Pakistani GDP is now $800 Billion (Formal +Informal) as per ILO, SMEDA joint study

[nahtanbob]

Same, as well. I have been arguing the same for years. Pakistan’s economy is grossly undervalued, perhaps for political reasons by the ruling elite and army junta. It’s at least triple or quadruple the size of the official numbers.

GDP is total sum of all products and services made internally. I always keep hearing about informal economy or undocumented economy. Can someone explain what exactly is undocumented ?

 

[CallSignMaverick]

India's GDP is also $12 trillion, rest is "informal" .

 

[Faani83]

GDP is total sum of all products and services made internally. I always keep hearing about informal economy or undocumented economy. Can someone explain what exactly is undocumented ?

The Impact of Pakistan's Informal Economy on its Overall Economic Development

Pakistan's informal economy has been a significant contributor to the country's overall economy accounting for 72% of non-agricultural

moderndiplomacy.eu

 

[nahtanbob]

The Impact of Pakistan's Informal Economy on its Overall Economic Development

Pakistan's informal economy has been a significant contributor to the country's overall economy accounting for 72% of non-agricultural

moderndiplomacy.eu

GDP is total sum of all products and services made internally. I always keep hearing about informal economy or undocumented economy. Can someone explain what exactly is undocumented ?

I will give you some examples - prostitution, drugs etc. which do not get documented

 

[JaneBhiDoYaaron]

P-A-J-E-E-T troll can't handle the truth

Mu-jeet make sure to invest in red hot pakistan economy.

 

[313Ghazi]

GDP is total sum of all products and services made internally. I always keep hearing about informal economy or undocumented economy. Can someone explain what exactly is undocumented ?

I will give you some examples - prostitution, drugs etc. which do not get documented

I'll give you 2 examples I know of.

1. People paying £25,000 to get work visas to the UK. Fake companies are setup in the UK. They sign up with the home office and apply to sponsor workers for fake roles they can't apparently get filled in the UK.

Agents then advertise these roles. The business in the UK makes about £15,000 and about £10,000 of each transaction is kept in Pakistan. That goes to bribes and agents fees.

Another example is property deals done in cash. Value of property under declared to the taxman. Funds handed over in cash. I know of £300,000 transaction where at least £50,000 was sent to the uk in cash.

Plenty of undeclared income floating around. People who make stuff and sell stuff - just don't declare it

 

[EugeneP]

I'll give you 2 examples I know of.

1. People paying £25,000 to get work visas to the UK. Fake companies are setup in the UK. They sign up with the home office and apply to sponsor workers for fake roles they can't apparently get filled in the UK.

Agents then advertise these roles. The business in the UK makes about £15,000 and about £10,000 of each transaction is kept in Pakistan. That goes to bribes and agents fees.

Another example is property deals done in cash. Value of property under declared to the taxman. Funds handed over in cash. I know of £300,000 transaction where at least £50,000 was sent to the uk in cash.

Plenty of undeclared income floating around. People who make stuff and sell stuff - just don't declare it

I don't think your examples are what are called 'informal sector' or 'underground economy' because there is no value added in any transaction. It is simply fraud that transfers money from one entity to another violating some laws. If I steal money from you (or rob you), the GDP does not go up due to 'informal sector'. Informal sector is that sum total of production of goods and services that are not captured by traditional accounting or measurement techniques - usually because it is cash based, untaxed or otherwise unregulated. It may involve illegal activities like making illegal alcohol (or even gambling or prostitution) but there must be some activity involving production of goods or services that the participants are willing to exchange money for.

 

[newb3e]

I am no econ major, but the concept I have been told and read is:

1- Increase your rates. Everyone increases rates.
2- The consumer pays more
3- You get more profit
4- You then use that profit to pay those higher salaries and be compliant with laws.
5- Government gets more money, so they reduce the power rates etc.

Of course this is a year long strategy, not a quick one.

But we need to make a start from somewhere.

Labor laws are already non existent in Pakistan.

Leave out the small Kariana store in some village, but at least do tax the retailers sitting in F7 and F10 markaz. Tax the small industries operating in every nook and cranny in Lahore. Tax the tire shops and body shops in Sultan ki Khui. Those guys are selling 70k car doors tax free!

tax everyone so elites can loot more buy more properties in UAE and London buy pizza chains in US while poor suffers! konsa nizam hai bhai ya!

 

[Cryptonian]

The Impact of Pakistan's Informal Economy on its Overall Economic Development

Pakistan's informal economy has been a significant contributor to the country's overall economy accounting for 72% of non-agricultural

moderndiplomacy.eu

If its informal, How are these agencies are telling numbers like 72% of agro being undocumented , 457B$ , etc with so much of confidence. To say something is Undocumented, One needs to know which sector is documented in govt's book, but Pakistan has stopped releasing any elaborated GDP calculation reports.

Biggest fallacies peddled about this rhetoric is that ,its untaxed hence informal or undocumented, But in reality being UNTAXED> does not mean being INFORMAL.

 

[harpy1]

Informal economy adds nothing to Pakistani state
No declared income no taxes for collection for your roads health education and military skills you go to the imf or saudi

There is tax evasion in every country
In India it's probably in the trillions of dollars but we do not count it for reasons above