What is Pakistan’s reform paradox?

In the realm of governance, Pakistan stands at a crossroads where its self-reported progress and international evaluations often paint contrasting pictures.

The past year has seen an unprecedented surge in reform activity, with the government claiming over 120 reforms across the governance, economic, legal and social sectors. Yet, international indices continue to rank Pakistan among the lower tiers globally, raising essential questions about the depth and impact of these reforms.

On the international stage, Pakistan’s standing remains a cause for concern. Transparency International’s Corruption Perceptions Index (CPI) 2024 ranked Pakistan 135th out of 180 countries, a two-place drop from the previous year, with its score declining from 29 to 27 out of 100. This score reflects persistent challenges in public sector integrity and transparency. Over the past decade, Pakistan’s CPI score has fluctuated between 27 and 33, indicating a lack of sustained improvement.

The World Bank’s Government Effectiveness percentile rank for Pakistan was reported at 30.66 per cent in 2023, suggesting ongoing issues with the quality of public services, civil service independence and policy implementation. Meanwhile, the World Justice Project’s Rule of Law Index ranked Pakistan 129th out of 142 countries in 2024, highlighting the country's continued struggles in justice, regulatory enforcement and fundamental rights.

These rankings may be numbers, but they reflect genuine concerns about how citizens, businesses, and investors experience governance. International organisations, such as the IMF, have also highlighted governance flaws, including the politicisation of the civil service, weak anti-corruption mechanisms and fragmented decision-making – all of which undermine accountability and effective policy implementation. Such assessments focus on outcomes: the actual reduction in corruption, the delivery of justice, and the independence of institutions.

In contrast, the Pakistan Reforms Report 2025, launched by Mishal Pakistan in partnership with the World Economic Forum, presents a different narrative. This first-of-its-kind report documents over 120 reforms undertaken by the government in just 11 months. It covers a comprehensive period from January 2024 to January 2025 and claims to offer a more accurate and holistic picture of the country’s transformation than international indices, which are often criticised for relying on partial or outdated data.

The report details wide-ranging reforms: the elimination of 150,000 federal workforce positions to reduce expenditures, a mandate for 33 per cent female representation on government boards, a reduction in inflation from 38 per cent to 4.1 per cent, and a rise in foreign exchange reserves from $4.4 billion to $11.73 billion by the end of 2024. GDP growth improved from 0.29 per cent to 2.38 per cent in the past year, with projections to reach 3.5 per cent in the next fiscal year.

The trade deficit shrank, new digital systems were introduced for transparency and significant legal and regulatory changes were made. The report also highlights efforts to restore investor confidence, crack down on illicit trade, and bring greater transparency to religious education institutions.

Importantly, the Reforms Report is not an evaluation of the effectiveness or quality of these reforms, but rather a documentation of structural and legal changes. It aims to bridge the knowledge gap between fragmented international data and the full spectrum of reforms being implemented. By engaging directly with ministries, media, academics and stakeholders, the report seeks to provide a transparent and comprehensive account of policy transformations.

Despite this surge in documented reform activity, the gap between Pakistan’s self-assessment and international evaluations remains wide. While the government’s report underscores unprecedented policy activity and improved documentation, international rankings continue to reflect persistent structural and institutional weaknesses. For instance, while the Reforms Report highlights progress in economic stability and social inclusion, international indices remain focused on the outcomes, such as the actual reduction in corruption, public trust in institutions and the independence of the judiciary.

Critics of international frameworks argue that global indices often employ a ‘one size fits all’ approach, which may not capture the local context, political culture or the hybrid civil-military governance structures unique to Pakistan. Nevertheless, these indices are still considered essential benchmarks for measuring state performance, public confidence and investor perception.

The discrepancy between domestic reform claims and global assessments arises from differences in methodology, focus and the time required for reforms to translate into measurable improvements. While the Pakistan Reforms Report 2025 marks a new level of transparency and systematic self-assessment, it serves primarily as a record of reforms introduced, rather than an independent evaluation of their effectiveness or impact. International assessments, by contrast, focus on outcomes and public perceptions, which remain areas of concern.

In summary, Pakistan’s internal documentation indicates a surge in reform activity and some measurable gains; however, international governance rankings continue to reflect deep-rooted challenges. The alignment between the two is improving with more comprehensive domestic reporting; however, a significant gap remains between the implementation of reform and the recognised improvements in global perceptions and rankings.

For Pakistan’s reform progress to be fully acknowledged internationally, sustained implementation, more profound institutional change and independent verification will be necessary. Only then can the country hope to move from reform rhetoric to a reality that is both measurable and meaningful on the world stage.

Still, the gap between domestic claims and global perceptions remains significant. While the government’s reporting emphasises a surge in reform activity and improved documentation, international watchdogs continue to highlight deep-rooted challenges such as weak institutional capacity, politicisation of the civil service, and limited accountability. The divergence is partly due to differences in methodology, where domestic reports focus on reforms introduced, international indices prioritise outcomes and real-world impacts.

To truly bridge this gap, Pakistan will need to ensure that reforms are not only announced but also effectively implemented, monitored, and independently verified. Sustained progress in governance requires building stronger institutions, promoting transparency and fostering a culture of accountability that extends beyond policy documents to everyday life.

Pakistan’s Vision 2025 recognises these needs, emphasising human and social capital development, inclusive growth and the modernisation of public sector institutions as core pillars of national progress. The challenge now is to translate ambitious plans and reform announcements into tangible improvements recognised domestically and internationally.

Pakistan’s recent governance reforms represent a significant step forward in enhancing transparency and policy innovation. However, closing the credibility gap with international perceptions will require not just more reforms but more profound, long-term institutional change and a relentless focus on delivering results that improve the lives of ordinary citizens. Only then will the world fully recognise Pakistan’s domestic achievements.

The writer is the head of the Governance and Reform Unit at the Sustainable Development Policy Institute (SDPI), Islamabad