basis.

754. The government may direct every major government or semi-government, department, or office to set up its own watchdog within the institution. The existence of a watchdog will certainly contribute to minimizing corrupt practices in the organization.

755. The successful contractor may be asked to pay “Anti-Corruption Surcharge” of 1.0% of the contract cost which will certainly help create a kind of consciousness against corruption in those who make illegal payments to get favor. This funding will also help meet the increasing financial requirements of the anti-corruption agencies.

756. The NAB / FIA should undertake an internal study to examine the reasons of delay in court judgments as well as low conviction rate so that the remedial measures could be taken.

757. There is a strong demand for across-the-board accountability and there can be no dispute about this demand. But, if there is lacking in a cross-the-board accountability, it does not mean the selective process of accountability should not go on. In this country, something is still

121

better than nothing on this front. However, the goal of across- the-board accountability must be pursued including political leadership.

758. In a country where all the Governance Indicators are amongst the lowest in the world, it is not expected that one institution NAB, to work fairly and honestly without any kind of discrimination. NAB is a part of Pakistan’s system and extraordinary wonders should not be expected from one body out of over one thousand organizations. However, special attention is required to make it an ideal organization in Pakistan. A new body with another name will hardly make any difference in view of its extra critical role. No one institution is expected to do exceptionally well or do wonders in an otherwise rotten system. Whatever NAB or FIA or ACE has done or is doing should be considered enough and understandable in the Pakistan’s political, legal, economic and social system. However, some form of competition should be developed among all the agencies for better performance.

759. The corrupt in Pakistan employ highly sophisticated complicated, novel, unfamiliar and unprecedented techniques & ways and it becomes nearly impossible to solve and punish them in many cases. The anti-corruption bodies are facing highly challenging assignment which require counter evil brains. So appointments in such places should be made through open publicized merit, test prepared by some highly talented and knowledgeable persons & interviews conducted by a team of experts / specialists in different disciplines.

760. The corruption or misuse of authority cases are taking years for final judgment. In fact, in some cases witnesses are dead. In view of this inordinate delay, it is extremely important that both the government & the agencies take all the possible steps to expedite the process of court proceedings for final judgment by increasing the no. of judges and investigators.

761. Against an owner of the Formanites Housing Society, Lahore, over 1100 persons filed complaints with NAB, Lahore, for cheating & selling hundreds of plots, which never existed.

(Daily “The News” 9-10-2015). Such amazing, astounding, dazzling deception and swindling can only be avoided or curtailed through massive education drive by FIA, and ACEs in the print and electronic media.

762. With the support of the government, NAB and foreign donors, an NGO may be established with the exclusive assignment of fighting corruption such as undertaking research in prevention, procedures, law amendments, investigation techniques etc.

763. The judicial accountability system may better be energized and its independent enquiry system may continue with better efficiency.

764. Cases of civil servants and political leaders are reported in the press and till the end of the cases in the courts. So the cases of others should get similar reporting in the print & electronic media from the start till the end.

765. A sitting senator, for example, can’t be arrested for interrogation by NAB without the permission of the Chairman Senate. In order to be just & fair for all, it is certainly an unfair requirement. The relevant law should be amended to allow the investigation agency to arrest a senator or MNA facing allegation of corruption even if he or she is living in the MNA / MPA hostel.

766. In Pakistan, every corruption enquiry initiated against the opposition leaders is termed as witch hunts and biased. Such an approach shows lack of sincerity towards the goal of corruption eradication of the political leaders who should be educated to accept the fact that such steps even against opposition leaders are still worth and be appreciated rather than condemned as such support discourages those engaged in corruption drive.

767. There should be independent external auditors to conduct audit of all NGOs in the country to eliminate linkage with the proceeds of corruption, crimes, money laundering and suspicious transactions.

768. The NAB of Khyber Pakhtunkhwa recently unearthed a case where a bank branch management opened an account with the title of Secretary, Labor Department, without obtaining his approval where huge deposits of Rs 2.29 billion were made in the name of the

122

Secretary, Labor, by the Workers Welfare Fund which were later on withdrawn by the accused including the top management of the Workers Welfare Fund. This is certainly an innovative technique and to prevent new and novel ways, necessary amendments are required in the Government procedures to prevent such frauds.

769. A new research book with the title “Innovative Ways of Corruption” may be sponsored based on actual experience of Pakistan and other countries by NAB. 770. The regulatory authorities like NEPRA, PTA & OGRA should be made independent and strengthened in order to provide due check & balance in their own areas of corruption. The Federal Government should seek their recommendations in this connection or should set up a commission for this purpose.

771. The struggle against corruption is extremely huge & it can’t be won with the effort of one man or one institution. This struggle has to be made a struggle of every one and it is of course like asking for the moon, but nevertheless, it will have to be ultimately fought tooth and nail till the end by seeking cooperation of both the honest and the corrupt through innovative skills, teaching, incentives and threats.

772. The Federal Government has recently enhanced the powers of the FIA Anti-terrorism Wing, which will enable it to investigate cases of terrorism, money laundering and cybercrime, which is a commendable step. It is, therefore, necessary that the FIA is energized so that it can effectively make use of its newly – enhanced powers to curb corruption and untaxed money which is sent abroad illegally through Hundi, boats, bags, air travel etc.

773. The country needs an Anti- Corruption Coup and not a Military Coup to be planned by a Joint Planning Team of all the anti-corruption related agencies as well as hundreds of institutions, departments and offices.

774. The corruption rate conviction as a whole in the court record is grim and unsatisfactory because of the poor or deliberate poor presentation of the cases before the courts and prolonging the proceedings through delaying tactics of the accused etc. A quick justice system in corruption cases has to be evolved.

775. Due to some unclear jurisdiction, the NAB & FIA Acts should be reviewed to clear ambiguities and ensure better working of the two bodies.

776. Both the NAB & FIA both have been criticized for being selective in their accountability drive not only in respect of selection of the politician and civil servants but also provinces.

The perception or allegation needs to be cleared or necessary steps may be made for nondiscriminatory actions.

777. There is a corruption formula as under: Discretionary Powers – Accountability = Corruption.

The equation has been proposed by an international anti-corruption guru, Robert Keit Gaard.

So if we have to reduce or control corruption, we shall have to reduce discretionary powers and enhance accountability simultaneously without affecting efficiency of the organization.

Each institution, body or department will have to undertake in house special studies of their corruption prone offices or sub-offices etc. to meet the corruption control objective keeping in view the above formula.

778. A Constitutional Amendment may be made to ban all those who hold accounts in foreign countries or have offshore companies from contesting elections or holding government posts.

779. All copies of land / house / sale / transfer record transaction may be compulsorily provided to the FIA / FBR / NAB for scrutiny of the both buyers & sellers.

780. All Chiefs and Heads of Departments in NAB / FIA / ACEs / Ehtesab Commission must have fixed tenure who can only be removed through a detailed enquiry headed by the Judges of the High or Supreme Court.

123

781. The FBR should study and learn from the Indonesian Tax Amnesty Scheme experience with 7, 45,000 taxpayers declaring more than $ 330 billion assets.

782. Money laundering estimates differ in case of Pakistan. However, the amount is estimated at $ 10 billion per annum by the US State Department, which is a huge sum for a poor developing economy of Pakistan. This issue is of critical significance for the country and all the top Government and private sector bodies should form a commission to deliberate issue and suggest measures to contain the outflows.

783. The Custom Department will have to be significantly upgraded computerized, energized and made ethically high to check foreign trade malpractices and intricacies.

784. How to end collusion of corrupt politicians & civil servants as in Sindh is a major objective to be pursued. Civil servants need to be provided service guarantee through amendment in service rules operation so that they are in a position to take stand against illegal orders.

785. Each government department, office, unit etc., should introduce a maximum period for providing the required certificate or approval and place item-wise schedule on the boards of the office for open view as well as in its website.

786. A leading newspaper or TV channel may be requested to locate corrupt and publish a weekly article titled “Confessions of a Corrupt” which will enable the anti-graft institution to better understand the mind & techniques employed by the corrupt for developing anti-corruption measures.

787. The Public Accounts,Committee of the National Assembly is a major body for accountability and transparency of expenditure in the Federal Ministries and it is extremely important that the Committee must function effectively & impartially. When the Auditor General submits his report for any particular year, the Committee’s Chairman should not act or step down for some time as he should not belong to that party for that year when that party has remained in power. For example, Syed Khursheed Ahmed should not preside over the meeting when the accounts relating to the period of PPP are under discussion. An attendance of such a meeting will reveal how important it is as a part of the anti-corruption drive.

788. It has been suggested that there should be a body over NAB to oversee its operation. The suggestion is not viable because then there should be another body over this super NAB. The better course will be that the proposed newly created Ministry of Anti-corruption should watch its conduct with clearly defined goals such as across-the-board accountability objective and its performance etc.

789. The NAB has categorized cases of corruption as general, complex & mega in accordance with the level of corruption involved. It is suggested that the NAB investigation team personnel may also be accordingly categorized for dealing with the different levels of corruption so that a spirit of competition is developed amongst them for promotion and efficiency.

790. The Election Commission of Pakistan has set up a Political Finance Wing (PFW) to probe into the assets & liabilities and expenditure and income statements of the Members of Parliament as well as of the political parties. The wing well have to be made substantially strong to withstand pressures of the top elite of the country to produce results along with obtaining highly experienced professional services.

791. A book with the title “How to Serve with Honor:A Textbook against Corruption.”especially focused on the civil services may be written and published for wide distribution to all the office/sub-offices of the Government.

792. The Federal Ministry of Religious Affairs should specially design a plan to vigorously involve the Khateebs of all the mosques in the country to deliver regular sermons against corruption and other malpractices.

793. Corruption exits within the anti-corruption agencies in the country because the root cause of corruption exists in the human nature with a few exceptions and anti-corruption offices are no

124

exceptions. A Textbook Guide for the anti-corruption agencies staff members may be published on this subject for their guidance.

794. There is a strong need to vigorously pursue all corruption cases pending in the Swiss Courts or in foreign countries of Pakistan’s political leaders. A direction from the Supreme Court to the NAB is required.

795. Tax Companies are opened in tax heavens like British Virgin Island to stash illegal money.

How should the Government get this secret information and the money deposited be returned to Pakistan Government? The assignment is extremely difficult and a separate commission is required to suggest specific measures for retrieval of this money.

796. A Morality Development Day many be annually observed for development of morality in the minds of the political leaders, bureaucrats, businessmen, traders, teachers, students etc.

797. The Pakistan Telecommunication Authority may make it compulsory for all the mobile cos. to include a short message against corruption for all outgoing and incoming calls etc.

798. On the pattern of India, there is a strong need to establish an Association for Democratic Reforms which will continuously undertake research, compile record and publish in the press media, political, professional, education and financial status and backgrounds of all the candidates contesting elections for the seat in the Senate, National or Provincial Assemblies.

799. The sale of the party tickets for contesting elections must be completely banned by forcing top political parties leaderships to commit on the Holy Quran that they will not sell party tickets, directly indirectly, in any manner whatsoever, under any circumstances through addition in the Elections Rules & Regulations.

800. Corruption is considered to be significantly lower in parliamentary system as compared with the presidential form, which requires that the Pakistan’s parliamentary system should continue and be strengthed with the non-rigged regular elections.

801. An International Survey of Control of Corruption and Tax Revenues shows that there is an association between the capacity to control corruption and tax revenues as a percentage of GDP. We shall have to attack high priority to both factors – control of corruption and tax revenues raise to improve the ratio.

802. Per capita budget of anti-corruption agencies in Hong Kong, Australia & Singapore were $ 12.32,2.00 and 1.71 respectively in 2005. If we assumes $10 per capita for Pakistan, the allocation for NAB should go up to $2000 million or Rs. 200000 million as against the current budget of around Rs. 3000-3500 million or more if the struggle against corruption has to be seriously made.

803. FBR officials enjoy discretionary powers to raid the business premises and freezing of bank accounts which the business community thinks that the recovered amount does not go to FBR but into the pockets of FBR officials. To prevent this kind of practice, a joint team of FBR & NAB should raid the suspect places.

804. Following Ps-politicians, police, press, public servants, and poor- are amongst the top corrupt of Pakistan and so for each P separate remedial strategy will be required.

805. There is a strong need to introduce a campaign “Refuse Envelopes in Pakistan” by the associations of Journalists, editors, media owners & PEMRA etc.

The subject of Corruption Investigation may be designed and introduced in the Journalism classes of graduation or post-graduation to promote corruption conviction rate in Pakistan.

806. Pakistan Federal Union of Journalists should open offices in all big cities where members of the public can directly report cases of corruption to the media for further investigation and submission to the police / courts while keeping their names secret.

807. An independent Radio Station may be launched by some NGO to relate issues of corruption and undertake public awareness campaign against corruption.

808. The world is estimated to have above 100 Tax Havens & Heavens. A special commission consisting of experts of FIA/NAB/FBR/State Banks of Pakistan should visit these places for

125

consultations with their concerned ministries for formulating ways of controlling the outflows from Pakistan.

809. FIA has a status of an attachment department directly under the control of the Federal Ministry of Interior with political appointees. The FIA needs to be completely independent and top appointments be made through consensus of the ruling and opposition parties leaders in the National Assembly.

810. Services of such super corrupt persons like Mushtaq Raisani should be hired by NAB/FIA to write a book on money making evil and corrupt practices as a guide for wide publicity and enhancement of knowledge and techniques of the subject.

811. A major lesson of the Panama Leaks is that there is a strong linkage between power & greed as these leaks include a large No. of political personalities from many countries including Pakistan. There is a strong need to introduce a chapter on Money Laundering in the High Schools Textbook.

812. One week compulsory course on the subject of Greed may be held for all the Cabinet Ministers / Ministers of State, Advisors and Special Assistants of all the Federal & Provincial Governments.

813. The NAB should sponsor a research study titled Dubai Leaks to identify investments made

by Pakistanis in Dubai, mode and means of the investment made or transfer of their wealth and income and recommend necessary means for stopping future outflow of funds to Dubai.

814. An Anti-Corruption Case Management developed by the Punjab Information Technology Board has been introduced in the Anti-Corruption Establishment, Punjab, which is a way for improving the efficiency of the organization. Similar system may be introduced in Sindh, KPK & Baluchistan.

815. According to a study titled “Taxation by Misrepresentation” by the Centre for Investigation Reporting in Pakistan (2013), out of 1070 lawmakers in the National and Provincial assemblies in the 2013 elections, 47% did not pay tax and 12% do not have National Tax No. including PML(N)’s 54 MNAs & PTI’s 19. In another study “Representation without Taxation”, CIRP Report unmasked tax evasion in Parliament (2012). In both Houses of Parliament, National Assembly, and Senate, there were 446 law makers and 300 of them turned out to be tax dodgers. It is, therefore, imperative that the Election Commission to take the bold initiative to disqualify them through amendments in elections laws for future.

816. The FIA should publicly provide its update on its website regarding its performance on monthly basis for improving its efficiency.

