Corruption and Institutional Decay: A Systemic Barrier to Sustainable Governance in Pakistan

Abstract

This paper investigates the systemic relationship between corruption and institutional decay as a barrier to sustainable governance in Pakistan. Using a quantitative research design, the study analyses secondary data from Transparency International, the World Bank, and Pakistan’s National Anti-Corruption Strategy. A composite governance decay index (GDI) is constructed using principal component analysis (PCA) to measure institutional performance across five dimensions: accountability, transparency, rule of law, regulatory quality, and control of corruption. The study finds a strong negative correlation (r = –0.81, p < 0.01) between corruption levels and institutional effectiveness. Regression analysis reveals that a 1-unit increase in the Corruption Perceptions Index (CPI) is associated with a 0.73-unit decrease in the GDI. The findings underscore that corruption is not merely a governance failure but a systemic driver of institutional decay, undermining Pakistan’s path to sustainable governance.