"\u003chtml xmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1252\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 11\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 11\"\u003e\r\n\u003clink rel=File-List href=\"2013J18_files/filelist.xml\"\u003e\r\n\u003ctitle\u003eUNDOCUMENTED ECONOMY\u003c/title\u003e\r\n\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:DocumentProperties\u003e\r\n  \u003co:Author\u003eOratier\u003c/o:Author\u003e\r\n  \u003co:Template\u003eNormal\u003c/o:Template\u003e\r\n  \u003co:LastAuthor\u003eOratier\u003c/o:LastAuthor\u003e\r\n  \u003co:Revision\u003e2\u003c/o:Revision\u003e\r\n  \u003co:TotalTime\u003e0\u003c/o:TotalTime\u003e\r\n  \u003co:Created\u003e2015-01-24T09:35:00Z\u003c/o:Created\u003e\r\n  \u003co:LastSaved\u003e2015-01-24T09:35:00Z\u003c/o:LastSaved\u003e\r\n  \u003co:Pages\u003e1\u003c/o:Pages\u003e\r\n  \u003co:Words\u003e1628\u003c/o:Words\u003e\r\n  \u003co:Characters\u003e9282\u003c/o:Characters\u003e\r\n  \u003co:Company\u003eOratier\u003c/o:Company\u003e\r\n  \u003co:Lines\u003e77\u003c/o:Lines\u003e\r\n  \u003co:Paragraphs\u003e21\u003c/o:Paragraphs\u003e\r\n  \u003co:CharactersWithSpaces\u003e10889\u003c/o:CharactersWithSpaces\u003e\r\n  \u003co:Version\u003e11.5606\u003c/o:Version\u003e\r\n \u003c/o:DocumentProperties\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003cw:WordDocument\u003e\r\n  \u003cw:DoNotHyphenateCaps/\u003e\r\n  \u003cw:PunctuationKerning/\u003e\r\n  \u003cw:DrawingGridHorizontalSpacing\u003e6 pt\u003c/w:DrawingGridHorizontalSpacing\u003e\r\n  \u003cw:DrawingGridVerticalSpacing\u003e6 pt\u003c/w:DrawingGridVerticalSpacing\u003e\r\n  \u003cw:DisplayHorizontalDrawingGridEvery\u003e0\u003c/w:DisplayHorizontalDrawingGridEvery\u003e\r\n  \u003cw:DisplayVerticalDrawingGridEvery\u003e3\u003c/w:DisplayVerticalDrawingGridEvery\u003e\r\n  \u003cw:UseMarginsForDrawingGridOrigin/\u003e\r\n  \u003cw:ValidateAgainstSchemas\u003efalse\u003c/w:ValidateAgainstSchemas\u003e\r\n  \u003cw:SaveIfXMLInvalid\u003efalse\u003c/w:SaveIfXMLInvalid\u003e\r\n  \u003cw:IgnoreMixedContent\u003efalse\u003c/w:IgnoreMixedContent\u003e\r\n  \u003cw:AlwaysShowPlaceholderText\u003efalse\u003c/w:AlwaysShowPlaceholderText\u003e\r\n  \u003cw:DoNotUnderlineInvalidXML/\u003e\r\n  \u003cw:DoNotShadeFormData/\u003e\r\n  \u003cw:Compatibility\u003e\r\n   \u003cw:FootnoteLayoutLikeWW8/\u003e\r\n   \u003cw:ShapeLayoutLikeWW8/\u003e\r\n   \u003cw:AlignTablesRowByRow/\u003e\r\n   \u003cw:ForgetLastTabAlignment/\u003e\r\n   \u003cw:LayoutRawTableWidth/\u003e\r\n   \u003cw:LayoutTableRowsApart/\u003e\r\n   \u003cw:UseWord97LineBreakingRules/\u003e\r\n   \u003cw:SelectEntireFieldWithStartOrEnd/\u003e\r\n   \u003cw:UseWord2002TableStyleRules/\u003e\r\n  \u003c/w:Compatibility\u003e\r\n  \u003cw:BrowserLevel\u003eMicrosoftInternetExplorer4\u003c/w:BrowserLevel\u003e\r\n \u003c/w:WordDocument\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003cw:LatentStyles DefLockedState=\"false\" LatentStyleCount=\"156\"\u003e\r\n \u003c/w:LatentStyles\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\r\n\u003cstyle\u003e\r\n\u003c!--\r\n /* Style Definitions */\r\n p.MsoNormal, li.MsoNormal, div.MsoNormal\r\n\t{mso-style-parent:\"\";\r\n\tmargin:0in;\r\n\tmargin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:12.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\n /* Page Definitions */\r\n @page\r\n\t{mso-page-border-surround-header:no;\r\n\tmso-page-border-surround-footer:no;}\r\n@page Section1\r\n\t{size:8.5in 11.0in;\r\n\tmargin:1.0in 1.25in 1.0in 1.25in;\r\n\tmso-header-margin:.5in;\r\n\tmso-footer-margin:.5in;\r\n\tmso-paper-source:0;}\r\ndiv.Section1\r\n\t{page:Section1;}\r\n--\u003e\r\n\u003c/style\u003e\r\n\u003c!--[if gte mso 10]\u003e\r\n\u003cstyle\u003e\r\n /* Style Definitions */\r\n table.MsoNormalTable\r\n\t{mso-style-name:\"Table Normal\";\r\n\tmso-tstyle-rowband-size:0;\r\n\tmso-tstyle-colband-size:0;\r\n\tmso-style-noshow:yes;\r\n\tmso-style-parent:\"\";\r\n\tmso-padding-alt:0in 5.4pt 0in 5.4pt;\r\n\tmso-para-margin:0in;\r\n\tmso-para-margin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:10.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-ansi-language:#0400;\r\n\tmso-fareast-language:#0400;\r\n\tmso-bidi-language:#0400;}\r\n\u003c/style\u003e\r\n\u003c![endif]--\u003e\r\n\u003c/head\u003e\r\n\r\n\u003cbody lang=EN-US style=\u0027tab-interval:.5in;text-justify-trim:punctuation\u0027\u003e\r\n\r\n\u003cdiv class=Section1\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003eUNDOCUMENTED\r\nECONOMY\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003eCORPORATE\r\nVIEW\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003eBy\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003eM.\r\nIqbal Patel,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:-.1pt\u0027\u003eChartered Accountant,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;mso-pagination:none;\r\nmso-layout-grid-align:none;text-autospace:none\u0027\u003e\u003cb\u003e\u003cspan style=\u0027color:black\u0027\u003eM.\r\nIqbal Patel \u0026amp; Co., Karachi\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.25pt\u0027\u003eUndocumented\r\nand informal economy is the central problem of the economic and taxation\r\nsystems of the country. But it surprises when \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.35pt\u0027\u003ethe issue is commented by a regulator. The Securities and\r\nExchange \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.25pt\u0027\u003eCommission of\r\nPakistan (SECP)\u0027s Chairman has expressed his concern \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.2pt\u0027\u003eover the state that the size of\r\nundocumented economy is expanding, the \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.45pt\u0027\u003ereason quoted by him is that because the people are not\r\nvoluntarily \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.25pt\u0027\u003epaying taxes,\r\nwhich is a disputable assertion. However, he skipped to \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.3pt\u0027\u003esuggest any answer of the problem to\r\nresolve it which as a regulator he \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.45pt\u0027\u003ewas expected. The State Bank of Pakistan has estimated the size of \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.2pt\u0027\u003einformal economy in Pakistan was around\r\n$34 bln in 2011.