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. Since then, MACN has built Collective Action, facilitated industry dialogue, and collaborated with government agencies to address integrity challenges. To date, MACN has held several public-private roundtables and has established a national coordination committee for collective action in Pakistan. MACN also collaborates with the Pakistan Single Window to establish a grievance mechanism for the shipping sector.
Outcomes and Impact
MACN has deepened its engagement with all major business associations in the maritime value chain and set down a national collective action coordination committee. MACN has also begun work with the Pakistan Single Window and DG Shipping to create a grievance mechanism through the national shipping and logistics portal.
