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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World Pakistan launches campaign to fight corruption Reuters - Friday, November 12 Send IM Story Print * Corruption affecting investment, competitiveness * Immediate action to be taken against corrupt officials * International donors linking foreign aid to transparency By Sahar Ahmed and Kamran Haider KARACHI/ISLAMABAD, Nov 11 - Pakistan launched a new anti-corruption campaign on Thursday in an attempt to tackle the massive graft that threatens government stability and the economy of this nuclear-armed U.S. ally in the war on al Qaeda. Interior Minister Rehman Malik, who himself has outstanding corruption charges against him that he says are politically motivated, said immediate actions would be taken against corrupt officials in Islamabad's municipal council, the Water and Power Development Authority, the Federal Bureau of Revenue, the two national gas companies and passport departments. "Whatever others say about our country, we should look at our own house first," he told a news conference. "And yes, we have massive corruption in our country." He said an anti-corruption unit would respond to complaints received via telephone, email and short message service , and awards would be given to informers. Rehman added agents would be deployed in departments to report corrupt practices and sting operations would be conducted. Pakistan's corruption has increased since the 2008 ouster of military president Pervez Musharraf, according to analysts and international organisations. "During the early years of the previous regime, the perception of corruption was much less," said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For more Pakistan stories click [ID:nAFPAK] or see http://link.reuters.com/kac58m Pakistan blog: http://blogs.reuters.com/pakistan/ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> It is negatively impacting Pakistan's regional competitiveness, attractiveness to foreign investment and access to foreign aid, on which Pakistan depends for a significant percentage of its budget, especially after the summer floods which cost $9.7 billion in damages. International donors are also linking aid to greater transparency as many conditions of the $7.5 billion in U.S. aid under the Kerry-Lugar-Berman Law were put in place because of concerns over Pakistan's ability to account for the funds. It simultaneously undermines the public's faith in the unpopular civilian government, and starves the government of revenue because of massive tax evasion and also hampers its ability to tackle Islamist militants. A textile mill owner said that for years, he has filed for sales tax refunds from the government, but has rarely received any. Officials tell him they have no money to pay him. Asrar Raouf, a spokesman for the Federal Board of Revenue , said his department had no financial problems but it could not pay out claims without proper documentation. Bribes are everyday annoyances for Pakistanis, usually encountered from police, tax collectors and public utilities. Transparency International's local chapter estimates petty corruption costs Pakistan's economy between 200-225 billion Pakistani rupees a year. That's 1.58 percent of the country's 2009 GDP of $166.5 billion. Pakistan's Transparency International corruption ranking fell to 143 in 2010 from 139 in 2009 out of 178 countries surveyed. "Coupled with that of the risk aspect, the security, law and order situation, it will obviously deter foreign investors," said Hafiz Pasha, former adviser to the prime minister on finance and now Dean of Social Sciences, at Beaconhouse National University. (Additional reporting by Augustine Anthony; Editing by Chris Allbritton) (For more Reuters coverage of Pakistan, see: http://www.reuters.com/places/pakistan) Recommend Send IM Story Print Related Articles NZ's Kiwi Income Property H1 profit up 10 pct Reuters - 35 minutes ago NZ's Telecom and Vodafone propose rural broadband j/v Reuters - 1 hour 10 minutes ago US-BUSINESS Summary Reuters - 1 hour 13 minutes ago Wall Street falls as Cisco forecast hits sentiment Reuters - 1 hour 13 minutes ago US STOCKS-Wall St falls as Cisco forecast hits sentiment Reuters - 1 hour 16 minutes ago News Search Top Stories Acrimony as EU budget negotiations collapse Environmentalists urge action at tuna talks TB levels off with progress in China, India: WHO Irish bond rates hit record highs, fanning debt crisis fears Iraq rivals seal power-sharing deal More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended EU fines 11 airlines 800 million euros for air cargo cartel Boeing halts test flights of delay-plagued 787 Dreamliner Microsoft sues Motorola over 'excessive' royalties Obama panel urges deep spending cuts, tax reforms US trade deficit eases but China tensions remain More Most Viewed » Alcohol more harmful than heroin, crack cocaine: study Toddler survives seven-floor fall in France Spectacular unknown species found in Amazon EU fines 11 airlines 800 million euros for air cargo cartel Be fit, have fewer colds: study More Most Recommended » Elsewhere on Yahoo! 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