Business
Pakistan Undocumented Economy Major Challenge; Minister
Pakistan Finance Minister, Muhammad Aurangzeb, has identified the undocumented economy as the major challenge facing the country.
Speaking at the World Economic Forum in Riyadh, Aurangzeb revealed that approximately 10 trillion in taxes is circulating in the market, and the government is considering transitioning to digital currency.
Half of Economy Undocumented
Aurangzeb noted that Pakistan has 9.4 trillion in annual revenues, but half of the economy remains undocumented.
This lack of documentation hinders the government’s ability to effectively manage the economy and collect taxes.
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Cash Assistance for Women
The government is providing cash assistance to entitled women as income support, with many beneficiary women opting to receive the cash through digital vaults.
IMF Chief Highlights Economic Hardships
IMF Managing Director Kristalina Georgieva also spoke at the forum, highlighting that some countries, including Pakistan, are facing economic hardships.
While some countries are doing well, others are “falling behind.” Georgieva noted that the Covid-19 pandemic had a significant impact on low-income countries, with the global economy suffering a loss of 3.3 trillion dollars.
Pakistan’s Economic Challenges
Pakistan’s economy has faced significant challenges in recent years, including a large trade deficit and high inflation.
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The government has implemented various measures to address these issues, including increasing taxes and implementing austerity measures.
Digital Currency: A Solution?
The consideration of digital currency by the government is a significant development, as it could help to address the issue of undocumented economy and improve tax collection.
However, it remains to be seen how this will be implemented and what the implications will be for the economy.
