CSS/PMS ESSAY: PAKISTAN'S INFORMAL ECONOMY: THE WAY FORWARD

 OUTLINE:

1. Introduction 
2. What is meant by Economy, its scope & extent
3. Historical Background of Pakistan's Economy
4. Current status of Pakistan's economy
5. To what extent , it's true that Pakistan's economy is crippling owing to informal economy? yes, it is true, because:

• major part of economy go unrepresented
• black market is getting its place without positive future perspective
• putting dent on the Pakistan's representation
• seeping the revenue generations instead strain on the exchequer 
• helping the people to involve in non-state activities
• increasing the double digit inflation
• aiding in vicious circle of circular debt
• stressing to put extra tariff on trading with neighbouring countries
• not representing the role being played by agricutlural and cottage industry
• threatening and aiding non-state actors to involve in terror financing

6. What are the major rationales which are hindering in way of documentation of economy of Pakistan?

• resistence by the local traders
• loopholes in the current financial system(continous practice of Hundi & Hawala)
• undocumented indutries at large 
• no state owned database except NADRA
• no culture of accountability
• Central & federal board of revenue is not strong
• monetary bodies i.e. SECP & State bank is at fault

7. What would be the impacts of informal economy on Pakistan at large?

• everyone above the law
• financial transactions to sponsor terrrorism
• no tax / revenue generation
• state is getting weaker
• Rampant corruption
• no tracebility of transactions

8. Steps already taken to improvish the situation

• FATF Task Force
• Regular sharing of data by the Bank with Revenue Board 
• Anti- Money Laundering Act has been passed 
• Cyber Crime act has been formulated for E-commerce 

9. What measures are required in this regard?

• Strengthen monitoring bodies
• Employ more financial Task Force Team
• Autonomy for NAB
• Implementation of exisiting laws
• Strict boarder control to to contain black marketing
• Utlilize & Syndicate the role of NADRA with other departments
• Impose high tariff on the imports of luxuray items
• Make Landrecords & Local government bodies into functions

10. Conclusion 

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