PIDE SLUDGE AUDIT VOL – 3
PREFACE
PIDE SLUDGE is now widely quoted research that has revealed how we are overly bureaucratic and market unfriendly.¹ Investment-GDP ratio remains low because every economic activity undergoes an extremely sluggish, paper-based process that works its way slowly through officialdom, sometimes taking years to undertake activities. Businesses getting disheartened often move out of the country or reduce growth.
It is no wonder that Pakistan has stunted companies and shrinking stock market.²
Here we turn the lens of SLUDGE on the judicial system. A wise, speedy and reliable judiciary plays a pivotal role for fostering trust and confidence among investors and businesses while cultivating a conducive investment environment. Through the enforcement of contracts, protection of property rights, and resolution of market irregularities, it substantially reduces transaction costs enforcing rules of the market with clarity and transparency.
GDP can be seen as the sum of transactions. Speedy and numerous transactions are a sign of a growing economy. Judicial delays and inefficiencies impede speedy and reliable transactions hampering growth and development.
PIDE BASICS –a large survey across the country — has shown that public’s trust in the judicial system is very low.³ Research conducted by PIDE and RASTA has uncovered the significant challenges plaguing Pakistan’s judicial system, including a burgeoning backlog of cases and prolonged delays, with over 2 million cases pending and some cases taking up to 20 years to resolve.
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¹ https://rasta.pide.org.pk/wp-content/uploads/pide-sludge-audit-vol-1.pdf
² https://file.pide.org.pk/pdfpideresearch/wp-0203-a-small-club-distribution-power-and-networks-in-
financial-markets-of-
Pakistan.pdf?_gl=1*lcfymh*_ga*MjMzOTEwOTQwLjE3MTMzMzIxOTc.*_ga_T5TLWHEVW9*MTcxNDEx
OTY1Mi4zLjAuMTcxNDExOTY1Mi42MC4wLjg5MjUyNTA5NQ
³ https://file.pide.org.pk/pdfpideresearch/bqr-01-identity-inclusion-and-social-capital-in-upper-and-
southern-
punjab.pdf?_gl=1*17y855i*_ga*MjMzOTEwOTQwLjE3MTMzMzIxOTc.*_ga_T5TLWHEVW9*MTcxNDEx
OTY1Mi4zLjEuMTcxNDEyMTMyNC41MS4wLjg5MjUyNTA5NQ
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While judicial reform is always a topic of discussion and Asian Development Bank’s loans have been used to study and undertake this initiative, little has been achieved. PIDE has undertaken several areas of judicial work in this volume to study how transactions are affected by the judicial process. We have attempted here to estimate the SLUDGE in the judicial system of Pakistan, including the delays and the costs incurred through inefficiencies in the judicial system.
Despite our best efforts, we feel that we are reporting to you results that are likely to be far lower than what people actually experience. Actual costs that people face as suggested by anecdotal evidence, we expect, is much higher.
We do hope that this study will shed light on much needed judicial reform. The quality of the justice system is fundamental pillar of an efficient economy. We urge our policymakers and thinkers to look at our research, and take the necessary steps to speed up judicial reform. As we have pointed out in our reform manifesto, our demographic bulge, as well as, high level of indebtedness should force us to treat all reform including that of the judiciary to eke out all the efficiency that we can from our economy. 4
Our youth demands it and our survival depends on it!
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4 https://file.pide.org.pk/pdfpideresearch/rr-pide-reform-manifesto-transforming-economy-and-
society.pdf?_gl=1*18apc9d*_ga*MjMzOTEwOTQwLjE3MTMzMzIxOTc.*_ga_T5TLWHEVW9*MTcxND
Ex OTY1Mi4zLjEuMTcxNDEyMjMzNS42MC4wLjg5MjUyNTA5NQ.. And
https://file.pide.org.pk/pdfpideresearch/rr-immediate-reform-agenda-imf-and-
beyond.pdf?_gl=1*futk2z*_ga*MjMzOTEwOTQwLjE3MTMzMzIxOTc.*_ga_T5TLWHEVW9*MTcxNDE
xO TY1Mi4zLjEuMTcxNDEyMjM4Mi4xMy4wLjg5MjUyNTA5NQ
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