"The institutional structure of Pakistan’s economy is designed to generate rents for the elite at the expense of the middle classes and the poor. It is this structural characteristic of the economy and not just bribery that prevents sustained high economic growth and equity"-- Economics of corruption, Dr. Akmal Hussain.

The National Accountability Bureau (NAB) during anti-corruption week (7-12 December 2015) presented its achievements and future plans to counter the menace of corruption as well as organised speech, painting, poetry, and essay writing competitions among students for awareness. The main emphasis was on the point that "corruption is an insidious plague that has a wide range of corrosive effects on societies. It undermines development and rule of law and is a breeding ground for organised crimes in a society and thus we have to eradicate it."

In a seminar held in Karachi on December 10, 2015 by NAB in collaboration with Transparency International Pakistan on "Zero corruption, 100 per cent Development", the consensus was that "corruption affects a country just like cancer that causes delays in early completion of development projects and huge losses to national exchequer. It also increases inflation in the country, decreasing the buying power of common man."

In the wake of immense pressure from Supreme Court of Pakistan and criticism for media and public, NAB at last has unveiled a comprehensive ‘National Anti-Corruption Strategy (NACS)’ for eradication of corruption and corrupt practices throughout the country. It is claimed in NAB’s Annual Report of 2014 that since its inception, the bureau had recovered Rs265 billion from "corrupt persons", which is a "record achievement."

NAB also takes credit that due to its "extraordinary performance," Pakistan showed marked improvement in Corruption Perception Index (CPI) from 175 to 126. In coming days, with improved infrastructure and rationalised workload, timelines have been prescribed by NAB for efficient, effective and expeditious disposal of cases putting a maximum limit of 10 months from complaint verification-to-inquiry-to-investigation and finally to a reference in Accountability Court. NAB has also introduced a new concept of Combined Investigation Team (CIT) which is improving the quality of investigations as well as professional capacity of investigation officers (IOs). Recently, NAB has also established its first Forensic Science Lab (FSL), which has facilities of digital forensics, questioned documents and fingerprint analysis.

In 2012, battle of words occurred between the government and NAB about the quantum of corruption. The then Chairman NAB first put the figure at Rs12 billion and then revised it to Rs7 billion a day. The government, as usual, was in a denial mood. Majority of cabinet members in a meeting criticised the then Chairman NAB for what they called relying on "fictional" figures given by the Transparency International. A minority was of the view that even if the figures were "incredulous," the matter should be taken up seriously -- they pointed out that the corruption index was based on a perception report and implicated not only the federal government but also provincial governments. Zealous members cried: "there is no need to be apologetic and defensive; we should summon the Chairman NAB and head of Pakistan TI."

In the end, a four-member committee was constituted "to tackle the matter comprehensively." Nothing happened thereafter and now the saga of Dr Asim Hussain, former federal adviser, presently in custody of NAB! Unless there is across the board accountability of the rich and mighty, the situation will never improve and forces of loot and plunderers will remain at loggerhead with each other -- in this scenario the real sufferers are the people of Pakistan.

Countering corruption, rent-seeking, black money and tax evasion is a daunting task in Pakistan. Till today no serious effort has been made by successive governments, civil and military alike, to eradicate these maladies by structural reforms -- to remove causes behind these. For example, the beneficiaries of free and concessional plots -- mighty men in khaki and mufti -- are not considered doing anything wrong as it is "State policy to give them what belongs to masses." So it is not strange if much-publicised anti-corruption week or conferences or seminars by NAB ever touch such vital areas.

People of Pakistan want the NAB to nab those who make lots of money by transferring plots allotted to them at nominal rates at extravagant prices and yet do not pay a single penny as tax [though this constitutes ‘adventure in the nature of trade’ and is chargeable to tax under the Income Tax Law]. How some powerful men are engaged in this profit-making venture is a not a secret, yet not a single case has been registered so far against any tax evader and tax official although both are responsible for colossal revenue loss to the national exchequer.

Undoubtedly, Pakistan is a unique place where the State, instead of combating corruption, sponsors and legitimises all kinds of malpractices. Reverse capital flows and flight of capital are daily phenomena, courtesy appeasement of the corrupt and criminals. Every year, billions are sent abroad and then a part of this untaxed money, hidden in tax havens, is legitimised using facility provided by the State -- section 111(4) of the Income Tax Ordinance, 2001 saying no question can be asked for any money received through remittance! Out of total remittances of US$ 16 billion received in FY 2015, how much was on this account, nobody knows. Additionally, many billions pour into informal economy through hundi, hawala etc -- these inflows are Pakistan’s real financial lifeline and NAB do not nab the culprits for obvious reasons.

Pakistan is thus a classic case study of unchecked and unabated reverse capital outflows and flight of capital. The Pakistani economy has been losing billions since 1991 when many money whitening schemes and Protection of Economic Reforms Act 1992 were introduced by Nawaz Sharif to legitimise untaxed and ill-gotten assets -- it was done cleverly in the name of liberalisation of economy [see details in Pakistan: Enigma of Taxation, Pakistan: From Hash to Heroin and its sequel Pakistan: From Drug-trap to Debt-trap].

The Protection of Economic Reforms Act, 1992 gives free hand to tax cheats and money launderers -- this law has never been examined from this perspective. All public office holders who have taken advantage of this law should have been disqualified for open admission of cheating the State but not a single case has been probed by NAB till today. Our rulers have been "engineering" laws for self-aggrandisement and the poor and helpless of this Land of Pure, though burdened with exorbitant indirect taxes, get nothing in return.

Tax Directories for 2013 and 2014 published by Federal Board of Revenue show laughable quantum of incomes of majority of elected members, yet NAB has taken no action till today. They have assets inside and outside the country -- mostly held benami but no Chairman NAB has shown the courage to investigate the same.

The ultimate cynicism that afflicts a society is acceptance of corruption as a way of life. Unfortunately, after 68 years of independence, this is precisely where we have reached. There is a general perception that NAB has been only victimising political opponents at the behest of masters of the day.

Majority of the elected members in June 2012 favoured the immunity law protecting mafias controlling stock markets because they were/are their fund managers (do business through benami accounts). Since majority in Parliament were not filing tax returns and wealth statements prior to 2013 on the plea tax deducted from emoluments was suffice, they enthusiastically passed the Bill tabled on December 17, 2012 for whitening untaxed money at stock exchanges.

Corruption is not an isolated phenomenon as explained by Dr Akmal Hussain. The issue is dismantling of structures giving rise and protection to it. Pakistan cannot progress unless foundations of corruption are destroyed and assets of plunderers of the national wealth and tax evaders are confiscated.