817. The Auditor General of Pakistan Report annually detects irregularities of billions of rupees but recoveries are estimated to be not significant for which necessary measures need to be undertaken.

818. There are over 100 TV channel in Pakistan, and at least one channel should introduce an annual award called “Integrity Idols” for showing honesty in different sectors.

819. 63 % of Pakistan’s population is under the age of 25. These young people may be mobilized to lead the battle against corruption.

820. Some NGO should publish an Annual Top 100 Whistleblowers in honor of those persons who unearth true corruption, illegalities, wrongdoings or frauds by public or private individuals, which will help create a climate of competition and encouragement to fight corruption.

821. The new Chief Justice of the Lahore High Court has taken admirable measures against corrupt judges. Similar steps may be undertaken by the High Court of other provinces.

822. Detailed audit of the Cos. selected by the FBR must be conducted by a Joint Investigation Team of the officials of the FBR, NAB and Chartered Accountants to avoid wrong assessment and penalty on private sector.

823. Employees are equally corrupt in the private sector subject to availability of opportunities, according to our surveys. This is an issue for the each private co. to deal with it. It is, however,

126

recommended that a regular morality session be held on monthly basis for their moral boosting.

824. True stories of corruption refusal or acceptance of the political leaders, businessmen and bureaucrats may be publicized through media.

825. Pakistan should host an international summit in Islamabad on anti-corruption by inviting anti-corruption gurus from top 10 corruption clean & 10 most corrupt countries as per CPI ranking.

826. Corruption cases of Rs. 10 million or more may be tried in Special Military Courts as cases of Financial Terrorism. Courts take years to decide cases.Lawyers frequently go on strikes for different reasons and seek adjournments. In 2014, they attended courts for only 150 days in the whole year.

827. Utility bills, fees of children and foreign visits should be thoroughly checked in order to assess the expenses level of the civil servants, political leaders and businessmen as well as their income tax returns etc.

828. There is a requirement if you wish to construct a house or a commercial buildings, its map has to be approved by the local authorities. You can’t obtain its approval unless you grease the palm of the officials, otherwise the objections will go on and will force you to pay and get the approval to start construction work. How to reduce or eliminate of corruption is a great challenge? An independent watchdog should provide recommendations in each case.

829. Owning any offshore company by a Pakistani, whether declared in the income or wealth statement or not, is an immoral and unpatriotic act and should be declared as an illegal act in future, through amendment in the relevant acts. A country like Pakistan cannot afford its citizens to keep their money in offshore companies.

830. It is commonly observed that the individuals / companies fail to cooperate with NAB / FIA / FBR for providing them the desired information for their alleged wrong acts. There is need to amend the relevant acts of these bodies to ensure their replies are received within the stipulated period through imposing penalties etc.

831. Even in private housing companies or cooperative schemes, the elected representatives find ways to make money, for instance, by declaring / converting plots reserved for housing purpose into commercial property etc. The very fact they run their campaign by spending money and so their major objective appears in most cases to make extra money to compensate for the spendings made. Such practices should be banned by amending the relevant Act. 832. The FBR is facing a gigantic challenge in Pakistan which is comparable to NAB or FIA. Its scope of operation will have to be expanded through recruitment of highly talented manpower from the private sector of spotless integrity and capability to produce the desired results.

833. In Pakistan the following bodies / institutions are operating regarding corruption detection, control, prevention and conviction:1.Internal Audit 2.External Audit 3.Anti-corruption Establishment of the Provinces 4.Auditor General of Pakistan 5.Chief Minister’s Inspection Team 6.Prime Minster Inspection Commission 7.Federal Investigation Agency FIA 8.National Accountability Bureau NAB 9.Public Accounts Committee of the National Assembly & Provincial Assemblies and Senate.

834. The top bureaucrats are sometimes transferred if they refuse to follow the illegal orders of the Ministers etc. It is not possible to stop such transfers anyhow but they should be given the right to give opinion/objection in writing for onward submission to the CM/PM.

127

835. NAB/FIA should be totally independent. These organizations should set a Joint Investigation Team, which should hold a separate joint session annually to discuss experience, ways and means of coordination and control of corruption practices in Pakistan etc.

836. There are almost 32 Standing Committees of the National Assembly for the different subjects / sectors such as Petroleum and Natural Resources, Industries and Production. It is suggested that each committee should have a wing / section exclusively dealing with the corruption & malpractices cases in its sphere with an e-complaint box / suggestions system for necessary action. All these committees need to be energized vis-a-vis corruption opportunities control, prevention and prosecution etc. Each Committee’ website should be so designed to include its performance and achievements relating to the subject of corruption exclusively of the last 5-10 years.

837. A religious decree or “FATWAH” should be sought from the Islamic Scholars or the Islamic Ideology Council which may declare transfer of funds illegally, secretly or through any unofficial channel to foreign countries from Pakistan as “HARAM” which will certainly decline such transfers.

838. Concealment of income, manipulation of accounts or evasion or avoidance of tax dues etc. should be declared as “HARAM” through another “FATWA” from the Islamic scholars.

839. Like any other subject such as English, Urdu, Political Science or Economics, there is a strong need to introduce a new subject “Anti-Corruption” at the graduation level in all universities of the country with courses and syllabus designed by retired or serving officers of NAB, FIA, FBR, ACEs, Ombudsmen, PMIT, CMITs, A.G.P etc. plus a few convicted corrupt & fraudsters etc.

840. A very comprehensive Performa should be designed by the Election Commission of Pakistan titled “Election Expenses”, date-wise, activity-wise, place-wise and any other campaign related activities with photos of all public meetings held, to be filled up for close scrutiny/checking by the ECP which will reduce the element of providing wrong information about election expenses.

841. Many organizations don’t have permanent heads and are being run by temporary and ad-hoc arrangements which reduce efficiency and promote culture of corruption and so all the federal and provisional governments should fill up all such posts on priority basis as one step forward towards corruption eradication drive.

842. A book of true short stories / essays / research studies may be undertaken from “Hero to Zero” of top corrupt persons of Pakistan which may be published for wide distribution to act as horrible examples and lessons for others.

843. It would be appropriate that some NGO should encourage retired civil servants to write their memoirs for book publication or anonymous articles to expose the corrupt politicians.

844. In all corruption infected offices of the country, a horrible and miserable photograph of life in a prison of a corrupt, handcuffed behind steel bars in a jail room, lying on a simple floor along with several prisoners & eating poor food should be installed to act as a deterrent and awful for all others.

845. It is surprising that the world’s top corruption clean countries like Switzerland & Luxembourg are also notorious tax & secrecy heavens while the African nations are amongst the most corrupt nations but they are also amongst the greatest victims of heaven facilitated looting. The powerful countries like USA & UK are themselves major tax shelters. Pakistan should become a tax heaven for looters of nationals of foreign countries for its speedy growth 846. A Financial Secrecy Index has been developed which ranks nations on the basis of tax heaven or secrecy. The top ten countries are; Switzerland, Hong Kong, USA, Singapore, Cayman Island, Luxembourg, Lebanon, Germany, Bahrain & UAE while Panama’s position is 13th. Pakistan has not been ranked in this Index for the simple reason that it is not a safe country for hiding wealth because of terrorism and other reasons. A study of these heavens is

128

required to understand the system for Pakistan to take remedial measures for formulating our counter policies to restrict or stop the outflow.

847. The NAB should order a very comprehensive inquiry into the heavy payments released to the Independent Power Producers by both the PPP and PML (N) Governments as there appears irregularities. (Daily “Duniya 4-05-2016”).

848. Some politicians who should have corruption clean record should launch a political party with the title of “Pakistan Anti-Corruption Tehreek” with a major objective of elimination /containing corruption in the country. This party is expected to receive positive response from the people.

849. A Black Book in both English and Urdu should be published & uploaded on the net containing details of all the major convicted corrupt bureaucrats & political leaders as well as private crooks of the last ten years and their corruption mechanism / techniques with amount embezzled or looted etc.

850. The ethical/ honesty standards of Pakistan vis-à-vis Japanese can be judged from a report that in Tokyo 74% of the lost amount, $ 32.5 million, was returned to the owners as against less than 1% in case of the Sunday Bazaar in Peshawar. (Daily “The News “27-02-2017).

There is imperative need for moral education, teaching and guidance starting from home and then school and college as per experience of the Japanese, JICA may be asked to send their morality experts to Pakistan for policy making. We shall have to change the education priority. It is equally important to make a person honest as well as knowledgeable.

851. The Government may declare “Anti-Corruption Emergency” in the country by which it can suspend, change functions of the executives, warn citizens to change and reform their behavior and suspend fundamental rights for a limited period for corrupt persons for the only specific purpose of trying and punishing financial criminals through a speedy judicial system etc.

852. The NAB should undertake an international research study to identify top 100 Pakistanis who have Offshore Accounts or investments made in foreign countries and make their names public and shame, ostracize and discredit them through the electronic and print media.

853. The Annual Audit Report of the Auditor General of Pakistan should be uploaded on the website and the public may be asked to understand the malpractices committed by the officials and make their contributions towards the audit objections in resolving them either way. The objections although not necessarily corruption, which involve billions of rupees, covering a period of 5-10 years, should be seriously examined by an independent body, to assist the Public Accounts Committee in settling the objections and punishing the culprits.

854. There is a saying in China, which says “hell the chicken to frighten the monkey” which means punishing someone can serve as warning for others. So the Government and NAB must seriously follow the above anti-corruption maxim and ensure their speedy punishment.

855. It would be appropriate for NAB to pursue & concentrate on large scale monetary and mega corruption cases where there are possibilities of recovery of huge amount through plea bargaining and voluntary return rather than boggling itself down in small level cases and thus wasting and underutilizing its limited resources.

856. Seven countries- Australia, Colombia, Ireland, South Africa, New Zealand, France & some provinces of Canada- have signed an order called Unexplained Wealth Order (UWO) which is an order requiring a person to surrender to the State the amount of unexplained wealth of the person. Pakistan should immediately sign / adopt this order.

857. It is estimated that Pakistanis have $150 billion in offshore companies as per Panama Leaks.

The figure is obviously mind boggling for a poor country like Pakistan with one of the lowest per capita income in the world, high level of concentration of wealth in a few hands and seriously low level of morality. To stop flow of such money laundering into safe heavens, a highly skilled committee may be formed to recommend appropriate measures.

129

858. All those about 400 or more Pakistanis mentioned in the Panama Leaks may be asked to return their money into Pakistan with no question asked or enquiry for investment in Pakistan in different sectors of the economy.

859. Pakistan should host an international summit on anti-corruption by inviting anti-corruption gurus in Islamabad from top 10 corruption clean & 10 most corrupt countries as per CPI ranking.

860. Panama Leaks are expected to assist the Federal Board of Revenue to bring into the tax net or get tax raise for all those named in the Panama Leaks in accordance with their wealth/income revelations. The FBR must concentrate all its efforts on these Pakistani Panamanians to raise revenues for the country.

861. A campaign needs to be launched in the women’s colleges and universities aiming at guiding students to refuse to marry corrupt or a person with corruption reputation, although it is a very difficult objective as the girl’s marriage is already a serious issue in the country because of heavy unemployment of men of marriageable age.

862. An Anti-corruption Guide may be published by each Federal & Provincial Ministry for its employees for guidance and implementation in letter & spirit and it may be revised every year in accordance with the experience gained during the year.

863. A NAB Team was thrashed and confined in Hyderabad while it tried to arrest a big tax cheat. It shows that the how difficult and dangerous assignment that the NAB is facing. It is, therefore, necessary that a security cover of Pakistan Army, Rangers or Police is provided during every similar raid and some law may be enacted for this purpose.

864. A Monthly Morality Advice may be emailed to all the employees of the Federal & Provincial Governments and their subordinate offices by NAB. 865. Make the purchase of property / land / plots / business nearly impossible or extremely difficult through illegal / corrupt money as the purchaser will have to provide evidence of legitimate source of income for buying the said assets through his Wealth Statement and / or Income Tax Return, Bank Statement or from foreign remittance through the banking channel etc.

866. A big campaign may be launched by the FBR / SBP through the print and electronic media for a considerable period appealing the Hundi Mafia to stop the practice of funds transfer for the sake of the country or some incentives may be provided to the hawala community in Pakistan.

867. After intensive research, we have identified the following places / areas where the illegal wealth, corrupt money and tax-evaded funds etc. are invested, kept, hidden whitened and money laundered etc.

LIST OF PLACES OF HIDING ILLEGAL WEALTH 1.Prize Bonds 2.Stock Exchange 3.National Saving Centers 4.Benami Bank Accounts 5.Foreign Currency Accounts 6.Transfer of Funds to and from abroad through Hundi 7.Foreign Remittance through official channels 8.Bank Lockers 9.Bags or Boxes in Homes / Residences 10. Bonnets of Cars / Vans 11.Purchase of Plots / Property in different Housing Societies in Pakistan.

12.Almirahs of the Homes 13. Bank Accounts in Foreign Countries in your name or other’s names

130

14.Investment in Foreign Countries 15.Settling up Offshore Companies 16.Under Invoicing of Imports 17.Over invoicing of exports 18.Purchase of Plots / Property in Foreign Countries 19.Special Holes / Spaces dug out during reconstruction or constructed in Residences 20.A Residence / House without any record, complete or incomplete.

21.Water Tanks 22.Smuggling money outside Pakistan through boats, special messengers, model girls, VIPs etc.

23.Travelling abroad with money hidden inside your body / bags by Air. 24.Hidden at selected places of the porous passes along Pakistan – Afghanistan Border.

25.Keeping kickbacks obtained from international bidding in foreign countries.

26.Under the beds and inside the sofa sets.

27.Cash placed in the family or friends’ homes.

28. Illegal / unauthorized opening of the Bank Accounts of others without their consent.

29.Deserted or locked Houses of your near & dear ones.

30.Cash kept in your mills/factories or business shops.

31.Receipts of gifts in different forms from in-laws or near relations.

32.Showing inheritance income/asset may be at reduced rates or market rates as may be required.

33.Gold or Jewelry kept in Bank lockers or homes.

34.Funds transferred to a self-made Charity or Trust.

35.Under a drawer, behind the clocks, inside the doors, under your mattress, ironing board or inside the cemented walls etc.

36.Making transfer of funds from Pakistan to foreign countries and then bringing it back through multiple jurisdiction or multi layered companies of a highly complicated system beyond comprehension of even of chartered accountants and financial wizards etc.

37.Underneath the swimming pools.

38.Avoid using your own name in ownership of assets.

39.Cash suit cases dumped in garbage.

40.Cash/Jewelry dug in the garden or backyard.

41.Homes of the in-laws and the nearest near and dear ones as well as close friends 42.Gifting property assets to children & parents etc.

43.Having front men / agents and then awarding those contracts or favors.

44.Forming trust for social cause with their children as beneficiaries/trusties.

45.Purchase of precious metals like gold, diamonds and platinum.

46.Opening fake accounts without knowledge of the concerned persons.

