Transparency International Pakistan Unveils 54 Governance Reforms to Boost Economic Growth

Karachi, June 3, 2025: Transparency International Pakistan has released a comprehensive report, The Civil Society Governance Diagnostic Assessment for Pakistan, outlining 54 critical governance reform recommendations to bolster economic growth. The report focuses on fiscal governance, financial regulation, and rule of law, emphasizing their role in addressing Pakistan’s economic challenges amid a 37-month, US$7 billion IMF Extended Fund Facility (EFF).

The report identifies governance weaknesses, including lax regulations, corruption, and ineffective policy implementation, as root causes of Pakistan’s economic struggles. It calls for democratizing fiscal governance by enhancing Parliament’s role in budget processes and eliminating unjustified tax exemptions in sectors like agriculture, real estate, and imports to ensure a fair tax burden.

To strengthen accountability, the report advocates for empowered Public Accounts Committees, digitized revenue systems, expenditure tracking, procurement processes, and performance auditing to minimize discretion. It also urges breaking the undocumented economy cycle through fully digitized business registration and incentives for electronic financial transactions to boost investor confidence and economic resilience.

On anti-corruption, the report recommends shifting from punitive measures to preventive systems, emphasizing institutional integrity, civic awareness, and independent scrutiny. It stresses credible accountability mechanisms, non-partisan oversight, whistleblower protections, and effective implementation of Right to Information laws through digital tools and proactive disclosure.

The report highlights the need for constitutional reforms to strengthen local governance, proposing a dedicated chapter in the Constitution to define the structure, powers, and jurisdiction of local governments, addressing the limitations of Articles 32 and 140-A.

Additionally, it notes Pakistan’s US$4 billion annual losses from climate change-induced events, requiring 1% of GDP (Rs. 1.24 trillion) annually for mitigation. With low climate finance inflows, the report calls for standardized climate spending reporting and annual climate budget reports to align with Pakistan’s NDC commitments.

Kashif Ali, Executive Director of Transparency International Pakistan, emphasized that the report integrates diverse perspectives and offers evidence-based recommendations aligned with Pakistan’s economic and social goals. Justice (R) Zia Perwez, Chairman, underscored the centrality of integrity and transparency in Pakistan’s development. Dr. Kaiser Bengali, lead author, highlighted that strong institutions are critical for effective policy implementation, with digitization and transparency as key reform pillars.