PESHAWAR: PTI leader Taimur Saleem Jhagra on Saturday criticised the government and warned that massive corruption and institutional distrust were major obstacles to attracting capital investment into Pakistan, citing the findings of the International Monetary Fund’s (IMF) recently released Governance and Corruption Diagnostic Assessment (GCDA) report.
The report, issued earlier this week, underscored deep-rooted corruption across state institutions and called for an urgent 15-point reform plan aimed at strengthening transparency, fairness and institutional integrity.
Speaking at a press conference in Islamabad alongside former Sindh governor Mohammad Zubair, Jhagra drew attention to a key section of the report, which stated: “The judicial sector, which is organisationally complex, is unable to reliably enforce contracts or protect property rights due to inefficiency, outdated laws and concerns regarding the integrity of judges and judicial staff.”
He said the IMF report made it clear that apprehensions over corruption within the judiciary had discouraged both domestic and foreign investment.
“A major barrier for investors in Pakistan is the fear that judicial institutions are corrupt,” the PTI leader remarked.
Jhagra added that the IMF had highlighted how a lack of trust in the judicial system prevented the judiciary from adequately supporting the economy, beyond its traditional political and legal functions.
Turning to the National Accountability Bureau (NAB), he said the report criticised its structure, noting that Pakistan’s anti-corruption framework relied heavily on a single institution vulnerable to political pressure.
“When the IMF says there is corruption in Pakistan and that the institutions tasked with combating it lack coordination and are politically influenced — will you accept that or not?” he asked.
Jhagra also referenced the IMF’s finding that the state employed 72 percent of people in formal jobs, arguing that such dominance inevitably gave rise to undue favours and distortions in sectors that should not be state-run.
Citing the sugar industry as a prominent example, he said the IMF had used it to illustrate how political and economic elites, together with regulators, had captured public benefits at significant cost to citizens.
According to the report, sugar mills benefited for decades from favourable policies, subsidies and loopholes because of their close ties with political leaders.
Jhagra further highlighted the report’s criticism of the Special Investment Facilitation Council (SIFC), noting that it operated under “untested transparency and accountability provisions”. He argued that the PML-N introduced the SIFC merely to satisfy key stakeholders of what he termed the current “hybrid setup,” adding, “They knew it wouldn’t attract any real investment — and they haven’t even tried.”
He concluded by saying the government now faced two choices: either act on the IMF’s recommendations or answer the serious questions raised by the report. But he added wryly that neither outcome was likely, as “the government won’t last — and neither will the SIFC.”