47.Showing cash income received from a jeweler for sale of your inherited gold or jewelry or diamonds etc.

48.Showing income/asset transfer as part of inheritance receipts from parents or in-laws.

49.Keeping kickbacks and commission in the foreign countries from the foreign contractors.

50.Buying highly costly diamonds worth millions of Rs. and placing them in bank lockers.

The list is, however, incomplete as not only some of them could be beyond our mental imagination but also new and innovative sources continue to emerge. Investigators of all the anticorruption agencies should thoroughly look into all the above mentioned possibilities plus a few more if they can identify while investigating the suspects accused. For each of these secured and safe heavens, an exclusive set of policies for implementations are required after detailed consultations with the bankers, real estate agents, builders etc.

131

868. A forum may be formed consisting of youth, women & human rights organizations, bar associations and NGOs with their representatives etc. which will have the right to assess government funded projects and its execution data etc.

869. The government may direct the universities to set up “Refuse to be Corrupt Cafes” where their young people will sit down and discuss issues and map out plans to curb the evil.

870. A Corruption and Smuggling Tracking Tool may be established to identify all areas of corruption and smuggling of goods and recommend necessary measures for implementation by another authority over the existing set-up.

871. All those agencies involved in anti-corruption crusade should hold their conferences separately at the start of every month to report their progress of the last month along with comparison with the progress of the previous years such as no. of complaints received, arrests made, value of goods / amount recovered etc.

872. An anti-smuggling meeting may be organized on quarterly basis consisting of the FBR and Chambers of Commerce and Industry representatives to study the menace of smuggling of drugs, cigarettes, petrol, clothes, etc. and recommend measures as to how to control or curb their smuggling.

873. Though the system of accountability of judges exists through the Supreme Judicial Council, it is generally believed to have done not sufficient accountability. Judges are expected to be above ordinary people with high level of integrity, spotless character and incorruptibility.

Their accountability system should be efficient as they judge others.

874. A National Integrity Workshop should be held at least once a month where different stakeholders discuss all the issues, relating to corruption and form consensus for phase wise solutions. Special Integrity Workshop for each peer group such as the parliamentarians, ministers, businessmen, professionals etc. may be held separately to discuss and recommend measures relating to their work and responsibility for curbing corruption in Pakistan. A follow up Action Plan may be designed to implement recommendations of the Integrity Workshop into practical shape.

875. Integrity Pledge is another tool through which the participants of the Integrity Workshop commit themselves with their signature to act honestly in all respects in their duties.

876. In the fight against corruption, the following are the major stakeholders; 1- Civil Society, 2Media 3-Private Sector 4- Public Sector 5- Parliamentarians, 6- Watchdog Agencies 7- Police 8- Prosecution 9- Judiciary. Each has its own role to play. So it is extremely essential that each one be made fully conscious and responsible to do its utmost.

877. A government that has corruption at the highest level lacks the moral authority to act against those who are corrupt at the lower level. So the exercise has to include the top management of the country; Present P.M, C.Ms, Cabinet Ministers, Federal Secretaries, Provincial Secretaries, CEOs of the private sector units etc. However, the attack in this battle should be such that it can show credible impact on the major stakeholders where the return on investment is the highest.

878. Income tax and sales tax are evaded in Pakistan through highly unique ways. For instance, a sugar factory kept its production in secret godowns in different areas of the Punjab & Sindh to evade taxes (Daily “The News “21-11-2015). To get disclosure of such methods, the FBR should encourage employees and other concerned persons to provide vital information through some incentives scheme while their names will not be disclosed.

879. The FBR has launched an online verification of Letters of Credit with the banks to curb under invoicing and money laundering etc. Use of the Information & Communication Technology (ICT) can improve transparency of the public sector functions and facilitate the collection of digital footprint and raise audit system as well as information sharing and incidents reporting etc. A committee consisting of ICT experts of FBR, NAB, FIA, ACEs and Banks etc. should be formed to recommend specific steps to introduce maximum use of information technology to curb corrupt practices.

132

880. Each Provincial & Federal government should spend a few million Rupees to prepare and design its own website which carries forms of all the departments under its control with all necessary instructions and procedures & make required fee payable electronically as far as possible.

881. The following logos may be considered for different anti-corruption agencies in the country: 1.Say no to corruption.

2.Be honest.

3.Your no to corruption crimes.

4.I am against corruption.

5.Pakistan against corruption.

6.Corruption is enemy of development.

7.If Pakistan has poverty, it is because of corruption.

8.Corruption is the most lethal and absolute weapon against development.

9.Power tends to corrupt, absolute power corrupts absolutely.

10.You can stop corruption.

11.Anti-corruption starts from you.

12.Be honest & fight corruption.

13.Stop corrupters.

14.Save the country against corruption.

15.With corruption, everyone pays.

16.If we don’t catch corrupt, who will?

17.Join, help & guide me to identify & catch corrupt.

18.Fight corruption as best you can to build Pakistan.

19.With corruption, everybody pays 20.Of all the moral evils, corruption is the worst.

21. Corruption is an addiction and so avoid it.

22.Every man has his price but not mine.

23.The end result of corruption is destruction here and in the life hereafter.

24.Don’t justify need or greed for corruption.

25.Refuse to marry a corrupt person.

26.Change mindset of corrupt persons.

882. The young students may be sent to small projects funded by the government to assess whether the projects were completed according to the prescribed procedures, specifications and within the approved cost & time period and frame their recommendations to the higher authorities.

883. “Zero Currency Notes” Movement may be launched with promotion of similar “Zero Currency Notes” similar to original currency with some anti-corruption massage with the permission of the State Bank of Pakistan for distribution to the officials of the top ten corruption ridden ministries of Pakistan. The message on the Note will be to help contain corruption at all levels with the message, “I promise neither to accept nor give a bribe”. The Note can be downloaded from the site www.zerocurrency .org. for further changes etc.

884. Code of Conduct for different professions like lawyers, builders, contractors, architects and doctors etc. may be formulated with the major objective to fight corruption prevention activities and in case of proven violations, their licenses be cancelled.

885. Pakistan should sign Mutual Legal Assistance Treaty for investigation in corruption suspected cases and extradition treaty with all major trading partners for getting all possible assistance such as relevant documents, freezing assets, and all proceeds of corruption crimes are returned to their legitimate owners.

886. At the time of giving awards of contracts, the government contractors should be asked to sign a condition that the contracts will be terminated in case it is established that they have bribed the officials.

133

887. The Higher Education Commission should direct the universities to hold Integrity Campus, where the young should inject fun for fighting corruption for finding long lasting anticorruption solutions.

888. Young people may be encouraged & mobilized to take the anti-corruption struggle to the stage through music, drama and poetry system.

889. NAB / FIA may arrange online forums for ideas’ exchange amongst students, lecturers, judges, doctors, bureaucrats and businessmen etc.

890. A very difficult question is as how to deal with cases when the corrupt stock their wealth, money or assets in the names of others even after having strong evidence. To tackle such cases, detailed investigation of the owners of these assets will have to be undertaken to find the truth.

891. The Indonesian style “Honesty Stores” may be set up in selected high schools or colleges at their premises where the students buy stationery or books and drop the cost of the purchased items into a box to inculcate honesty in them.

892. All the political parties may be asked to send their recommendations to NAB/FIA/ACEs/PMIT/CMIT/National Assembly / Senate Committee members regarding corruption issue.

893. All the Bar Associations of the country may be asked by NAB to provide their recommendations on this subject with particular emphasis on quick justice system in these cases.

894. A highly attractive anti-corruption slogans such as “if there is no corruption, there will be no poverty” may be widely publicized by some NGO. 895. All top officials concerned with the procurements and purchases in the official organizations should attend a course in PPRA Rules as well as on morality to be organized by the Public Procurement Regularity Authority.

896. Two former Army General have been punished under the Pakistan Army Act for their involvement in embezzlement in the National Logistic Cell which caused huge financial losses to the company. (Daily “The News” 6-8-2015). This punishment will give a clear message to all in the country. So it will be highly appropriate that such an exercise be further extended.

897. There is strong need to wage a “War on Corruption” similar to the currently run war on terror in Pakistan.

898. These should be some ways to oversee and ensure implementation of NAB’s 15 point recommendations for better governance in Khyber Pakhtunkhwa. Other provinces should seriously consider implementing the similar program.

899. The NAB prepared a comprehensive package for implementation to overhaul the country’s tax machinery (Daily “The News” 21-4-2015). There is a strong need for speedy implementation of its recommendations without delay.

900. It should be made mandatory as soon as possible, say within the next 2 years, for all government institutions to use electronic filing & working system which will enhance efficiency & transparency.

901. It is a matter worth consideration whether an alleged accused should be granted bail in corruption cases. Afar Mahmood Gondal, the former Chairman of Employee Old Age Benefit Institution, has been accused of spending Rs. 44 billion for purchase of 18 properties in Lahore, Islamabad, & Karachi at exorbitant prices but he is granted bail. The law on the subject needs to be revised & tightened in so huge corruption cases.

902. The Chairman of the NAB & FIA should be appointed by the Chief Justice of the Supreme Court of Pakistan & Provincial Anti-corruption Establishment by the respective Chief Justice of the High Court and PMIC by a team of Leader of the Senate and leader of the National Assembly.

134

903. There should be a maximum time of six months for a case to be probed and filed by the NAB or other similar organizations & all such cases be disposed of by the court in a similar period.

904. The civil society or NGOs should annually sponsor a few kms. protest or awareness walk or race of the young or old people or both to attract attention towards the corruption problem in the country.

905. The NAB Chairman, Qamar-uz-Zaman Ch., recently introduced a no. of measures to enhance its working efficacy. Hopefully, these steps should contribute to boost the performance of NAB, which are generally considered to be insufficient and un-satisfactory for variety of reasons. A mechanism must exist within NAB to ensure proper implementations being introduced.

906. Out of 150 mega corruption cases of NAB, the share of the politician is only 20, or 13% while others are civil servants, businessmen, owners of the private housing schemes, textile mills owners, loan defaulters, private builders etc. The share of the politicians appears to be insignificant. The NAB must think over this subject and come up with its reasons and how to enhance this ratio.

907. The role of media in curbing corruption is of vital importance and in the past, it has no doubt done a lot. It is suggested that a special appointment be made by each TV channel whose only assignment is to identify corruption cases in the country. These special assignments will certainly help in controlling corruption in the country.

908. The assignment of NAB’s officials is of a very wide nature including technical, financial, legal and administration. Staff selection must, therefore, include persons of only high caliber but also of different subjects like, engineering, economics, MBA, Chartered Accountant etc.

909. The Auditor General of Pakistan should publish a report titled “Pakistan Auditor Yearbook”.

910. As a part of objective to control or contain corruption, business- friendly opportunity schemes or projects should be made available in the countryside so that the people should not fall prey to fraudsters in such schemes, like double shah. In this respect, the role of the government is important for awareness and education. Beside ,it should promote the introduction of proper investment and business opportunities.

911. A report by the International Consortium of Investigative Journalists of 2013 revealed the names of more than 400 Pakistanis who have offshore accounts in tax havens like the Cayman Island and most of them were politicians & businessmen. The list needs to be published in the press.

912. A new system needs to be devised that promotes “Honesty is the Best Policy” by providing extra perks or funds to nourish honesty in the public sector employees.

913. Employees within NAB, FIA, or ACEs should be encouraged to report their knowledge of unethical or illegal activities within their own institutions or by their own bosses without fear of any kind. Cash awards should be given to the whistle-blowers in case of any illegal practices etc.

914. A system may be organized by NAB/FIA/ACEs which will annually declare or choose 100 proven corrupt persons and fraudsters as “PERSONA NON GRATA" with their photographs and short history/ profile which will act as "HATE and SHAME MODELS" for all others engaged in this evil profession.

915. Sales Tax evasion is massive particularly in restaurants, hotels, beverages, cigarettes and sugar mills etc. Estimates differ but it could be about 50% or more. It is a big issue.

Administrative measures are of no help in this case. However, drive based on Islamic, ethical and moral values should be of some assistance.

916. Corruption environment is so deep and bad in Pakistan that even a renowned airline personality, CEO, PIA, imported from Germany had to be fired for his doubtful role in purchase/sale of aircrafts. It is extremely important that the overall integrity level of the people must be vastly raised through training, education and tough prosecution.

135

917. The issue of keeping multiple bank accounts and buying plots in others’ names is quite serious and requires a Joint Investigation Team to recommend measures.

918. Money laundering is a business of hypercritical magnitude and requires very serious and sincere commitment of the Government. Money laundering wings of all anti-corruption agencies must be strongly strengthened with internationally renowned experts or a separate body may be set up for this subject.

919. An Ad. may be given in the press and electronic media requesting people to inform names and addresses of the Hundi business in Pakistan while the informers names will be kept secret besides some cash award to the informers.

920. FBR should annually publish names of top 100 TAX DEFAULTER COMPANIES of the Year of the country.

921. The NAB made some irregular appointments recently. The NAB should act as an institution of unquestionable integrity and an example to be followed by others.

922. No matter, how many cricket players are banned from playing cricket, as long as the bookies are free and untouched, they will go on approaching players to fix matches. The Interior Ministry. , FBI and Pakistan Cricket Board should sit together to formulate steps to eliminate them.

923. The former President of Pakistan, Asif Ali Zardari, says that the rulers (Nawaz Sharif) are constructing roads and bridges for commission (Daily “The News 24-3-2017”). The former President is requested to articulate his comprehensive advice for the nation to control this menace in view of his own long experience by writing a book on this subject with any other respected person as co-author to identify all kinds of opportunities at the highest level.

924. The role of Whistleblowers in combating corruption is vital. The anti-corruption agencies should formulate a plan titled" Guidance and Protection for Corruption Whistleblowers “for recommending necessary measures.

925. A short chapter on "Tax Education/Culture” may be in included in the textbook of Intermediate/Matriculation classes of the country in order to promote payment of tax obligations in their later practical life.

926. In such circumstances, where NAB feels the prosecution case is not very strong, it should preferably, quickly opt for plea bargain and generate resources for cash starved economy.

927. A PIA international flight was recently diverted by the British Air Force for arresting a British Pakistani for a fraud of £ 175 only. Here in Pakistan, corruption superstars are granted bails, or acquittal or allowed to go abroad or cases kept pending for years. The whole system in the country needs revolutionary changes to properly tackle the monster.

928. In the bogus degree case, an Exact accomplice, Umair Hamid, pleaded guilty in a US court of amassing 140 million dollars (Daily "The News", 9-4-2017).In complete contrast in Pakistan, the top accused is granted bail because of failure of FIA. The top counsel of FIA withdrew himself from the case, its failure to produce bogus degrees as evidence, and half of the bank accounts are not frozen etc. A secret study is required to get the facts for overcoming such unfortunate deliberate acts in future.

929. Medical treatment abroad of top dignitaries of the country should be completely banned as Pakistan is one of the top poor economies in the world and unavailability of such treatment to the rest of the population promotes corruption.

