LAHORE: Rule of law in Pakistan is repeatedly compromised by political, bureaucratic and business elites, distorting governance and the economy. Discretionary appointments, unchecked transfers and regulatory evasion foster corruption, weaken institutions and discourage meritocracy, ultimately hindering economic growth and eroding public trust in governance.
For instance, allowing the head of state or province to waive qualification criteria for high-level positions — such as education, age and experience — creates room for arbitrary decision-making that undermines meritocracy. When exceptions are granted at the discretion of a single authority, it opens the door to favouritism, nepotism and political manoeuvring. It also demoralises qualified candidates who meet the set criteria but lose opportunities to politically favoured individuals.
Furthermore, such discretion weakens institutions by allowing underqualified individuals to occupy critical positions, reducing efficiency and accountability. Over time, this practice erodes public trust in governance, as appointments appear arbitrary rather than merit-based.
Similarly, the ability of the ruling elite to make bureaucratic postings and transfers at will — turning the bureaucracy into a tool for personal or political gain — is a serious issue in Pakistan. This discretionary control undermines institutional independence, meritocracy and long-term policy consistency.
In strong democracies like the US, the UK, Germany and Canada, senior bureaucrats rise through a structured system based on qualifications, exams and experience. In the US, for example, presidents appoint key officials such as secretaries and ambassadors, but career civil servants hold most administrative positions. Appointments and transfers follow established rules, often overseen by independent bodies.
While political interference in bureaucracy exists in many weak democracies, including India, Bangladesh and several Latin American and African nations, Pakistan’s situation is more severe due to excessive executive discretion, a lack of institutional safeguards and a culture of personal loyalty over institutional integrity. Without reforms, the bureaucracy will remain a tool for rulers rather than a pillar of good governance.
The absence of effective regulatory oversight allows businesses to operate without proper checks and balances, distorting the economy. Many businesses underreport income, evade taxes or operate in the informal sector to bypass regulations. This reduces government revenue, leading to higher fiscal deficits and increased reliance on foreign loans and indirect taxation, which disproportionately burdens the poor.
Businesses that fail to comply with tax laws, labour regulations and quality standards gain an unfair advantage over compliant firms, discouraging fair competition. This enables inefficient businesses to survive while driving out those that adhere to the rules, fostering monopolistic or cartelised markets.
Without regulatory oversight, businesses frequently cut corners on product quality, food safety, environmental standards and worker protections. This leads to the sale of substandard or even harmful products, eroding consumer confidence in domestic goods.
Widespread regulatory evasion through bribery and political connections further weakens institutions, creating a culture where rules are negotiable rather than enforceable. This fosters systemic corruption and discourages ethical business practices. Businesses that circumvent regulations often neglect long-term investments in innovation, research, and workforce development, focusing instead on short-term gains.
Many unregulated businesses pay below minimum wages, ignore labour protections and avoid social security contributions, resulting in job insecurity, unsafe working conditions and long-term poverty for workers. This, in turn, weakens overall economic stability and reduces domestic demand.
International investors seek economies with transparent rules and predictable policies. A lack of regulatory enforcement makes Pakistan less attractive for foreign direct investment (FDI). Exports suffer as foreign buyers reject non-compliant goods due to quality and certification issues.
Without proper oversight, illicit activities such as money laundering, smuggling and under-invoicing thrive, distorting real economic indicators. The growth of the undocumented economy weakens the effectiveness of monetary policies, worsens inflation and limits the government’s ability to manage economic shocks.
Pakistan’s economic sustainability depends on enforcing regulations fairly, ensuring transparency and fostering a culture where compliance is rewarded rather than penalised. Strengthening rule of law is essential for restoring public trust, attracting investment and securing long-term economic stability.
