Transparency International, a global corruption watchdog, will run the telephone line to help monitor more than $7.5 billion (£4.81billion) promised over the next five years as part of a package to help stabilisePakistan as it battles with militants along its border with Afghanistan.
The move risks angering the government of Pakistan which has criticised Transparency International for increasing the nation’s corruption rating.
Activists have already warned that they face intimidation and harassment when carrying out their work.
On Tuesday, Syed Adil Gilani, the chairman of Transparency International Pakistan, said he had received three death threats from government officials since signing up to run the hotline.
“One to one, I was told not to keep on working as we are,” he said. “I was told that Karachi is not safe and there are many target killings.”
The fraud hotline is one of a number of anti-corruption projects that USAID, the US government’s donor agency, is working on with the Pakistan government.
“This is a normal oversight mechanism in many countries where we work,” said Bob Wilson, USAID mission director when he announced the hotline.
Last month, Transparency International’s annual corruption perception index ranked Pakistan as the 34th most corrupt country in the world — a rise of eight places, putting it on a par with Mauritania and one place below Zimbabwe.