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.75pt\u0027\u003eThe\r\nproblem of documentation of economy is related to \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.4pt\u0027\u003ecorporate laws as much as it is related\r\nto tax laws. There are number of \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.1pt\u0027\u003e- provisions under sections 230-247 and in the Fourth and Fifth Schedules\r\n\u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.65pt\u0027\u003eetc. of the Companies\r\nOrdinance, 1984 (CO) which provides for \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.2pt\u0027\u003edocumentation of business transactions making the Board of\r\nDirectors of \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.25pt\u0027\u003ethe\r\ncompanies responsible to keep proper books of accounts recording \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.4pt\u0027\u003etherein the transactions concerning all\r\nmoney received, expanded in \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.15pt\u0027\u003erespect of which the receipt and expenditure take place, all purchases\r\nof goods and assets, the liabilities etc. of the company which are open for\r\ninspection by the SECP. Thereby the financial activities of the corporate \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.2pt\u0027\u003esector are fully documented.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.65pt\u0027\u003eFurthermore\r\nthe directors and the principal officers of a \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.3pt\u0027\u003ecompany are made accountable they will be guilty of an\r\noffence if they \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.35pt\u0027\u003eor any of\r\nthem failed to comply with, intentionally or otherwise, the \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.15pt\u0027\u003estatutory requirement of maintaining\r\nrecords. In that case they shall be \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.2pt\u0027\u003epenalized for the offence awarding punishment of imprisonment or a fine \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.3pt\u0027\u003eor both. The objectives of the\r\naforesaid statutory requirements and the \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.4pt\u0027\u003estrict measures are to ensure that the accounts should\r\npresent true and \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003efair view\r\nof the state of the affairs of the company, safeguard the interest of the\r\nminority shareholders and the exchequer too.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.05pt\u0027\u003eMoreover,\r\nin order to strengthen the documentation system more \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.3pt\u0027\u003ereliable and accountability of the\r\ndirectors and the principal officers of \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.25pt\u0027\u003ethe company in managing the affairs of the company and to\r\nenhance the confidence of the minority shareholders, the CO requires the\r\ndirectors of \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003ea company to\r\nget the accounts audited by an external auditors who inter \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.5pt\u0027\u003ealias others certify in their report\r\nthat the company has maintained \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.15pt\u0027\u003eproper accounts in compliance with the CO and the accounts reflects true\r\n\u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003eand fair view of the state\r\nof the affairs of the company.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003eMoreover,\r\nto ensure the compliance a well monitoring system is \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.3pt\u0027\u003ein place whereby a company is required\r\nto submit copies of the audited \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.4pt\u0027\u003eaccounts to the SECP besides to the shareholders. Incidentally it is\r\nworth \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.3pt\u0027\u003eto mention that the\r\nInstitute of Chrartered Accountants of Pakistan and \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.55pt\u0027\u003eThe Institute of Cost and Management\r\nAccountants jointly award \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.15pt\u0027\u003eCorporate\r\nExcellent award every year to those listed companies whose \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.45pt\u0027\u003epresentation of annual accounts found\r\nto be excellent in respect of \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.25pt\u0027\u003esharing information etc, with their members but interestingly the list\r\nof \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.05pt\u0027\u003esuch Companies\r\nincludes normally repeatedly almost the same companies.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.05pt\u0027\u003eSimilar\r\nis the case with the Karachi Stock Exchange who award \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.55pt\u0027\u003eannually Top Companies Award to the\r\nCompanies who distribute \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.25pt\u0027\u003ehandsome\r\nreturn to their shareholders, however, it is observed from the \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.35pt\u0027\u003elist of such companies include\r\nrepeatedly almost same companies. It \u003c/span\u003e\u003cspan style=\u0027color:black\u0027\u003ereflects\r\nthat over 95% listed companies do not share information with the \u003cspan\r\nstyle=\u0027letter-spacing:.4pt\u0027\u003eshareholders or do not pay them adequate return on\r\ntheir investment. \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eThis aspect also\r\nneeds to be looked into by the regulators concerned.