930. According to the daily, “The News” db. 10-4-2017, the NAB has yet to recover about Rs. 10 billion out of Rs. 18 billion agreed to be deposited in 769 plea bargain cases. There should be a clear cut clause in the agreement between the NAB and the accused which allows after one year straightway arrest of the accused with imprisonment till the final payment is made along with his name in the ECL List.

931. Some independent research center may undertake a research study titled " Pakistan’s Legitimate Corruption Bombs" identifying the legally authorized expenses of the elite class of

136

the country like medical, cars, plots etc. of the last 10 years and suggest how to reduce them keeping in view our country's economic conditions and social justice.

932. Self-raise in salary, perks and privileges of any parliamentarians and bureaucrats etc. should be subject to approval by an independent commision consisting of financial experts from both government and private sector.

933. The Federal Ministry of Information may issue advice to the print and electronic media to use the word "Financial Terrorist" in place of "Corrupt" as far as possible.

934. In high profile money laundering cases, the foreign remittance sources don't cooperate and don't care to respond to NAB’s enquiries. In such enquiries, NAB should send special representatives to foreign countries and locate those cos. and in case, these sources don't exist or refuse to confirm their remittance to Pakistan, such cases may be straightway sent to the Accountability Courts.

935. Money laundering legislation must be made very strong to deal with financial criminals.

936. A novel of 1969 "The Godfather" says: “Behind every great fortune, there is a crime." A research study may be undertaken to identify 25 Pakistani big fortunes to unearth their financial crimes to formulate counter policies. It will be a very difficult assignment and may take a few years but it is worth and probably the first of its kind in the world’s history and may be the bestseller book in financial crimes. The author will have to locate old close associates for this herculean job.

937. As there is no end for world’s wishes as well as greed, it is extremely important to teach the importance of contentment in schools and other places.

938. A Character Building Academy may be established by all provincial governments for police personnel for holding course in character building, morality, integrity, humanity, and developing hatred for corruption as the police ranks high in corruption table in Pakistan.

939. A study on "Money Trail System" with reference to Pakistan may be undertaken to comprehend the system and its intricacies and recommend counter measures for curtailing the flaw.

940. Anti-corruption Establishment, Punjab, ordered registration of an FIR against its own officer after an enquiry proved him guilty of corruption. (Daily "The News"29-4-2017). It is a rare incident. All the other anti-corruption agencies must initiate, identify and locate corrupt officers in their own ranks and start proceedings against them.

941. A former Chief Justice of Supreme Court of Pakistan, Jawwad S. Khawaja, refused to accept two free plots in Islamabad calling it unfair, unjust and misconduct. (Daily The News, 29-42017). Such an act has probably no precedent in Pakistan’s history. There is strong need of a review of this policy because it is against equity in a country with some175 million people living from hand to mouth.

942. There has to be some strong mechanism in place to monitor and implement the recently passed Benami Transaction, Act 2017, such as appointing a committee for this purpose.

943. The NAB arrested a Grade 22 Officer of the National Highway Authority in KPK for amassing wealth of about Rest. 500 million. Such level of corruption cannot be committed without connivance and cooperation of colleagues, upstream and downstream of the NAB investigation policy must include all around the suspect accused.

944. There is a strong need to undertake a deep study of the corrupt practices undertaken by world leaders like Muhammad Suharto, Ferdinand Marcos, Zane Al Abidine Ben Ali, etc. in their countries so that Pakistan’s anti-corruption agencies investigators are able to enhance their vision, knowledge, techniques and methodologies. They are all poor and developing countries with astronomical wealthy leaders.

945. According to a report in the daily "The News"4-5-2017, about 124000 beneficiaries of Benazir Income Support Programmed appear to be suspicious and fraud showing morality level of the lowest income groups who are mostly needy. The economy has to move at a fast rate to provide basic minimum needs to contain corruption.

137

946. Salary or income obtained for working in a private organization financed by illegal sources of rich and wealthy persons (and not poor and needy people) should be declared as “Haram” by the Islamic scholars because these persons can afford to wait and they are fully aware that the organization has been funded by unfair income such as corrupt income or tax evasion etc.

947. Medical doctors in Pakistan prescribe medicines of specific medicine manufacturing cos. and they are bribed through cash, lavish overseas trips, cars, air-conditioners for their homes and offices, etc. which is certainly another kind of corruption or corrupt practice unless in some cases they genuinely believe the medicine of the particular co. is superior. The Pakistan Medical and Dental Council, Pakistan Pharmaceutical Manufacturers Association and NAB should set up a committee to deliberate this serious issue and formulate a Code of Conduct, which binds all of them with check and penalties to be decided by an independent body in case of any violations.

948. The administration of Capital Development Authority and Islamabad Capital Territory declared 122 properties in Islamabad Bani Gala area including the residence of super anticorruption advocate, Imran Khan, as illegal and violations of zoning regulations with recommendation for their demolition. In a country where the super elite of the country violates rules and regulations so ruthlessly, the prospects of success against the corruption struggle are certainly not bright. However, all illegal constructions in the country after a survey should either be fined or demolished to establish rule of law for all and set examples for future generations.

949. A National Tax Day should be observed all over the country every year to develop tax culture in Pakistan. System of blacklisting companies offering bribes and indulging in corrupt practices should be developed and seriously enforced.

950. The National Identity Cards as well as their mobile nos. and bank accounts of all those facing corruption enquiries but not traceable should be blocked.

951. The total annual budget of all anti-corruption agencies should be linked with 1.Overall national estimates of corruption 2. Total development and non-development expenditure of all federal and provincial governments along with bodies under their control 3. Following the successful Hong Kong model per capita budget of about $ 10-15. The exact figure will be arrived at by a high-powered committee consisting of members of all governments, federal and provincial.

952. We must teach people not only hate corruption but also hate corrupt from core of their heart.

Every corrupt person should be treated like an alien person or untouchable as the Hindus treat their Untouchables.

953. With the revival of death penalty for murder and kidnapping, crime rate went down in 2015 which shows that the death sentence acts as a big deterrent against crime and so it appears necessary that death penalty be also imposed on big corrupt people.

954. Annual Tax File Returns must be made compulsory for all political parties registered with ECP for very close scrutiny as it is quite possible that corrupt money, tax evaded, black money and laundered money etc. are being provided into their accounts. This will definitely help in restricting the inflow of prohibited funds in their income. The PTI has received about Rs. 35O million so far from USA alone and nobody knows the breakup of its original supply sources.

Pakistani companies must be bound to release information about their investments in foreign countries including tax havens so that the people should know their activities and purpose.

955. The FBR should provide a copy of a very useful book titled, “Bribery and Corruption Awareness Handbook for Tax Examiners and Tax Auditors" to its officers. This book is meant to raise awareness of tax examiners and auditors with respect to taxation and corruption.

956. The country needs “DEMOCRACY and not "CORRUPTOCRACY" and generally democratic regimes are soft states and thus laws are not very strongly applied. In view of this problem, the Government will have to exert and enforce rule of law as a matter of priority.

138

957. There is strong need to highlight the critical importance of raising tax revenues and curtailing corruption and tax evasion through TV dramas, humor, stories, theatre plays etc.in schools, colleges and universities as well as in TV channels and newspapers.

958. NAB and FIA should give special awards every year to journalists and others for making extraordinary contribution for achieving the final goal of making Pakistan corruption-clean and provide them all possible assistance and encouragement.

959. The name of our currency is remarkable as it is usually called PAK RUPEE. It is a unique name which means" pure/holy/immaculate.” An Ad.campaign may be launched to reconnect it with our anti-corruption slogans such as "EARN PAK MONEY’ which is also PAK in reality or "Let all of us earn only PAK RUPEE." 960. Some organization or NGO should study the subject of ethical business and prepare every year a list of top 10 Pakistan’s Most Ethical Cos. with ranking and rewarding them for their honesty and exemplary business practices and transparency despite difficult circumstances and environment.

961. The universities should act as symbols of honesty and integrity. The HEC should annually give award to a university for showing excellence towards the objective of corruption cleaning.

962. The Chairman NAB has suo-moto powers to probe cases of corruption, which have not been used for reasons best known to the Chairman, past or present. It is highly appropriate that these powers should be used in cases involving corruption of millions of Rupees. The use of such powers will act as a deterrent and create fear. Necessary additional staff may be employed for this special job.

963. Several international Anti-corruption conferences are held every year such as Annual International Bar Association (IBA), Annual Global Fraud Conference, Financial Crimes Summit, International Anti-Corruption Conference etc. every year. Pakistani representatives must attend these conferences and a mechanism should be in place to “ensure implementation of their recommendations.

964. Speedy and regular scrutiny of income and assets statements of all parliamentarians must be ensured and necessary actions such as disqualification from the elected seats as well as criminal proceedings be taken for wrong declarations without exceptions.

965. Pakistan is a signatory of OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters against Offshore Tax Evasion and Avoidance. On receipt of information, the FBR should immediately release names of all these Pakistanis who transferred funds from Pakistan to OECD countries.

966. A special few pages brochure on the subject of GREED may be published for massive distribution all over the country.

967. Following is a short list of frauds committed by private parties or individuals for necessary counter measures: 1.Double or triple monthly profit on investment 2.Formation of housing schemes without land and then selling plots 3.Fake degrees 4.Smuggling of goods and manpower to foreign countries.

5.Offering heavy returns on investment 6.Setting up unauthorized bank branch 7.Setting up an office of a minister 8.Issuing fake job letters or visas or passports or printed currency notes etc.

9.Adulteration of food 10.Fake manufacturing of medicines and cold drinks 968. A commission will have to be formed to complete the above list as far as possible and recommend counter measures for their prevention in future.

139

969. A Graduate /Diploma Course on Fraud and Financial Crime may be introduced in a university which is aimed at meeting their education and training needs for fraud investigations by police, FIA and NAB. 970. The world personalities like Joe Biden, former Vice President of the USA and David Cameron, former Prime Minister of UK are symbols of high level of honesty, integrity, simplicity, uprightness, morality, and character for emulation and massive publicity in Pakistan's print and electronic media.

971. Every Government body should make maximum use of information technology to its maximum for transparency in its decision-making and employ IT experts for necessary computerization. There are near about 100 regulatory authorities in Pakistan dealing with a large variety of subjects. The Federal or Provincial Governments should direct them to identify corruption areas as well as areas where manipulations of rules and regulations are done etc. in order to revise, update and improve the system as far as possible.

972. The corruption probing agencies are too weak to investigate corruption charges against two Federal Ministers for alleged corruption and fraud. (Daily The News dt4-3-2017). The judges of the Supreme and High Courts should have the powers to order submissions of investigation report by NAB or FIA or ACEs in such cases.

973. A detailed study is essentially required to probe and understand the links of corruption funded terrorism in Pakistan for preparing comprehensive strategy for elimination of such funding.

974. Dowry system in Pakistan is another major factor in promotion of corruption. A major drive has to be launched in the electronic media as well as in educational institutions against this evil for years on a regular basis as well as through dramas, textbook chapters, debates, and lectures as well as religious sermons. A National Commission on Dowry Elimination may be formed to make specific recommendations in this respect.

975. The NAB anti-corruption drive in Baluchistan should be extended to cover all the departments and offices of all the Federal and Provincial Governments in view of the experience of Mushtaq Raisani.

976. There should be at least 2.5 to 3.00 million tax filers based on total no. of registered cars in Pakistan. The FBR should straight away send notices to all of them for submitting tax returns excluding pensioners or holders of Behbood Savings Certificates or foreign remittance dependents etc.

977. Some NGO should prepare an exhaustive list of corruption allegations against major political actors and ask them to say “yes or no “to the allegations, item-wise, with firm commitment that in case of wrong information, the state will take over your assets without involvement of courts.

978. Yet another study is required to provide advice and guidance how to be not a part of corruption cycle in an organization without facing the immediate threat or penalty of transfer or demotion or sidelined or stoppage of annual increments or false charges of inefficiency etc.

979. It is generally alleged that the corruption modus operandi of PML (N) Government is beyond the comprehension, capacity and mental imagination of both the corrupt and noncorrupt people. An Independent study by an international organization is required to arrive at the realities and so that super counter strategy could be originated.

980. The FBR should revise the Income and Expenditure Statement as well as Assets and Liabilities Statements comprehensively to ensure that offshore accounts, investments, properties, etc. are provided and in case of wrong information, FBR should get the legal right for their takeover by signing aggreements with foreign countries.

981. A top secret study is essential to identify all top posts in all governments departments in the country which are for sale so that necessary measures and changes in rules and regulations could be made to restrict both the sale price as well as the no. of lucrative posts.

140

982. An Ad. may be given in the press asking top elite of the country to provide their wealth statements along with sources of funding them for public view to set examples for rest of the country about their honesty standards.

983. The Indonesian Religious Affairs Minister has suggested that it is greedy wives who are fuelling corruption in Indonesia. (“The Strait Times� 25-4-2016). This statement appears to be not wrong by and large as women are generally demanding. It would be appropriate that special TV programs be telecast such as on role of women in corruption control or how not to be a greedy wife or how to enjoy a life of contentment etc. In addition, special lectures should be arranged on this subject in the women colleges as they are soon going to be wives.

984. A worldwide country-wise ranking table may be prepared regarding corruption conviction rate over the last 10 years and find out where Pakistan stands and examine the policies and procedures adopted by the top countries so that necessary changes are made by Pakistan's anticorruption establishment accordingly.

985. People should be encouraged to file corruption related complaints with the relevant anticorruption institutions but in case of deliberately wrong complaints for blackmailing and defamation, some prison sentence should be awarded.

986. The NAB is taking a large No. of measures to improve its working by imposing a maximum limit of 10 months for complaint-verification-to inquiring-to-investigation and then filling reference in the Accountability Courts along with the system of evaluating the performance of the staff etc. In addition to these steps, the NAB should promote or punish its officials for their excellent or bad performance in discharge of their duties.

987. Some NGOs should publish a free interesting monthly magazine with a striking title for massive distribution carrying true horror stories of corruption in Pakistan or abroad, Pakistan's anti-corruption policies and programs and ways and means to combat corruption carrying messages and awareness program etc. At present, there is no such exclusive magazine on this vital subject. The American Anti-Corruption Institute (AACI) publishes a biannual magazine called "Corruption Magazine" which is delivered digitally containing a variety of articles on corruption.

988. The American FBI has more than 2000 investigators to undertake corruption probes. The investigation strength in NAB / FIA / AFCs is not available but it is very unlikely to be anywhere near the FBI's, whereas our t task is far bigger. However, in view of enormous level of corruption in Pakistan, these agencies need specialists in tax evasion, smuggling, embezzlement, fraud, under-invoicing of imports, collusion, etc.

989. Where in such cases FIA/NAB/ACEs or other agencies are involved, directly or indirectly in corruption - related probes and facing difficulties in preparing sound prosecution cases, they should not hesitate to seek advice from external experts and /or concerned persons in the public or private sector, both within and /or outside the country secretly.

