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Pakistan’s decline continue in CPI 2010- Response to global crises must prioritise zero-tolerance for corruption

Berlin-Karachi , 26 October 2010 — With governments committing huge sums to tackle the
world’s most pressing problems, from the instability of financial markets to climate change
and poverty, corruption remains an obstacle to achieving much needed progress, according to
Transparency International’s 2010 Corruption Perceptions Index(CPI), a measure of domestic,
public sector corruption released today.
The 2010 CPI shows that nearly three quarters of the 178 countries in the index score below
five, on a scale from 0 (perceived to be highly corrupt) to 10 (perceived to have low levels of
corruption), indicating a serious corruption problem.
“These results signal that significantly greater efforts must go into strengthening governance
across the globe. With the livelihoods of so many at stake, governments’ commitments to
anti-corruption, transparency and accountability must speak through their actions. Good
governance is an essential part of the solution to the global policy challenges governments
face today,” said Huguette Labelle, Chair of Transparency International (TI).
Pakistan 2010 Corruption Perceptions Index Score is 2.3 against 2.4 in 2009, and out of
178 countries, its ranking as most corrupt country has slipped 7 ranks, from 42 in 2009 to
34 most corrupt country in 2010.
Syed Adil Gilani, Chairman TI Pakistan said in last two year there have been unprecedented
cases of corruption involving tens of billions of rupees in public sector organization, which
under the Rule of Law, should have been taken up by the National Accountability Bureau.
He said the Political will of the government to fight Corruption is lacking which has resulted
in the Supreme Court of Pakistan to take Suo Moto action against mega corruption in
NICL, Pakistan Steel, Rental Power Plants. The CPI 2010 reveals that corruption in
Pakistan is increasing, while in Bangladesh it is decreasing. Bangladesh was perceived to be
the most corrupt country in 2001, 2002 and 2003 and its ranking in 2010 is 39 most
corrupt country. Reduced corruption has paid dividends to Bangladesh whose annual GDP
growth last year was over 5%, while Pakistan’s GDP growth last year was near 2.4 %.
Delay in formation of An Independent Accountability Commission by the parliament may
further aggravate the situation. Chairman TI Pakistan said that the Supreme Court of
Pakistan, which has a declared policy of Zero-Tolerance for Corruption on 22 March
2009, in its order of 12th October, 2010 in NICL Case No.18 of 2010 involving six
NOTE: All materials are embargoed until 26 October 2010 at 10:00 Berlin
time, which is 14.00 Pakistan time.
procurements is considers the Violation of Public Procurement Rules 2004 as a criminal act.
It is a landmark order, treating violation of Public Procurement Rules 2004 as a federal crime
and it will help reduction in Corruption. The direct impact of increased Corruption is
witnessed in the rise in the prices of food commodities which according to the latest
official data of Federal Bureau of Statistics, have increased up to 120 percent in last one year
viz. sugar from Rs 54 to Rs 80, pulses from Rs 50 to Rs 110, eggs from Rs 35 to Rs 60, and
the Foreign Direct Investment for the fiscal year 2009-2010 dropped to US $ 2.21 billion
from US$ 3.71 billion in FY 2008-2009, and in July-Sept 2010 it is further dropped to US
$ 387.4 million ( 68% of last year). Foreign debt on Pakistan increased from US $ 40 Billion
in 1999 to US $ 46 billion in 2008, whereas in last two years it has increased to US $ 53.5
Across the board Application of Rule of Law, Merit based appointments and easy Access to
Justice is the only solution to save Pakistan from corruption, which is responsible for
poverty, inflation, terrorism, illiteracy, lack of electricity and hording of essential food
In the 2010 CPI, Denmark, New Zealand and Singapore tie for first place with scores of 9.3.
Unstable governments, often with a legacy of conflict, continue to dominate the bottom rungs
of the CPI. Afghanistan and Myanmar share second to last place with a score of 1.4, with
Somalia coming in last with a score of 1.1.
Where source surveys for individual countries remain the same, African Development Bank,
Asian Development Bank, Bertelsmann Foundation, Economist Intelligence Unit, Freedom
House, Global Insight and the World Bank. and where there is corroboration by more than
half of those sources, real changes in perceptions can be ascertained. Using these criteria, it is
possible to establish an improvement in scores from 2009 to 2010 for Bhutan, Chile, Ecuador,
FYR Macedonia, Gambia, Haiti, Jamaica, Kuwait, and Qatar.
“The results of this year’s CPI show again that corruption is a global problem that must be
addressed in global policy reforms. It is commendable that the Group of 20 in pursuing
financial reform has made strong commitments to transparency and integrity ahead of their
November summit in Seoul,” said Labelle. “But the process of reform itself must be
accelerated.” TI calls on the G20 to mandate greater government oversight and public
transparency in all measures they take to reduce systemic risks and opportunities for
corruption and fraud in the public as well as in the private sector.
The message is clear: across the globe, transparency and accountability are critical to
restoring trust and turning back the tide of corruption. Without them, global policy solutions
to many global crises are at risk.

transparency2 Pakistan’s decline continue in CPI 2010  Response to global crises must prioritise zero tolerance for corruption

Transparency International

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