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.55pt\u0027\u003eThe\r\npurpose of high lightening the detail of the measures \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.4pt\u0027\u003eprovided in the CO for documentation in\r\ncorporate sector and their \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.15pt\u0027\u003eenforcement\r\nthrough the SECP, is to emphasize the fact that even though \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.05pt\u0027\u003ethe corporate sector is well\r\ndocumented but whether this sector fulfils its \u003c/span\u003e\u003cspan style=\u0027color:black;\r\nletter-spacing:.2pt\u0027\u003eobligation paying due income tax, if the answer is\r\nnegative, then it needs to fix the responsibility for failure to bring the\r\nsector into tax net fully.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.25pt\u0027\u003eThe\r\nSECP has registered the total corporate portfolio of 63,226 \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.45pt\u0027\u003eas on November 30, 2012. It includes over\r\n80% private companies \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.7pt\u0027\u003ebesides\r\nlisted or unlisted public companies and others. Though \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.4pt\u0027\u003ecomparing of registration of companies\r\non monthly basis evidenced \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:.2pt\u0027\u003egrowth\r\nof corporate sector which is a healthy sign and reflects expansion \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.35pt\u0027\u003eof documented formal sector, but\r\ncomparing registration of companies \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.1pt\u0027\u003eon yearly basis, it indicates graph has fallen from 6000 companies were \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.15pt\u0027\u003eregistered in 2005-2006 to 3000 in\r\n2009-2010.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027color:black;letter-spacing:.3pt\u0027\u003eWhen\r\ncompared the companies registered with the SECP with \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.5pt\u0027\u003ethe number of income tax returns filed\r\nWith the tax authorities, it \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.45pt\u0027\u003epresents very dismal picture. The tax departments received 21,000 \u003c/span\u003e\u003cspan\r\nstyle=\u0027color:black;letter-spacing:.15pt\u0027\u003ecorporate returns in 2010 when there\r\n56000+ companies were registered \u003c/span\u003e\u003cspan style=\u0027color:black;letter-spacing:\r\n.2pt\u0027\u003ewith the SECP.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003eIn defense for low\r\nfilers one may argue that the companies \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eregistered with the SECP included dormant and defunct companies that \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003edid not carry out any business activity. Even\r\nthough if 12,000 such \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003ecompanies as\r\nwere on the record of the SECP on June 30, 2010, is \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003eexcluded even then non-filers from corporate\r\nsector constitutes over 50% \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.6pt\u0027\u003eindicates\r\nvery large size of the tax evaders were from documented \u003c/span\u003esector.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eThere are also\r\ndormant companies over one-third of around 700 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.25pt\u0027\u003elisted companies of Karachi Stock Exchange. The question bothered is \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.55pt\u0027\u003ewhether the issue has been probed by the\r\nregulators concerned, the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003ereason and\r\nthat whether the sponsors or directors of such companies are holding same\r\nposition in other companies.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eFurther analysis of\r\ncorporate returns by the tax authorities in \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.15pt\u0027\u003erespect of declaration of income, revealed that majority of the\r\ncompanies \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eeither have declared loss\r\nor nil income. In fact corporate profitability \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.55pt\u0027\u003erecorded an impressive growth of 20% on year-to-year basis to \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003eRs.86.2 bln. Nevertheless the question is that how\r\na company is \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003esurviving over the years\r\nby continually if it is sustaining losses.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.6pt\u0027\u003eFurther the section\r\n231 of the CO provides full proof of \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.8pt\u0027\u003emonitoring\r\nprocess to ensure the compliance with the statutory \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.6pt\u0027\u003erequirements to document the business activities of\r\na company. It \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003eprovides that the books\r\nof accounts of every company are open to \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003einspection by the SECP.