IMF warns corruption in Pakistan remains “persistent and corrosive,” undermining economy and governance

ISLAMABAD —Pakistan 

Report by Muhammad Saleem 

The International Monetary Fund (IMF) has issued a stark warning that corruption in Pakistan remains “persistent and corrosive,” permeating every tier of governance and inflicting long-term economic damage far greater than the Rs5.3 trillion recovered by the National Accountability Bureau (NAB) over the last two years.

In its latest assessment, the Fund highlighted that systemic weaknesses — from elite capture in major sectors such as sugar, to vulnerabilities in the judicial system, regulatory bodies, and public procurement mechanisms — continue to distort markets, erode public trust, and weigh heavily on investment flows.

The IMF cautioned that these entrenched governance failures are discouraging both domestic and foreign investors, contributing to repeated cycles of economic instability.

Pakistan’s recurring reliance on IMF support also came under renewed scrutiny. The country has approached the IMF 25 times since independence, a pattern the Fund says reflects “deep structural challenges,” chronic fiscal mismanagement, and an urgent need for governance reforms.

Economists note that without decisive institutional strengthening, transparency in public spending, and reforms to curb political interference, Pakistan risks remaining trapped in a perpetual cycle of bailouts, rising debt, and sluggish growth.