Pakistan's cash economy hits record PKR 12T as tax evasion and inflation fears mount
Kamran Khan on Pakistan's PKR12 trillion cash surge, rising tax evasion, and what it means for inflation and the rupee.
News Desk
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Pakistan’s cash economy is reaching record levels, raising serious concerns about taxation, inflation, and financial stability.
According to State Bank data, currency in circulation is nearing Rs12 trillion, signaling that a large portion of economic activity remains undocumented. Despite efforts to digitize the economy, cash transactions continue to dominate, making it easier for businesses to stay outside the tax net.
This has led to a major revenue shortfall, with the FBR missing its targets once again. Even interest rate hikes have failed to bring liquidity back into the banking system.
Experts warn that excess cash outside banks could fuel inflation and shift into assets like gold and dollars, increasing pressure on the Pakistani rupee.
Is Pakistan becoming a cash-driven economy again? And can this trend be reversed?
Watch the full breakdown for insights.
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