990. Acquittal of a former President of Pakistan because of non- production or availability of original documents showed NAB's negligence. Why were not attested copies obtained by NAB? Those dealing with the case should be warned to be careful in future. If NAB is really serious in such cases, in future, it should get all the photocopied documents "attested to be true" from all those who originally issue these documents as a matter of policy and priority.

991. According to a recent study on quantification of losses to the economy due to smuggling, there are 11 major smuggling prone items causing losses to the tune of $2.6 billion on annual basis. These are several reasons for so huge losses including corruption of the customs & other departments and tariff structure. To drastically reduce the losses over a period of, say3 years ,an authorized monitoring committee should be set up for necessary changes in policies.

992. All sorts of prohibition regarding corruption including nepotism and misuse of public resources should be clearly included in the legal code.

141

993. The NAB / FIA / ACEs officials should actively participate in the World Bank managed International Anti-corruption Practitioner Conference as well as International Corruption Hunters Alliance in order to enhance their knowledge to combat corruption in Pakistan.

994. It is important to identify a few "Islands of Good Governance", if possible in the public sector in Pakistan, who fight against corruption and follow examples of good governance.

Such islands must become examples for other corrupt institutions.

995. A 319-page book titled "Global Program Against Corruption" of the United Nations Office on Drugs and Crime is an excellent book, which provides a comprehensive anti-corruption tool best for the Pakistani anti-corruptions establishments.

996. Global Open Data Index is a global reference for the state of open data released by national governments. It provides an independent assessment of openness on a range of public information in 97 countries. Out of 97 countries, Pakistan's government ranking was 41st with UK, Denmark and France as the top three countries. Pakistan Government must take all possible measures for release of open data to help curb corruption in a no. of sectors.

997. Former Prime Minister, Raja Pervaiz Ashraf, is alleged to have released Rs. 42.5 billion to MNAs & notables from the public exchequer without any proper monitoring mechanism and fulfilling formalities (Daily "The News" 27-11-2015). The use of the public money in this manner must be absolutely banned through specific passage of law.

998. According to a news item in the daily, "The News “28-11-2015 ,the Auditor General of Pakistan reported financial irregularities of Rs. 2 billion by the former Interior Minister of PPP Government. Some necessary amendments in the laws are needed to ensure quick recovery of this huge amount.

999. Anti-corruption agencies officials may be sent to the International Anti-corruption Academy, which aims at overcoming current shortcomings and practices in the anti-corruption area though, education, research & cooperation.

1000. The Pakistan’s Parliamentarians should join "Global Organization of Parliamentarians against Corruption” which provides information, analysis, established benchmarks and improved public awareness.

1001. NAB / FIA / ACEs officials should seek guidance and exchange ideas with AntiCorruption Research Network Transparency international.

1002. UNODC (United Nations Office on Drugs & Crime), as a global leader in Anti-Corruption, provides technical support to UNCAC (United Nations Convention against Corruption) members. Pakistan Anti-corruption agencies should frequently seek its technical support.

1003. Pakistan should frequently seek support and guidance from Anti-Money Laundering Global Task Force to develop approaches with respect to combating money laundering and promoting the use of practical tools & techniques to arrest such practices.

1004. The Global Organization of Parliamentarians against Corruption (GOPAC) has developed "GOPAE", an Anti-money Laundering Action Guide, for parliamentarians, which provides information and tools to become actively engaged in legislation in the fight against money laundering.

1005. The prime focus of International Anti-Corruption Resource Center, Washington, is a humanitarian & development project where corruption is rampant. It has published a guide titled, "Our Guide to Combating Corruption & Fraud in Development Projects”. The officials of NAB / FIA / ACEs should be provided copies of this publication which provides detailed step-by-step introduction on how to detect & prove bribery & fraud including how to conduct effective background checks etc.

1006. The Chairmen / CEOs of the top 100 international anti-corruption agencies should be invited to visit Pakistan to hold consultations with the Chairmen / DG, NAB/ FIA /ACEs to seek their guidance and recommendations to fight corruption in Pakistan.

1007. There are estimated to be at least 100 or more international agencies / institutions working in anti-corruption field. The NAB should seek their recommendations, suggestions and ideas

142

to combat corruption keeping in view the Pakistan’s political, economic, social, judicial and administrative system etc.

1008. The country desperately needs, on emergency basis, legislative reforms relating to watchdog agencies and judicial system for building capacity for quick justice and executive reform including tax, deregulation, customs etc.

1009. A well-written book titled "NGO's Corruption Fighters Resource Book - How NGO Can Use Monitoring of Advocacy to Fight Corruption" by Richard Holloway should be made available to Pakistan’s NGOs to enter this critical field to further strengthen their anticorruption activities.

1010. The World Bank concept “Anti-Corruption Collective Action" may be initiated in Pakistan.

It is a collaborative and sustained process of cooperation amongst stakeholders such as businessmen, government and non-government officials through declaration not the to engage in corruption during a particular project.

1011. The Ministry of Interior should launch a web based anti-corruption portal which may be named as PAK – Track (Tools & Resources for Anti-Corruption Knowledge) on the lines of the website of the United Nations Office on Drugs and Crime and it will provide a unique gateway of an electronic database of legislation, total performance of the anti-corruption agencies, disclosure of offshore accounts, assets recovery etc. of top businessmen and political elite of Pakistan for information of the government, media, public etc. This will provide an assessment of the overall current situation for formulation of future policies.

1012. The Federal Bureau of Statistics publishes annually "Pakistan Statistical Yearbook" containing vital data on Pakistan’s economy. The FBS may be directed to publish "Pakistan Anti-Corruption Yearbook" every year in view of the extremely critical significance of the subject containing data regarding the no. of complaints received, investigated, processed, submitted to courts, acquittals, conviction, bargain amount received etc. by each anticorruption investigation agency of all the Federal & Provincial Governments of the last 15 years or more. It will be highly useful for policy-makers, legislatures, and judiciary and of course, corrupt. It may also carry estimates on extent of corruption based on Tax-GDP ratio and other basis by different institutions /sources etc.

1013. Some NGO should consider publishing an annual titled "Pakistan Corrupt Practices Yearbook" carrying all briefs / details of the cases of corruption and irregularities, misuse of authority, terrible stories such as ghost schools and pensioners, nonpayment of water, gas and electricity bills as well as theft losses etc. which cropped up during the previous fiscal year as well as during the last 10 years.

1014. An idea of the financial integrity of the country’s elite class consisting of a no. of Ministers MNAs/ Senators of both the ruling and opposition side who otherwise spend millions on their election campaigns can be had from the fact that they are defaulters of their home electricity bills for months despite servicing of several reminders for immediate payment. If you go through the list, you will feel pity for the country. If the country's top class stoops so low in terms of morality knowing the fact the electricity cos. are facing huge defaults, expectation of a major economic and overall breakthrough is certainly a wishful thinking. However, the Federal Ministry of Water and Power should have the courage to order their immediate electricity disconnections to set examples of equal rule of law for all.

1015. The Punjab IT Board and the World Bank are likely to devise the first ever procurement systems, which will standardize procurement procedures, reducing documentations, improving decision-making and raising transparency. The program needs to be pursued vigorously for implementation at all levels of the government at the earliest by all other Provincial and Federal Governments.

1016. The Supreme Judicial Council should have its own exclusive website with a Complaint Cell regarding corruption in the judicial system so that necessary action can be initiated accordingly.

143

1017. To ensure concept of accountability for all, the Federal Ministry of Law should open ecomplaint boxes at their websites for reporting of corruption or illegal practices.

1018. Statistical data of all cases pending and decided etc. along with comparison with the last 510 years should be provided on the websites of all the courts separately-District-wise and Province-wise, etc. along with an annual publication titled "Pakistan Judicial Yearbook". It should be published by the Federal Ministry of Law in collaboration with the Federal Bureau of Statistics containing comprehensive statistical data on cases pending, filed etc. of different courts by districts and by year.

1019. To enhance the role of the Committee on Finance of the National Assembly, there is need to conduct an analysis about its performance during the last 10 years along with recommendations.

1020. The top bureaucrats are sometimes transferred if they refuse to follow the illegal orders of the Ministers etc. It is not possible to stop such transfer. However, it would be appropriate that some NGO should encourage them to write their memoirs for publication or anonymous articles to expose these politicians.

1021. All the Audit Paras of the Auditor General of Pakistan submitted to the Public Accounts Committee of the National Assembly of the last 10 years may be reappraised by an independent body for revised necessary action in view of the politicization of decisions taken in the meetings through necessary amendments in the relevant laws.

1022. Necessary investigation may be initiated by FIA/NAB or Suo Moto action by the Supreme Court of Pakistan on various horror corruption and illegal acts and scandals related in the columns of the journalist like Rauf Klausra in the Daily “Duniya” which are stunning & unbelievable and require necessary action.

1023. A Pakistani corrupt has several Cs. He is Cruel, Careless Craving, Crook, Creative, Cunning, Crafty & Criminal and so a large no. of evil characteristics covering different areas of life. Hence, the corruption patient will require multi kinds of treatment and drugs dosage including financial, legal and moral etc.

1024. A short true story with a title such as “Miseries of A Corrupt” may be published on quarterly basis by some NGOs in both English & Urdu, for massive publicity / distribution in the electronic & print media as well as in the Government & private sector offices describing terrible tale of his life in prison after arrest on corruption or similar charges or after his release from the prison.

1025. The capability of the NAB should be so significantly enhanced so that it can undertake drone style attacks, precise & sudden, on the residencies etc. of the corrupt.

1026. A Pakistani, Umair Hamid, was recently arrested in USA for providing fake diplomas and collected dollars 140 million from 4 thousands consumers by claiming to have affiliations with fictitious 350 high schools and universities. He used to receive about 500 calls per day (Daily the News 23-12-2016). People must be educated through print and electronic media about such cheats and ultimately their tricks don't pay.

1027. According to the Competitive Commission of Pakistan Report (2011), Pakistan annually loses about 6 billion dollars either because of collusion and mis -procurement which is near about Pakistan’s defense budget. The CCP should prepare a comprehensive plan to reduce public sector misappropriations.

1028. Besides a no. of anti-corruption bodies, the country has Banking Mohtasib, Federal Insurance Ombudsman, Federal Tax Ombudsman, Accountability Courts, provincial Special Courts, and Federal Ombudsman. In addition, private organizations like NGOs are also engaged in Anticorruption war. It would be, therefore, appropriate that all of them should sit together from time to time and come with bright ideas to face this issue in view of their long and wide experience.

144

1029. The Peshawar High Court has established a Corruption Eradication Cell to eliminate corruption from the subordinate judiciary in KPK. Similar Cells should also be established in the Supreme Court and High Courts of other provinces.

1030. Salaries of legislatures, who don't attend assembly sessions of less than say 75%, should be proportionately deducted just like Government employees who remain on leave beyond a prescribed period. Leave rules should be the same for all.

1031. Either "Legalized Corruption” should be across-the-board and it should be open to none. A study is required on this subject for all sections and cadres of the Government on the basis of equality, justice, fairness and morality.

1032. All contributions, small or big, to the political parties should be checked and cross-checked with close examination and collaboration system by NAB/FBR/FIA. 1033. NAB should act both as an instrument of resource generation through plea bargain as well as of corruption prevention as the economy of the country is money under-nourished with development expenditure heavily dependent on foreign assistance by about 83 percent.

1034. As across-the-board accountability is demanded by all, so it should be across-the-board in respect of free distribution of plots for all Government and semi government employees or for none except for Shuhada in military and police departments.

1035. Meetings of all Public Accounts Committees should be live telecast to let people know how serious audit objections involving billions of Rupees are written off by a stroke of a pen on political grounds and reciprocal basis.

1036. The NAB has spent about Rs. 12 billion since its creation as against recovery of about Rs. 279 billion which means only 4.2 % expenditure. (Daily “The News”28-11-2016,)which is remarkable and so not only plea bargain system should continue but also some new and innovative system should also be originated to earn some more additional income for cash hungry economy.

1037. There are a no. of musts for curtailment of corruption and one of them is an educated society. At present, according to the Global Education Monitoring Report of the UN, Pakistan lags behind by 50 years in primary education and 60 years in secondary education in comparison with the targets set for it in the Millennium Development Goals .In addition, about 38 % or 5.6 million children are out of school. It is, therefore imperative that education is attached high priority in funding.

1038. Corruption and illegal practices are very common in land and building sector. A major study is required as how to prevent fraud in this sector.

1039. To effectively tackle corruption issue, the significance of the Rule of Law is extremely important. At present Pakistan is ranked a 106th position out of 123 countries according to a survey by World Justice Project. Even Nepal ranked at 63rd, India 66th and Bangladesh103rd are better than Pakistan.

1040. Pakistanis have reportedly parked 816 million dollars in UAE. Every effort should be made with assistance of UAE Government to get their names along with amount and their sources of income earned in Pakistan as well as get back huge sums to Pakistan.

1041. Corruption control is not business duty of one institution such as NAB. It is a collectively responsibility from top political and business leadership to the lowest level of peon or clerk or a salesman in private shop. It is impossible for NAB to keep corruption even at the current level. However, as it is its major assignment, it must be strengthened in terms of manpower and financial resources and necessary law amendments are especially made so that the corrupt are not granted bail or run abroad and life and service security are also available to the NAB staff members.

1042. We shall have to teach people to remain patient and wait for their rights on merit. Use of speed money should be avoided as far as possible, 1043. The conviction rate of FIA in case of money laundering is only 7%, one of the lowest in the world as only 103 persons out of 1550 persons arrested were convicted (Daily “The News”

145

dt.30-12-2016). This rate will have to be improved substantially. A Special Task Force will have to be formed to recommend measures to raise this dismally low rate.

1044. A Pakistani cricket umpire has the unique distinction of highest performing duties in Test matches because of his honesty and hard work. Aleem Dar should be engaged by NAB/FIA to visit all universities and top corrupt offices in the country as well professional training academies and narrate honesty stories of his experience in highly difficult circumstances.

1045. FBR recovered the heaviest ever tax liability from a famous industrial group to the tune of Rs. 6.20 billion( Daily “The News”, 29-5-2017) which is worth deep appreciation and publicity all over print and electronic media for a week at least with all those FBR officials involved in this successful exercise. It will encourage FBR officials to do these wonders in future and they should be rewarded in cash and kind for resisting massive attractions.

1046. Hussain Nawaz, son of P.M., Mian Nawaz Sharif, transferred a sum of Rs.886 million or annual average of Rs.221 million in 4 years period from 2013 to 2017(Daily “The News” , 295-2017) which is more than extraordinary remittance by a son to his father. Hussain Nawaz should be requested to frequently deliver lectures to Pakistani community in UK as to how to become so highly successful businessman so quickly and then send money to Pakistan and his father or family members to improve health of their economy as well as of the country.

1047. The Godfather of Pakistan’s nuclear bomb, Dr. A.Q Khan, was not even provided car transport facility when he was appointed to build Pakistan’s bomb (Daily “The News” 29-52017). Such rarest examples need wide publicity for the country's elite officials for following him who are masters of misusing government -funded transport facilities.

