Pakistan

Background and Rationale

In Pakistan, bribery and corrupt practices are common and there is a lack of supporting infrastructure and tools for businesses to coordinate Collective Action. There are high risks of corruption and an inefficient monitoring mechanism, which poses a risk to companies operating in the country. Although reporting from Pakistan has been limited, incident data 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. Rejecting such demands leads to delays in vessel operations and, in some cases, threats of fines for alleged non-compliance. Shipowners have 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.  

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. Together with UNGC Pakistan, we have reached out to major shipping companies and government agencies, arranged webinars, and meetings in order to build a platform for industry dialogue and cooperation. 

Outcomes and Impact

In 2021, MACN and UN Global Compact Pakistan initiated bilateral meetings with key national stakeholders such as customs and various national business associations. By initiating dialogue with key national stakeholders, we have taken a first step towards increased in-country engagement. MACN strengthened its local presence and formed a working group against corruption and fraud involving shortage claims on wet cargo.