Transhumanist
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He is talking about the regular economy + the unaccounted for economy being over a trillion. Although I don't know whether that is true or not. What I do know is that if many Pakistani citizens began paying the correct income taxes including businesses then GDP will sky rocket as government revenue and spending would multiply.
And that's valid in every economy. If (a big if) people pay their taxes - or the correct amount for their income bracket (assuming Pakistan has one and not a flat rate or percentage), if they don't off-shore their earnings and investments, I don't disagree that a lot of Pakistan's economy is unaccounted for considering all economies face the same problems - the US is updating its GDP measuring to account for new metrics like weather-adjustment in the face of persistent down-ward first quarter pressure from adverse weather, my problem is with claims and their lack of supporting data. That's it.
Most, if not all economies face the same scenario, unfortunately, the reality is the same for everyone and a tax not paid is a tax not earned by the state, and thus a tax that's not counted in economic figures.
It's hypothetical claims, a tax not paid is a tax not paid, you can't count it in GDP if you don't earn it, otherwise the US and China would be even stronger. But they aren't, since they don't count unaccounted for taxes in their economic assessments, we shouldn't either when ascribing a value to an economy - unless we are doing so hypothetically.
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