1048. Complete identity of all the donors, big or small, of all the political parties registered with ECP should provide their complete information in their Income Statement every year who will later on submit these statements to FBR for cross-check through their Income Tax Returns filed by them.

1049. All courts records should be computerized and available on their respective websites to reduce dependence on court staff and judicial corruption.

1050. There is a strong need to initiate campaign to be called "Refuse Envelopes in Pakistan" by the associations of journalists, editors, electronic media, PEMRA etc. The problem with this kind of corrupt practice is that there is no record with both, giver and taker.

1051. The subject of “Corruption Investigation Journalism" may be designed and introduced as a subject in the post -graduate classes in the universities to enhance knowledge as well as competency level of the students.

1052. NAB's performance is given below for about 16 years since inception: Total Complaints received 326094 Enquiries Investigated 10992 Enquiries Completed 7307 Investigations Completed 3648 References Filed 2667 Conviction Rate 76 % Source: Daily “The News” dt.7-1-2017 The performance may not look impressive in terms of investigations completed-3648 in 16 years or on average about 228 per year. It is obvious that there is strong need for tremendous improvement in view of barbarous crisis facing the country.

1053. It should be made mandatory by law by every political party to keep proper accounting system and get them audited by a firm of Chartered Accountants and get clearance from FBR before contesting elections.

1054. In KPK, 47 MPAs serve as Ministers, Advisors, Parliamentary Secretaries, etc. i.e., about 57%, which is very high and doubtlessly an authorized corruption. There should be an

146

amendment in law with a maximum limit of 25% to save precious and scarce government resources (Daily “The News�11-12-2016) 1055. Benami business transactions should be made a criminal act but in case of the assets are proven to be untaxed or illegitimate, they should be confiscated with prison sentence to the corrupt.

1056. Through the recent Population Census, the Government has obtained data, person -wise, of whole of the country. Now let us identify the posh areas, societies and localities etc. and send a well-designed questionnaire to these inhabitants to provide details about their income sources and expenses along with assets statement as well as their foreign travels and education expenses etc.

1057. According to the Anti-Money Laundering Cell of the D.G, Intelligence and Investigation, Islamabad, 2785 individuals declared receipt of gifts of Rs.102 billion in the year 2016. (Daily The News" 4-6-2017). All these cases may be thoroughly examined by the Cell as per law on high priority basis.

1058. It should be made mandatory by PEMRA for all TV Channels to devote voluntarily 5 percent of daily transmission time as public service message against corruption.

1059. The FBR not surprisingly admitted before the Standing Committee on Finance of its failure to find just only 7 honest officers in whole of FBR for posting at checking points in front of Green Leaf Threshing because of high incentives which shake their honesty and credence. In such difficult situation, the FBR should recruit fresh persons through open Ad and hold a test in morality plus train the selected men for 3 months how to remain incorruptible before posting them .The FBR should follow a different recruitment procedure for a change and see the results.

1060. A special secret section may be established in all the anti-corruption establishments all over the country which will undertake sting operations to catch the corrupt politicians, public servants, private sector fraudsters and smugglers etc. as it is a tried -and- true tactic of the foreign anti -corruption agencies like FBI. 1061. Extraordinary emphasis should be placed by TV Channels on showing news and stories relating to corruption rather than politics or fake piers or restaurants food for most of its transmission period.

1062. In case of across-the-board accountability by initiating action only of Pakistani Panamanians, the workload of Pakistani Anti-corruption system will go up tremendously and for instance, only the no. of Accountability Courts will have to be raised manifold and hence their financial budget .

1063. More than 400 Pakistanis have been included in the Panama Papers. As only the accountability against the chief of the PML (N) and the rest has not been investigated, so an across-the-board accountability is required without exception whatsoever without further delay.

1064. All political parties should undertake secret assessment of the financial integrity of all the candidates seeking tickets of the party for the elections and accordingly decide to award party tickets on the basis of confidential report.

1065. Strengthening the internal audit system within the organization is another key requirement for detection of embezzlement in the public sector expenditures.

1066. Civil Service Reforms are required in respect of recruitment, promotion on merit and reduce patronage and nepotism.

1067. Pakistan's industrial sector is suffering due to tax evasion by showing less production than actual and under-invoicing of imports etc. It is extremely necessary for the print and electronic media to highlight these issues for finding ways to contain these malpractices.

1068. A brief financial examination of big financial lords of Pakistan will reveal the necessity of getting their money trail in almost every case which means requirement of specialists in different financial fields as well as their time availability for deep analysis ,nearly an

147

impossible target. In this kind of scenario, a comprehensive form titled “MONEY TRAIL FORM “may be designed in consultations with all the stakeholders for submission to full-time JITs to be posted in all capital cities of Pakistan 1069. Surprisingly, the website of ACE, Punjab, carries its vital Performance Report unlike ACEs of other provinces. It is extremely necessary that all the ACEs of other provinces should be directed by their Chief Ministers to provide similar information in a tabulated form.

1070. An analysis of the ACE, Punjab, shows that a total of 243727 complaints were received from 2005 to 2015 or over a period of 11 years. There were only 635 convictions as against 20246 cases filed, which means only 3.1percent which is extremely poor and certainly requires revolutionary improvement.

1071. Another tragic story of corruption or illegal work is that of 4252 top students of Intermediate Examination of Punjab Boards, who are the future civil servants, doctors, or engineers or computer specialists who managed to obtain two laptops through manipulation costing Rs.60 million to the Government. It is extremely important that special lectures are delivered to the intermediate students in the subject of honesty and morality etc.

1072. The latest 2016-17 estimates that there are only1.2million income tax return filers, which constitute only 0.6% of the country's population. Instead of increase in the no. of tax payers,the FBR Report says that 21800 big tax payers and 100000 rich individuals have disappeared from the tax net in 2016 causing a decrease of Rs, 12 billion. (Daily “The News" 7-5-2017). The challenge facing FBR is extremely stupendous and therefore, extraordinary efforts are required to improve its performance.

1073. Another hard evidence of the financial immorality is that even in private housing schemes, purchases are made without requirements at inflated prices, about 5-10 percent of the residents do not meet their monthly financial obligations with respect to services enjoyed by them like road maintenance, security and water bills etc. and the management of the housing society is afraid to cut their connections because of fear to their life and it should be provided security.

1074. An opinion survey of NAB and FIA should be conducted of all those connected with these agencies or have or had contacts, directly or indirectly, such as complainants, alleged accused, convicted, witnesses, lawyers and judges etc. for identification of weaknesses and further improvements in their working and efficiency.

1075. The FBR should advise the elite rich class of the country to save their major financial transactions in their laptops and USBs to become their own financial historians as they may be required to file their money trails one day in future.

1076. A new chapter titled “Money Trail Modus Operandi" may be written by some financial analyst along with a money launderer and added in the BBA and B.Com classes textbook for students.

1077. The young people may be mobilized to lead the battle against corruption such as they should become members of a website titled “Accountability Labs" to promote accountability in our society.

1078. Two high profile terrorists belonging to a banned terrorist outfit, Lashkar-e- Jhangvi (LeJ),managed to escape from a court room in connivance of the prison staff of the Karachi Central Jail in June,2017, clearly indicating corruption. Pakistani prisons are overcrowded.

Karachi Jail has a capacity of 2400 prisoners but it is accommodating 6000 prisoners, or 2.5 times more than its capacity. (Daily "The News" 25-6-2017). In order to curb corruption in the prisons, there is a strong need to raise accommodating capacity of the prisoners along with checking techniques of the prisoners. A Special Prison Reforms Commission may be formed to look into the issues of the prisons.

1079. The FBR must take all possible measures on priority basis to enhance documentation of the economy especially facilitating small and medium traders and manufacturers to join the system through simplification of computerized tax filing system with their less contacts with the tax officials.

148

1080. A recent excellent direction by NAB to all the offices of the Government to form their own Corruption Prevention Committees to improve transparency, meritocracy, fair play and compliance with the prescribed rules and regulations needs to be implemented in letter and spirit.

1081. According to a former PTI leader, Javed Hashmi, Imran Khan sold a party ticket to a Patwari for Rs.200 Million. Such a serious allegation needs to be thoroughly probed by NAB/ FIA so that this kind of practice could be stopped in future.

1082. The FBR has issued a list of 88 countries, which will automatically swap financial information of their citizens, but the list mysteriously does not include vital heavens of UAE and Panama for Pakistani financial masterminds. It is extremely important to immediately hold discussions with the authorities of UAE and Panama for similar arrangements.

1083. There is a strong need to establish an online association of past and present corrupt, smugglers and money launderers etc. to be called Pakistan Reformers Club, which will share their experience with fictitious names and addresses for the policy makers thus helping to curb corruption.

1084. 17 parliamentarians have disclosed their investments/assets in foreign countries. They should be directed by the ECP to provide money trials of these investments for examination by JIT to be formed by ECP. 1085. There is a great need for a research book on “Tales of Horrible Corruption” or in Urdu “Ghazab Corruption Ki Ajab Kahani” including stories of super corruption commandos of EOBI etc.

1086. A study should be undertaken to identify all kinds of tax theft, avoidance and evasion etc. (including income tax, sales, excise, and other taxes) adopted by the businessmen, industrial and other classes and recommend necessary measures for each tax accordingly.

1087. We must teach people not only to hate corruption but also hate corrupt, money launderers, black money holders, tax evaders and all those who are facilitating them in any manner, directly or indirectly.

1088. All the websites of all Public Accounts Committees of National Assembly and Provincial Assemblies and Senate must be made comprehensive sources of information with detailed tables, year-wise, of last 10 years regarding No. of Paras, amount embezzled, paras cleared, no. of meetings held, amount recovered etc.to enable people know what are their failures and achievements and those with top excellent performance must get national civil awards every year.

1089. According to the Election Commission of Pakistan, Mian Nawaz Sharif and Imran Khan, hold assets of Rs, 162 Crore and 140 Crore respectively obviously based on value at the time of their purchases. These figures need to be revised at current prices besides a specially prepared form Money Trail Form may be filled up by all parliamentarians for their examination by an independent commission to be appointed for necessary action.

1090. The Amnesty Scheme should be completely banned through some legislation for at least 10 years by the Federal Government as it is not fair for those who pay their taxes and reveal their assets and so encourages the non-tax payers, corrupt, smugglers, drug barons etc.

1091. Pakistan's tax potential at Federal level is estimated at Rs. 8 trillion (Daily “The News”, 22-2017). Due to alleged inefficiency of the FBR, we are nowhere near the target. A highpowered committee should ponder over the subject and recommend measures to eliminate malevolent joint venture of the tax officials and tax eligible public.

1092. According to a report in the Daily “The News” (16-07-2013), the country loses Rs. 70 billion annually on account of misdeclaration of imports value by the importers with or without collusion of customs officials. In order to deal with extremely difficult problem, which happens to be a joint venture of public and private sectors, the private importers may be asked to give an undertaking about the true value of imported goods, which if later on found to

149

be wrong, they will have to pay 100% fine over their current value or some similar harsh penalties should be introduced.

1093. In his book titled “Against All Odds-Institution Building in the Real World”, by Dr. Khalid Aftab, former Vice Chancellor of the Government College University, Lahore, a top university of the country, writes his highly painful experience in a corruption case filed by GCU against its employees. In his words, “The experience of dealing with NAB was disappointing. The processes were lazy to say the least. I wrote reminders for early disposal of the case but to no avail. We have to wait for many years before the case was ultimately sent to a NAB Court in Lahore. I appeared as a witness to record my statement in this case. I was called five times before the statement could be recorded. The Court environment left much to be dared. To my disappointment, on one occasion, the judge left the room while the lawyer was crossexamining me and never came back. It was a mockery of judicial system." Such a shabby treatment to a person of spotless integrity and at a so highly prestigious position, not less than a cabinet minister or federal secretary, with teaching and supervising experience of thousands of students and elite academicians, is highly disgusting and repulsive and it shows the country requires gigantic and revolutionary judicial system reforms in terms of efficiency, integrity and honesty for meeting corruption challenge.

1094. The tax variety is very large in Pakistan such as Income tax, GST, capital value, value added tax, central sales tax, service tax, fuel adjustment surcharge, excise duty, custom duty, petrol levy, TDS, stamp duty, agricultural tax, property tax, usher, zakat, capital gains tax, withholding tax, wealth tax, road tax, professional tax and super tax which are part of 37 different local, provincial and federal taxes. More are the no. of taxes, more are the chances of tax dodging and thus more difficult to manage and control. Merging of some taxes may possibly help in tax evasion and corruption curtailment.

1095. There will be no role of NAB regarding corruption cases in Sindh as per the law passed by the Sindh Assembly, which clearly aims at protecting top corrupt supremos. There is a strong need of nullify such acts by the judiciary.

1096. FBR should upload on its website a comprehensive list of tax payments of the last five years in a table form of all the top 10% or elite of the country including industrialists, traders and bureaucrats etc. and seek open public support in evaluation of their statements.

1097. Ostentatious, frugal and lavish life-style, big limousines, and frequent foreign tours including Hajj and Umra etc. are major evidences of illegitimate personal incomes, bribery, extortions, cronyism, nepotism, patronage, embezzlement, and rent seeking income. Surprise raids on their residences or business places should be considered by FBR or FIA or NAB. 1098. The rich Pakistani expatriates should be guided not to provide funding to Pakistan's political parties as these are too rich, even having billionaires, and don't need their money and they also make lot of money while awarding party tickets for the elections. Instead, they should launch a fund to be called "Anti -Corruption Fund" for NAB or FIA or launching their own NGO for this great aim.

1099. The basic needs of population of around 150-175 million cannot be met because of serious constraints facing the economy, and the greed of rest of the population of around 25-50 million, although has no end, can be somewhat controlled through serious efforts by Islamic and moral teachings as well as through ethical campaigns with personal examples by the top elite class of the country.

1100. It should be made compulsory for all foreign ticket buyers to provide their NTN or their sponsors’ NTN otherwise withholding tax will be charged.

1101. Pakistan will have to become a nation of "Incorruptiblics" like the Danish, “workaholics” like the Japanese, honest like the British, unlike "alcoholics" of Belarus and “non-alcoholics” like Pakistanis.

1102. An alternative new accountability mechanism that brings all pillars of state without any exception under its net should be worth consideration.

150

1103. Only those from the private legal practitioners community should be appointed judges who solemnly state on the Holy Book that they have never knowingly defended a corrupt or a financial criminal in their professional career.

1104. There is a close beneficial relationship and links between your business growth and while you remain in power. Income and Expenditure as well as Assets Statements of yours, your family, your nearest relations, your dependents, and your servants, etc.in Pakistan and abroad on the day you take over power in any capacity and the day you leave the position, should be submitted to FBR, ECP and NAB for scrutiny and necessary recommendations etc.

