ISLAMABAD: Pakistan’s infrastructure sector is exposed to a high risk of corruption and governance weaknesses despite having a largely robust regulatory framework, according to a new assessment released by Transparency International (TI) Pakistan on Friday.
The report highlights that weak enforcement of rules, politically influenced project selection, fiscal constraints, and increasing reliance on non-competitive contracting practices are undermining transparency and efficiency in infrastructure planning and execution.
Titled “Infrastructure Corruption Risk Assessment (ICRAT): Assessment of Governance Gaps in Infrastructure Planning and Implementation in Pakistan,” the report assigns Pakistan an overall risk score of 6.34 out of 10, categorising it as “High ICRAT Risk.” The assessment is based on the Infrastructure Corruption Risk Assessment Tool developed by Transparency International Australia.
According to the findings, Pakistan has a comprehensive regulatory framework governing infrastructure planning, procurement, and implementation. However, the main challenge lies in the persistent gap between policy design and effective implementation on the ground.
The report notes that infrastructure project selection is often influenced by political considerations rather than technical priorities, particularly under fiscal constraints and short political cycles. It adds that development spending tends to increase during election periods, while weak prioritisation has contributed to an unsustainable pipeline of projects.
A major concern identified is the growing backlog of incomplete projects. The Public Sector Development Programme (PSDP) “throw-forward” liabilities—unfunded commitments on approved projects—have exceeded Rs10 trillion against an annual development budget of around Rs1 trillion, meaning many projects may take more than a decade to complete at current funding levels.
On procurement practices, the report observes that although the Public Procurement Regulatory Authority (PPRA) Rules 2004 require open competitive bidding, subsequent amendments have introduced broad exemptions. It particularly flags the increasing use of PPRA Rule 42(f) by the National Highway Authority (NHA) for awarding large contracts to state-owned entities without competitive bidding, limiting private-sector participation.
TI Pakistan Executive Director Kashif Ali stated that the core issue in infrastructure governance is not the absence of rules but the gap between regulatory commitments and their implementation.
The report recommends major reforms, including a five-year costed national infrastructure investment plan, mandatory accountability for project delays, timely publication of completion reports, and stronger oversight of development spending.
It further calls for bringing all state-owned enterprises under PPRA rules, revising Rule 42(f) to restrict direct contracting, ensuring merit-based appointments in the NHA, and improving transparency through public disclosure of feasibility studies, contract amendments, and cost escalations.
Additional recommendations include strengthening parliamentary oversight of PSDP and NHA expenditures, enforcing right-to-information laws, and ensuring greater public participation in infrastructure planning and implementation.
Justice (R) Zia Perwez, Chairman of TI Pakistan, said sustainable improvement in infrastructure governance requires coordinated reforms across all stages of project planning and execution.
Story by Ansar Abbasi
