Signs of Corruption
Signs of Corruption: IMF’s report on corruption stresses one main point: transparency helps fight corruption. Transparency is not the full solution, but it is effective and easy to apply. The fight against corruption is difficult. The report hints at problems but avoids saying them directly. It states that the most harmful corruption comes from powerful groups. These groups influence major economic sectors. Some are even owned by the state. The report says this without naming anyone, but the message is clear.
BOI’s New Powers
Board of Investment (BOI) received new powers in 2023. These powers let the BOI tell the federal government to relax rules or give immunity for certain projects. These powers appear in Articles 10E, 10F, and 10G of the BOI Amendment Act. The IMF report says we need more transparency to see how these powers work. It also says these rules create a system that allows special projects to avoid regulations and protects officials from responsibility.
Misuse Risks
Exemptions from rules can weaken the country’s legal and regulatory system. The report warns that people can misuse these powers. The best solution is to avoid giving such powers at all. If the powers exist, the government should limit them with clear rules. At the very least, the government should publicly report every use of these powers.
Publish Reports
It says the Special Investment Facilitation Council should publish its first annual report now. Since almost two years have passed since its creation, this report is overdue. In this report, the Council should list all investments it supported. Additionally, it should list all concessions, such as tax breaks or regulatory changes. Furthermore, it must explain why each concession was granted and how much it was worth. It should also include details about how Article 10F was used. Because this information is simple to release, there is no reason for delay. Once the BOI does this, all bodies with similar powers should follow the same rule. Finally, many departments, especially the FBR and Power Division, should also release real-time data. At present, they are not required to do this.
Special Treatment
Once this culture settles in, people succeed through connections, not ability. The state then holds too much control and makes secret decisions. This environment allows opportunists to act like real businessmen.
Fix Environment
If leaders want real and lasting growth, they must fix this environment. True reform changes the system that shapes economic behavior. When investors ask for protection from tax authorities or courts, they send a warning: they do not trust the system. The wrong response is to give them exemptions. The right response is to fix the tax and judicial systems. Strong institutions build confidence. Special authorities that lift certain people “above the law” only make trust fall further. It is good that the government asked for this corruption study. It will be even better if the government follows the recommendations fully and honestly.
Published in Dawn, 27th November 2025
