Pakistan's Finance Minister addresses undocumented economy at World Economic Forum

Pakistan's Finance Minister Muhammad Aurangzeb highlighted the significant challenge posed by the country's undocumented economy during a special meeting at the World Economic Forum in Riyadh. Aurangzeb revealed that approximately 10 trillion tax is circulating in the market, with half of the economy remaining undocumented. To address this issue, the government is contemplating a shift towards digital currency.

Aurangzeb emphasized the urgent need for a framework to establish a green tax economy, recognizing the necessity of fundamental changes in business models. He stressed the importance of combining domestic efforts with international financing to meet the country's financial requirements.

Furthermore, the Finance Minister mentioned the government's provision of cash assistance to eligible women as income support, with a focus on enabling beneficiaries to receive funds through digital means.

IMF Managing Director Kristalina Georgieva also spoke at the meeting, acknowledging the economic challenges faced by countries like Pakistan. She highlighted the disparities in economic performance among nations, attributing some countries' struggles to the impact of the Covid-19 pandemic. Georgieva noted a global economic loss of 3.3 trillion dollars during the pandemic, underscoring the need for innovative financing structures to support low-income countries.