Pakistan has been classified as a high-risk country for infrastructure corruption, according to the latest Infrastructure Corruption Risk Assessment (ICRAT) 2026.
Transparency International Pakistan (TIP) has released its first-ever Infrastructure Corruption Risk Assessment (ICRAT) report, highlighting significant governance weaknesses in the country’s infrastructure planning and delivery despite the presence of comprehensive regulatory frameworks.
The report, titled “Infrastructure Corruption Risk Assessment (ICRAT): Assessment of Governance Gaps in Infrastructure Planning and Implementation in Pakistan,” marks the first application in Pakistan of the assessment tool developed by Transparency International Australia.
According to the report, Pakistan scored 6.34 out of 10 on the overall context risk scale, placing the country in the “High ICRAT Risk” category.
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The assessment found that while infrastructure governance rules and regulations are largely in place, their implementation remains inconsistent and weak.
The report noted that project identification, approval, authorization, and procurement processes remain vulnerable to governance shortcomings.
It further highlighted Pakistan’s macro-fiscal challenges as a major obstacle to effective infrastructure delivery.
Researchers observed that under fiscal constraints and short political cycles, infrastructure projects are often selected based on visibility rather than technical and economic merit.
The report pointed out that discretionary development spending typically rises during election periods, while weak adherence to prioritization frameworks has resulted in an overstretched project pipeline.
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According to the findings, the Public Sector Development Programme (PSDP) “throw-forward” – representing unfunded commitments from approved projects – has exceeded Rs10 trillion, compared to an annual allocation of around Rs1 trillion.
“At the current funding pace, many projects could take more than a decade to complete,” the report reads.
The report also identified concerns within public procurement practices. Although the Public Procurement Regulatory Authority (PPRA) Rules 2004 promote open competition, subsequent amendments have introduced broad exemptions.
The assessment found that the National Highway Authority (NHA) increasingly uses PPRA Rule 42(f) to award large contracts directly to state-owned enterprises, limiting competition and reducing opportunities for private-sector participation.
TIP Executive Director Kashif Ali acknowledged recent reforms aimed at improving public investment management, including stronger appraisal requirements, climate vulnerability assessments, revised approval thresholds, and the introduction of the Intelligent Project Automation System (iPAS).
However, he emphasized that the primary challenge lies not in regulatory design but in the persistent gap between policy commitments and practical implementation.
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The report proposed a series of reforms to strengthen transparency and accountability. These include developing a costed five-year national infrastructure investment strategy, improving accountability for project delays, ensuring timely publication of project completion reports, and extending competitive procurement requirements to all significant development projects.
Other recommendations include reforming PPRA Rule 42(f), bringing state-owned enterprises fully under PPRA regulations, ensuring merit-based appointments within the NHA, increasing disclosure of project documents, strengthening parliamentary oversight, enforcing Right to Information laws, and expanding public participation throughout project planning and implementation.
Chairman TIP Justice (R) Zia Perwez said sustainable improvements in infrastructure governance require coordinated action across the entire project lifecycle.
He expressed hope that the assessment would support targeted reforms aimed at improving transparency, accountability, and efficiency in public investment across Pakistan.
