The undocumented economy is one of the country’s most dire problems, undermining the taxation system and economic expansion. The money made in this informal sector often stays outside of state revenues and, in some cases, has even been laundered abroad. It is also a source of funding for extremist and criminal organizations. Financial digitization can help pave the way for greater inclusion in the formal economy but the government will still have to reform laws and taxation to reduce the size of the informal sector.
Rahim Ullah Wazir
Bannu