1105. A true stories book of corrupt and fraudsters entitled" FROM RAGS TO RICHES" or “FROM PAUPER TO PROSPERITY” or “CONFESSIONS OF THE CORRUPT” may be sponsored by NAB/FIA and published for reading their mindsets for forming counter action plans accordingly.

1106. A Money Trail Section vis -a-vis particularly regarding assets acquisition may be opened in FBR to provide guidance to the taxpayers who are now expected to provide this information in future.

1107. One exclusive comprehensive Website with detailed information /data of all the anti corruption related bodies or organizations in Pakistan may be designed by the Federal Ministry of Interior and uploaded for a quick and ready reference for policy makers, researchers and political leaders.

1108. There is a strong need to comprehend the crooked practices employed by the lawyers to fleece their innocent clients and there is a need for a research book on this subject for guidence of public.

1109. All about 3 million tax eligible Pakistanis may be advised by FBR to make a separate File and keep records of all their major inflows and outflows as well as investments made in Pakistan and abroad as they may, one day, be required to furnish their money trails. We should learn from the experience of our former PM. 1110. There should be accountability of all including man–in–the–street to meet the demand of across-the -board accountability by requesting them to submit their money trails, which, in effect, have turned into MONEY TRIALS, to FBR/NAB. 1111. A psychological research is required to be undertaken by some university (preferably GC University, Lahore, Department of Psychology) to study the mind of corrupt persons-before, after taking bribe over a length of time and later age- to know what they feel like, or have any regrets over indulging in this business etc.so that appropriate counter measures could be undertaken.

1112. The judgement of the Supreme Court against Mian Nawaz Sharif and his family is no doubt of historical value. This judgement should hopefully discourage corruption at the highest level but the corrupt leadership will become very careful in this game and will be leaving no traces behind to be caught in future. Let NAB or FBR direct the top elite of the country in different professions and services (about 10000 personalities) to send their money trails for the last 20 to 25 years for sake of equity and justice for all.

1113. All the Members of Parliament of Pakistan should be directed by ECP to provide their Aqamas for comparison with their Wealth and Income Statements.

1114. It has been noticed that some corrupt people impose a self-ban on corruption at a later age or near their retirement. This phenomenon needs to be studied so as to know the reasons or factors behind the revolutionary change so that suitable measures could be found to nip the evil in the bud or bring the change right from the start.

1115. The basis of the Supreme Court Judgement for disqualifying Nawaz Sharif is hiding his salary or undrawn salary and hence not being honest under Article 62 (1)(f) of the Constitution. This basis should be applied without any distinction to all the current parliamentarians and a special commission may be constituted to examine their Income and

151

Wealth Statements of the last 25 years and invite information from the public to meet the ends of justice and equity for all.

1116. Non-submission of the Income Statements for any reason amounts to hiding your income, within the taxable limit or outside, by any parliamentarian, straightway attracts Article 62(1)(f) and should face disqualification.

1117. The subject of "Meeting Greed through Justifiable Means" should be frequently discussed in the electronic media.

1118. According to English Dictionary, Merriam Webster, NAB means, "to catch–get quickly– seize suddenly.”But the general experience of the complainants with NAB is that it is quite slow and taking years in completing enquiries in ordinary cases. NAB must improve its working efficiency as per its dictionary meaning. It should provide a list of all pending cases with no.of months and specific reasons of delay.

1119. FBR may undertake highly secret and restricted sting operation against non-issuance of receipts to their customers, patients and clients by the professionals like architects, lawyers, land mafia, consultants and builders etc. and so hide their income as hiding income or salary is an offence as per judgement of the Supreme Court of Pakistan.

1120. The FBR and NAB may start a campaign in the press and electronic media on the subject of "Don't hide your drawn and undrawn income or salary" in your Annual Income Tax Return, otherwise you could face service termination or some major penalty or life ban for contesting elections etc.

1121. Pakistanis are estimated to have 200 billion dollars in the Swiss Banks at a very low rate of return as against Pakistan’s external debt of $58.4 billion as in end of March, 2017. They should be provided some incentives to bring their money back to Pakistan through some mutually agreed terms.

1122. In the light of the Supreme Court judgement, the FBR may allow the tax and non-tax filers to submit their new or revised Income and Wealth Tax Statements of the last 10 to 20 years to avoid facing major penalties.

1123. No stone should be left unturned by NAB/FIA in winning high profile cases involving losses of billions of rupees to this begging economy.

1124. In the last fiscal year, 2016, 12 Senators, 45 MNAs and 110 MPAs or a total of 167 public representatives did not file their tax returns (Daily "92" dt.31-7-2017) which can be interpreted as hiding their income as per judgement of Supreme Court of Pakistan. A public awareness campaign may be launched about the significance of filing correct tax returns.

1125. It appears the overall system of fighting corruption combat from anti corruption agencies to accountability courts is overcrowded and saturated. There is a huge gap between the availability of physical, financial, human, technical, intellectual, moral and legal resources as against their requirements. As there should be no sacred cows and ruthless accountability is the need of the hour, multiple times raise is required to strengthen their different areas to face the monstrous challenge and achieve high conviction rate.

1126. A joint research study should be undertaken by Pakistan Bar Council, Pakistan Tax Advisors Association and All Pakistan Tax Bar Association regarding the long-term implications and applications of the Supreme Court Judgement in the Nawaz Sharif Case.

1127. FBR may initiate a massive campaign in the press and electronic media calling the people to request and insist for payment receipts for services rendered by the professionals such as lawyers, architects and consultants besides requesting these professionals not to hesitate while issuing the receipts and be Role Models,Idols and Exemplars for this desperately famished nation.

1128. A List of President Asif Ali Zardari's Assets", as given in the website of "siasat:pk", (hopefully, it is not true) is incredible. Such research undertakings based on authentic data should be encouraged and funded by FBR/NAB/FIA/ACEs.

152

1129. MBA/M.Phil/Ph.D. Students of Economics and Business Administration Departments of the universities in Pakistan should be assigned research projects in latest subjects like money laundering, tax havens, hiding illegal wealth, money trail and money trial, Aqama, Off-shore Cos., etc.to assist Pakistani investigators in understanding the latest and highly advanced corruption technology.

1130. The National Assembly / State Bank of Pakistan may consider a proposal of approving printing a short statement/message of Quaid-Azam on a Currency Note regarding corruption.

1131. For speedy justice, all the Districts Bar Associations should commit that they will not go on strike for not more than 1 day per month under any circumstances or reasons.

1132. The FBR may publish a highly useful study to be titled, "TAX MORALITY RANKING

BY DISTRICT "showing district-wise and year-wise ranking data from 2011 to 2016 of Pakistan in respect of Total Tax Receipts, No.of Tax Filers, No.of Non-Tax Filers, Estimated Total Population, Filers and Non-Filers per Thousand Population, Registered Factories and Registered Motor Vehicles and Literacy Rates etc.

1133. An Ahadith of Hazrat Muhammad (PBUH), which says,"The Almighty neither accepts sadqa or charity nor prayer of a corrupt person"needs to be massively publicised in both press and electronic media.

1134. The "Sadiq"and "Ameen " concept should be made applicable across-the -board without exception by including all past and present parliamentarians and civil and other officials and their staff by obtaining and examining their Income and Wealth Statements of the last 20 years or so and tripling the staff and supporting facilities of FBR. 1135. Volume of work of NAB can easily be imagined fsrom the fact that its 179 mega corruption cases involve a sum of Rs. 1200 billion (Daily " The News", 11-8-2017) which requires the resources of such agencies should substantially be enhanced within the same fiscal year through some formula from time to time.

1136. The FBR should undertake a secret study in collaboration with Aqama giving countries' governments in order to find ways to stop this system, which helps hide illegal wealth of a poor country.

1137. Income Tax Filers went up from 0.768 million in 2013 to 1.216 million in 2016,according to Daily "The News", 11-8-2017.Pakistan should follow the Turkish example to increase the tax revenues and No.of Tax Payers by changing our strategy and following persuasion and writing love letter to a non -filer or a tax dodger without using harassment or threatening technique or tone and indirectly hinting at knowing his undisclosed assets or income sources.

1138. Financial corruption breeds moral corruption and vice versa. Through true stories in the electronic media, this message should be conveyed to the people.

1139. Pakistan has been ranked at the 90th position out of 91 countries in respect of the income pension coverage, according to the Global Age Watch Index. (Daily "The News"11-8-2017).

Such lugubrious low position coverage promotes corruption as the Government employees try to secure their post retirement future through accumulating additional assets and resources. It is, therefore, imperative to raise their pension benefits as a part of the anti-corruption movement.

1140. Nobody is angel but you have to act fairly and honestly to the maximum level in all respects as far as possible as your goal in your official conduct except some insignifiacnt instances such as committing some small favour or acting unfairly or hiding your small inflow or gifts from here or there or using telephone facility or stationary items.

1141. All lawyers must be trained and guided to attain high moral standards so that they should refuse to defend financial criminals as such income is "haram" without an iota of doubt and their Islamic values and conscious should never approve this income source.

1142. All the Members of Parliament -Senate,National Assembly and 4 Provincial Assembliesshould be directed by the respective Speaker to compulsorily submit a 25-Point"Corruption Management Plan"within one month.A Joint Implementation Committee consisting of

153

representatives of NAB,FIA,FBR,ACEs, etc.headed by the former Supreme Court Judge, Jawwad S.Khawaja or the Nuclear Godfather, Dr.A.Q.Khan, should examine all these proposals and make recommendations and oversee their phase-wise implementation with timeline and impose penalty or punishment in case of non-execution by the concerned agency.

1143. FBR must ensure that its officers holding enquiries against the elite VVIPs are somehow fully protected against their vindictive actions.

1144. NAB should ensure that the alleged accused persons facing enquiries must not manage to flee abroad under any circumstances through variety of precautionary measures.

1145. We should set up a Corruption Mindset Reforms Commission which will make exhaustive studies of our economic, political ,social,administrative and psychological set-up and make recommendations to change our philosophy of life.

1146. Economic uncertainty is expected in Pakistan because of President Trump 's tirade against Pakistan which could lead to depreciation of the PAK Rupee, drop in economic and military assistance to Pakistan from USA and adverse impact on Pakistan's economic growth rate which could lead to corruption growth and so it is absolutely necessary that Pakistan must satisfy the American administration through all diplomatic and and non diplomatic sources and non stop efforts and measures.

To finally conclude, despite our large no. of recommendations and suggestions with their implementation largely very difficult or unlikely for variety of reasons , factors and conditions in Pakistan, corruption eradication up to a reasonable extent will remain a distant dream and hence "MISSION IMPOSSIBLE ".

154

ANNEXURES

Rank 2016

Country

1

Denmark

90

91

92

91

90

1

New Zealand

90

88

91

91

90

3

Finland

89

90

89

89

90

4

Sweden

88

89

87

89

88

5

Switzerland

86

86

86

85

86

6

Norway

85

87

86

86

85

7

Singapore

84

85

84

86

87

8

Netherlands

83

87

83

83

84

9

Canada

82

83

81

81

84

10

Germany

81

81

79

78

79

10

Luxembourg

81

81

82

80

80

81

81

78

76

74

79

79

80

81

85

13

United Kingdom Australia

14

Iceland

78

79

79

78

82

15

Belgium

77

77

76

75

75

15

Hong Kong

77

75

74

75

77

17

Austria

75

76

72

69

69

18

United States

74

76

74

73

73

19

Ireland

73

75

74

72

69

20 21

Japan Uruguay

72 71

75 74

76 73

74 73

74 72

22

Estonia

70

70

69

68

64

23

France

69

70

69

71

71

24 24

Bahamas Chile

66 66

N/A 70

71 73

71 71

71 72

10

ANNEXURE-I CORRUPTION PERCEPTIONS INDEX 2016 2015 2014 2013 2012 Score Score Score Score Score

Region Europe and Central Asia Asia Pacific Europe and Central Asia Europe and Central Asia Europe and Central Asia Europe and Central Asia Asia Pacific Europe and Central Asia Americas Europe and Central Asia Europe and Central Asia Europe and Central Asia Asia Pacific Europe and Central Asia Europe and Central Asia Asia Pacific Europe and Central Asia Americas Europe and Central Asia Asia Pacific Americas Europe and Central Asia Europe and Central Asia Americas Americas

155

24

United Arab Emirates

66

70

70

69

68

Middle East and N. Africa

27

Bhutan

65

65

65

63

63

Asia Pacific

28

Israel

64

61

60

61

60

29

Poland

62

62

61

60

58

29

Portugal

62

63

63

62

63

31

Barbados

61

N/A

74

75

76

31

Qatar

61

71

69

68

68

31

Slovenia

61

60

58

57

61

31

Taiwan

61

62

61

61

61

35

Botswana

60

63

63

64

65

35

Saint Lucia Saint Vincent and the Grenadines

60

N/A

N/A

71

71

Middle East and North Africa Europe and Central Asia Europe and Central Asia Americas Middle East and North Africa Europe and Central Asia Asia Pacific Sub Saharan Africa Americas

60

N/A

67

62

62

Americas

38

Cape Verde

59

55

57

58

60

38

Dominica

59

N/A

58

58

58

38

Lithuania

59

61

58

57

54

41 41

Brunei Costa Rica

58 58

N/A 55

N/A 54

60 53

55 54

41

Spain

58

58

60

59

65

44

Georgia

57

52

52

49

52

44

Latvia

57

55

55

53

49

46

Grenada

56

N/A

N/A

N/A

N/A

47

Cyprus

55

61

63

63

66

47

Czech Republic

55

56

51

48

49

47

Malta

55

56

55

56

57

50

Mauritius

54

53

54

52

57

35

Sub Saharan Africa Americas Europe and Central Asia Asia Pacific Americas Europe and Central Asia Europe and Central Asia Europe and Central Asia Americas Europe and Central Asia Europe and Central Asia Europe and Central Asia Sub Saharan Africa

156

50

Rwanda

54

54

49

53

53

Sub Saharan Africa

52

Korea (South)

53

56

55

55

56

Asia Pacific

53

Namibia

52

53

49

48

48

54

Slovakia

51

51

50

47

46

55

Croatia

49

51

48

48

46

55

Malaysia

49

50

52

50

49

57

Hungary

48

51

54

54

55

57

Jordan

48

53

49

45

48

57

Romania

48

46

43

43

44

60

Cuba

47

47

46

46

48

60

Italy

47

44

43

43

42

62

Sao Tome and Principe

46

42

42

42

42

62

Saudi Arabia

46

52

49

46

44

64

Montenegro

45

44

42

44

41

64

Oman

45

45

45

47

47

64

Senegal

45

44

43

41

36

64

South Africa

45

44

44

42

43

64

Suriname

45

36

36

36

37

69

Greece

44

46

43

40

36

70

Bahrain

43

51

49

48

51

70

Ghana

43

47

48

46

45

72

Burkina Faso

42

38

38

38

38

72

Serbia

42

40

41

42

39

72

Solomon Islands

42

N/A

N/A

N/A

N/A

Sub Saharan Africa Europe and Central Asia Europe and Central Asia Asia Pacific Europe and Central Asia Middle East and North Africa Europe and Central Asia Americas Europe and Central Asia Sub Saharan Africa Middle East and North Africa Europe and Central Asia Middle East and North Africa Sub Saharan Africa Sub Saharan Africa Americas Europe and Central Asia Middle East and North Africa Sub Saharan Africa Sub Saharan Africa Europe and Central Asia Asia Pacific

