Preparing the Ground for Collective Action

Background and Rationale

Pakistan is widely considered a high-risk jurisdiction for a number of corrupt practices such as bribery, facilitation payments, and various types of extortion. This poses a risk to companies operating in the country. Available evidence suggests that shipping companies calling Pakistani ports face frequent illicit demands for small in-kind payments such as cigarettes, alcohol, and soda drinks being the most common. The shipping industry has also highlighted systemic challenges with sophisticated corruption schemes around phantom shortage claims. This issue particularly affects liquid cargo but is increasingly affecting dry cargo and bulk as well. Rejecting such demands can lead to delays in vessel operations and, in some cases, threats of fines for alleged non-compliance.

MACN’s Strategy

In 2021, MACN scaled up its Collective Action in South Asia and launched a new initiative in Pakistan with funding from the Siemens Integrity Initiative. The aim of this action is to prepare the ground for Collective Action, facilitate industry dialogue, collaborate with government agencies, raise awareness, and deploy MACN’s compliance tools. To date, MACN has held several public-private roundtables and has begun work to set down a coordination committee for collective action in Pakistan. Action is also being undertaken to establish standard operating procedures for processes that have been identified as high-risk of corrupt demands, such as immigration and customs clearance.

Outcomes and Impact

In 2021, MACN and UN Global Compact Pakistan initiated bilateral meetings with key national public and private sector stakeholders. MACN has deepened its engagement with all major business associations in the maritime value chain, strengthening its local presence. MACN has also begun to set down a coordination committee for steering national collective action efforts and formed a working group against corruption and fraud involving shortage claims on wet cargo.  

Latest MACN News from Pakistan

MACN’s Local Partner

global-network-pakistan

The Global Compact Network Pakistan (GCNP) is the local chapter of the United Nations Global Compact – the largest corporate sustainability initiative in the world. The GCNP seeks to promote responsible business practices through the implementation of the 10 Principles of the UN Global Compact and the UN Sustainable Development Goals (SDGs). The Local Network supports and guides Pakistani companies in integrating the SDGs into business strategies and operations by offering innovative programmes, multi-stakeholder engagements, training, guidance, tools, and more. 

The Maritime Anti-Corruption Network (MACN) has partnered with the UN Global Compact in Pakistan to launch a Collective Action initiative on tackling integrity challenges in the port and shipping sector of Pakistan.

MACN-Pakistan

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MACN Pakistan Timeline

  • 2023

    • February-March 2023 – GCNP and MACN officially launch the project “Collective Action Against Corruption in the Maritime Sector in Pakistan”. More than 120 industry stakeholders participate in the launch seminar
  • 2022

    • January 2022 – GCNP and MACN start meeting with key private and public sector stakeholders in order to spread awareness and build trust among stakeholders
    • October 2022 – MACN, the International Group of P&I, and the International Parcel Tankers Association forms a working group against phantom short landing schemes in Pakistan
    • December 2022 – GCNP hosts the first roundtable, with the presence of key private sector industry associations and government agencies
  • 2021

    • June 2021 – MACN starts collaborating with Global Compact Network Pakistan (GCNP) to expand MACN’s presence in the country

Further information on our work in Pakistan can be found on our Pakistan member page. This requires a member log in.

Click here if you are interested in becoming a member of MACN.

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