157

75

Bulgaria

41

41

43

41

41

75

Kuwait

41

49

44

43

44

75

Tunisia

41

38

40

41

41

75

Turkey

41

42

45

50

49

79

Belarus

40

32

31

29

31

79 79 79

Brazil China India

40 40 40

38 37 38

43 36 38

42 40 36

43 39 36

83

Albania

39

36

33

31

33

39

38

39

42

42

39

41

38

38

38

83

Bosnia and Herzegovina Jamaica

83

Lesotho

39

44

49

49

45

87 87

Mongolia Panama

38 38

39 39

39 37

38 35

36 38

87

Zambia

38

38

38

38

37

90 90

Colombia Indonesia

37 37

37 36

37 34

36 32

36 32

90

Liberia

37

37

37

38

41

90

Morocco

37

36

39

37

37

37

42

45

44

43

36

32

34

34

35

83

95

The FYR of Macedonia Argentina

95

Benin

36

37

39

36

36

95

El Salvador

36

39

39

38

38

95

Kosovo

36

33

33

33

34

95 95

Maldives Sri Lanka

36 36

N/A 37

N/A 38

N/A 37

N/A 40

101

Gabon

35

34

37

34

35

101

Niger

35

34

35

34

33

101 101 101

Peru Philippines Thailand

35 35 35

36 35 38

38 38 38

38 36 35

38 34 37

90

Europe and Central Asia Middle East and North Africa Middle East and N. Africa Europe and Central Asia Europe and Central Asia Americas Asia Pacific Asia Pacific Europe and Central Asia Europe and Central Asia Americas Sub Saharan Africa Asia Pacific Americas Sub Saharan Africa Americas Asia Pacific Sub Saharan Africa Middle East and North Africa Europe and Central Asia Americas Sub Saharan Africa Americas Europe and Central Asia Asia Pacific Asia Pacific Sub Saharan Africa Sub Saharan Africa Americas Asia Pacific Asia Pacific

158

101

Timor-Leste Trinidad and Tobago

35

28

28

30

33

Asia Pacific

35

39

38

38

39

Americas

108

Algeria

34

36

36

36

34

Middle East and North Africa

108

Côte d´Ivoire

34

32

32

27

29

108

Egypt

34

36

37

32

32

108

Ethiopia

34

33

33

33

33

108

Guyana

34

29

30

27

28

113

Armenia

33

35

37

36

34

113 113

Bolivia Vietnam

33 33

34 31

35 31

34 31

34 31

116

Mali

32

35

32

28

34

116

Pakistan

32

30

29

28

27

116

Tanzania

32

30

31

33

35

116

Togo

32

32

29

29

30

31

33

32

29

32

Americas

31

32

33

35

32

Americas Sub Saharan Africa Europe and Central Asia Sub Saharan Africa Americas Asia Pacific Americas Europe and Central Asia Americas Sub Saharan Africa Middle East and North Africa

101

120

Dominican Republic Ecuador

120

Malawi

31

31

33

37

37

123

Azerbaijan

30

29

29

28

27

123

Djibouti

30

34

34

36

36

123 123 123

Honduras Laos Mexico

30 30 30

31 25 35

29 25 35

26 26 34

28 21 34

123

Moldova

30

33

35

35

36

123

Paraguay

30

27

24

24

25

123

Sierra Leone

30

29

31

30

31

131

Iran

29

27

27

25

28

131

Kazakhstan

29

28

29

26

28

120

Sub Saharan Africa Middle East and North Africa Sub Saharan Africa Americas Europe and Central Asia Americas Asia Pacific Sub Saharan Africa Asia Pacific Sub Saharan Africa Sub Saharan Africa

Europe and Central Asia

159

131

Nepal

29

27

29

31

27

131

Russia

29

29

27

28

28

131

Ukraine

29

27

26

25

26

136

Guatemala

28

28

32

29

33

136

Kyrgyzstan

28

28

27

24

24

136

Lebanon

28

28

27

28

30

136

Myanmar

28

22

21

21

15

136

Nigeria

28

26

27

25

27

136

Papua New Guinea

28

25

25

25

25

142

Guinea

27

25

25

24

24

142

Mauritania

27

31

30

30

31

27

31

31

30

31

26

25

25

27

26

Asia Pacific Sub Saharan Africa Middle East and North Africa Sub Saharan Africa Asia Pacific Sub Saharan Africa Sub Saharan Africa Sub Saharan Africa Sub Saharan Africa Americas Europe and Central Asia Sub Saharan Africa Sub Saharan Africa Europe and Central Asia Sub Saharan Africa Asia Pacific

145

Mozambiqu e Bangladesh

145

Cameroon

26

27

27

25

26

145

Gambia

26

28

29

28

34

145

Kenya

26

25

25

27

27

145

Madagascar

26

28

28

28

32

145

Nicaragua

26

27

28

28

29

151

Tajikistan

25

26

23

22

22

151

Uganda

25

25

26

26

29

153

Comoros

24

26

26

28

28

154

Turkmenista n

22

18

17

17

17

154

Zimbabwe

22

21

21

21

20

156

Cambodia Democratic Republic of Congo

21

21

21

20

22

21

22

22

22

21

Sub Saharan Africa

Uzbekistan

21

19

18

17

17

Europe and Central Asia

142

156 156

Asia Pacific Europe and Central Asia Europe and Central Asia Americas Europe and Central Asia Middle East and North Africa Asia Pacific Sub Saharan Africa

160

159

Burundi

20

21

20

21

19

Sub Saharan Africa

159

Central African Republic

20

24

24

25

26

Sub Saharan Africa

159

Chad

20

22

22

19

19

159

Haiti Republic of Congo

20

17

19

19

19

20

23

23

22

26

164

Angola

18

15

19

23

22

164

Eritrea

18

18

18

20

25

166

Iraq

17

16

16

16

18

166

17

17

19

20

19

16

17

19

19

25

169

Venezuela GuineaBissau Afghanistan

15

11

12

8

8

170

Libya

14

16

18

15

21

170

Sudan

14

12

11

11

13

170

Yemen

14

18

19

18

23

173

Syria

13

18

20

17

26

174

Korea (North)

12

8

8

8

8

175

South Sudan

11

15

15

14

N/A

176

Somalia

10

8

8

8

8

159

168

Sub Saharan Africa Americas Sub Saharan Africa Sub Saharan Africa Sub Saharan Africa Middle East and North Africa Americas Sub Saharan Africa Asia Pacific Middle East and North Africa Middle East and North Africa Middle East and North Africa Middle East and North Africa Asia Pacific Sub Saharan Africa Sub Saharan Africa

Source: Transparency International

161

ANNEXURE-II PAKISTAN’S COMPARATIVE STRATEGIC RANKINGS Sr. No. 1 2 3 4

Item

Pakistan

Global peace index

115th out of 120 countries

Level of Economic Freedom 2005

101 out of 141 countries

Quality of Life Index

93rd lowest in the World

GDP / Capita at PPP

101st lowest in the World

Uner-5 Morality Rate

47th highest out of 200 countries

7

8 9

28 29

Item Military expenditure as % of GDP

Pakistan

Globalization Index

56th out of 62 countries

Corruption perception Index Global Integrity Index Global Hunger Index

30 Average No. of Births (4.7M)

4 highest in the World

No. of persons undernourished (35.2M)

3rd highest in the World

Global Competitiveness Index

94th out of 125 countries

31 32

33

Prevalence of Low Birth Weight (25%)

4 highest in the World

Prevalence of Anemia among Women (37%)

44th highest in the World

No. of Persons / Room (3)

Highest in the World

Forested Land (3.1%)

175 out of 193 countries

th

34

35

12 13

27

th

10 11

26

st

5 6

Sr. No.

36

Life satisfaction Research and Development Personnel Karachi and Lahore Quality of life ranking Business Environment No. of Motorcars / 1000 population Gini– Coefficient GDP / Revenues

37 Newspaper Circulation / 1000 persons

131st out of 51 countries

38

Press Freedom Index 2006

23rd top spender

172out of 200 countries 65th position out of 87 countries 50th Most hundred country out of 119 countries 87th position out of 90 countries 83rd out of 119 countries 170th and 163rd out of 215 cities 72nd Worst out of about 100 countries 9 cars as against 619 in New Zealand (1st position).

104th out of 128 countries 64th out of 156 countries / corporations 157th position out of 168 countries

162

14 15 16

Armed Forces Personnel

6th highest out of 166 countries

Transport Vehicles /Km (1:58)

95th position out of 137 countries

CDP in Current Dollars

43rd position

Population

6th in 2005, 5th in 2015& 4th in 2050

17 18

19

Karachi and Lahore Rich Cities Status Slums Population (as % of Urban Population 73.6%) or (about 36 m (2001)) Credit Rating

81st& 121st out of 151 cities

22 23 24 25

40 41 42 43

27th out of 200 countries

86th position 45

Exchange Rate vis-Ă -vis India Rupee Doing Business Index Failed States Index Motor Vehicles / 100 populations Murder / lakh population

77th position out of 110 countries 165th position out of 180 countries

Happy Planet Index

112th out of 50 countries

Legatum Prosperity Index

49th out of 50 countries

134thout of 177 countries 84th out of 122 countries

44

20

21

39

Management Performance Index ICT Diffusion Index Human Development Index Networking Readiness Index

US$ 40, Euro 56, L80 &1.50 Pak Rupee th

76 position out of 178 countries 12th top out of 177 countries 110th lowest position out of 134 countries 21st lowest out of 91 countries

46

Economical & Political Transformin g Index Travel & Tourism Competitiven ess

84th out of 113 countries 103rd out of 124 countries

47 48

Sources: Various International Surveys

163

ANNEXURE-III

ANTI-CORRUPTION LINKS

Below are links to some organizations fighting corruption at the regional or international level.

Please visit their sites and learn more about their efforts.

Anti-Corruption Intergovernmental Organizations | Other International Organizations | Other Organizations by Country: Albania | Argentina | Austria | Australia | Brunei | Brazil | Bulgaria | China | Columbia | Ecuador | El Salvador | Hong Kong | India| Indonesia | Italy | Korea | Malaysia | Mexico | New Zealand | Paraguay | Peru | Phillipines | Portugal | Sierra Leone | Singapore| South Africa | Thailand | UK | USA | Anti-Corruption Intergovernmental Organizations: African Development Bank Group African Parliamentarians Network Against Corruption (APNAC) African Union Anti-Corruption Network (ACN) for Eastern Europe and Central Asia Asian Development Bank (ADB) ADB/OECD Anti-Corruption Initiative Asia-Pacific Economic Cooperation Council of Europe European Anti- Fraud Office (OLAF) European Commission European Partners Against Corruption (EPAC) Global Organization Against Corruption (GOPAC) GOPAC-Europe International Chamber of Commerce International Group for Anti-Corruption Coordination (IGAC) International Monetary Fund Interpol Organization of American States Organization for Economic Cooperation and Development (OECD) Resource Center of Regional Anti-Corruption Initiative for South East Europe Southern African Development Community (SADC) United Nations Economic Commission for Africa (UNECA) UN Global Compact World Bank Stolen Asset Recovery Initiative (STAR) - World Bank and UNODC World Economic Forum Other International Organizations: International Anti-Corruption Academy (IACA) International Association of Anti-Corruption Authorities (IAACA) International Business Leaders Forum (IBLF) Independent Commission Against Corruption (ICAC) TRACE International Transparency International

164

ANNEXURE-IV RANK

FINANCIAL SECRECY INDEX-2015 Secrecy Jurisdiction FSI Value Global Scale Weight Score

1

Switzerland

1,466.10

73

5.625

2

Hong Kong

1,259.40

72

3.842

3

USA

1,254.80

60

19.603

4

Singapore

1,147.10

69

4.28

5

Cayman Islands

1,013.20

65

4.857

6

Luxembourg

817

55

11.63

7

Lebanon

760.2

79

0.377

8

Germany

701.9

56

6.026

9

Bahrain

471.4

74

0.164

10

United Arab Emirates (Dubai)

440.8

77

0.085

11

Macao

420.2

70

0.188

12

Japan

418.4

58

1.062

13

Panama

415.7

72

0.132

14

Marshall Islands

405.6

79

0.053

15

United Kingdom

380.2

41

17.394

16

Jersey

354

65

0.216

17

Guernsey

339.4

64

0.231

18

Malaysia (Labuan)

338.7

75

0.05

19

Turkey

320.9

64

0.182

20

China

312.2

54

0.743

21

British Virgin Islands

307.7

60

0.281

165

22

Barbados

298.3

78

0.024

23

Mauritius

297

72

0.049

24

Austria

295.3

54

0.692

25

Bahamas

273.1

79

0.017

26

Brazil

263.7

52

0.678

27

Malta

260.9

50

0.99

28

Uruguay

255.6

71

0.037

29

Canada

251.8

46

1.785

30

Russia

243.3

54

0.397

31

France

241.9

43

3.104

32

Isle of Man

228.6

64

0.068

33

Liberia

218.2

83

0.006

34

Bermuda

217.7

66

0.042

35

Cyprus

213.9

50

0.518

36

Liechtenstein

202.4

76

0.01

37

Ireland2

187.4

40

2.313

38

Belgium2

181.2

41

1.863

166

AUTHORS’S PROFILE

A 1. a) b) c) d) e) f) g)

Government College University, Lahore Director, Planning & Development M.Phil. Economics Students Research Thesis Supervisor Member, University Purchase Committee Member, University Works Committee In charge, Career Guidance and Placement Centre In charge, Research Projects Convener, Project Monitoring Committee

2. Chief Economist / General Manager (Planning),Punjab Industrial Development Board, (PIDB), Lahore.

3. Subject Specialist (Economics and English), Punjab Textbook Board, Lahore.

4. Research and Statistical Officer, Lahore Chamber of Commerce and Industry, Lahore 5. Member, Sick Units Committee, Government of the Punjab 6. Member, Industrial Policy for Punjab, Government of the Punjab 7. Member, Industrial Technology Policy, Government of Pakistan 8. Author, Weekly ‘’Investment Guide’’, Daily ‘’The Pakistan Times’’ Lahore 9. Economic Advisor, DESCON Group of Companies Lahore.

10. Consultant, Punjab Economic Research Institute, Lahore.

11. Member, Board of Directors, Pattoki Sugar Mills, Pattoki 12. Co.opt. Member, Working Group on Promotion of Investment, Federal Ministry of Finance B Estimated Total No. of Economics Research Studies, PC1s, Publications, Articles, Projects, Textbooks of English and Economics and Industrial and Business Feasibility Studies, etc.

Nearly 350