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eThe CO provides for\r\nmonitoring of the affairs of the companies by the SECP through their annual\r\naccounts besides other measures. It \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.6pt\u0027\u003eempowers\r\nthe SECP to take action against a company even whose \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eliquidity or debt-equity ratio has deteriorated\r\nbelow the specified level or \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003enon-declaration\r\nof dividend or sustaining losses etc. The SECP .under \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003eany such situation is required to investigate the\r\naffairs of a company, it \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.65pt\u0027\u003emay appoint\r\nadministration to take over the management of such \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003ecompany or even change the directors of the\r\ncompany.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003eThe KESC is listed\r\ncompany on all the three Exchanges is a \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eclassical example. It has been in losses for years with negative margins\r\n\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eand is subject to mismanagement too\r\nyet it is doing its business without \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003einterruption\r\nand questioning by the regulators. Similar is the case with \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003etextile companies where the sponsors are getting\r\nricher despite declaring \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003elosses. It is\r\nthe biggest sector but contribute little tax revenue to the \u003c/span\u003eexchequer.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.65pt\u0027\u003eFurther the\r\nnon-performing loans are piling up, the major \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eborrowers are from corporate sector that are getting the NPL written off\r\nor waiver of the loans by the banks. The investigation as to where this \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003emoney was expanded by the companies or what were\r\nthe causes for their \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003efailure to repay\r\nit etc requires answers and needs probed by the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eregulators, the SECP or the SBP who collects the audited annual \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003eaccounts and other returns regularly from the\r\ncompanies/banks.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003eFurther more out of the 63,000+ companies registered\r\nwith the \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eSECP around 51,000 i.e. 80% are\r\nprivate companies. This mushroom \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003egrowth\r\nof the private companies is in fact by-product of the listed \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003ecompanies who siphoned off their fund to their\r\nassociated private \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003ecompanies. Thereby\r\ntheir associate companies prosper at the cost of minority shareholders of the\r\nlisted companies which discloses losses all \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.4pt\u0027\u003ethe time, depriving the shareholders of their due return on their \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003einvestment besides evasion of due income tax.\r\nThough the CO has \u003c/span\u003elegalized the financing to associated companies but it\r\nrequires revision \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003ekeeping in view the ground\r\nreality of its misuse and adverse impact on \u003c/span\u003ethe interest of the minority\r\nshareholders.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003eThe case of\r\nPakistan is very unique in the world. Though it feels \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.15pt\u0027\u003econstrain of resources on one hand and runs State\r\naffairs through bank \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003eborrowing, both\r\ninternal and external. The country\u0027s debt servicing alone \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.1pt\u0027\u003ehas crossed $1 billon mark during the first\r\nquarter or FY 2012-13 mainly \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003ebecause\r\na high burden of foreign debt and IMF loan repayment but the \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003etax policy of the country spares milky cows and\r\nthe weak goats are \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eforced to pay\r\ntaxes for those who have managed lawfully to remain out \u003c/span\u003eof tax net.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eThe extent of\r\nlavish expenditures by the rulers can be judged \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.4pt\u0027\u003ethat the Prime Minister exhausted the fund of Rs.22 bln budgeted \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003efor the year 2012-2013 within five months in\r\nNovember 30, 2012, he was approved further Rs. 10 bln without accountability of\r\nthe fund \u003c/span\u003eexpended.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eAlthough the\r\ncountry is in need of the resources, it is striving to improve its\r\nTax-GDP-ratio which is the lowest in the region, but the elite \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003eclass is enjoying tax exemptions. There is no\r\npolitical will to introduce \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003etax\r\nreforms replacing the existing discriminatory tax policy with equity \u003c/span\u003ebased\r\ntax policy to expand tax base.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003eThe world leaders\r\nand the international donors have realized this \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eweakness of tax policy of the country, have, therefore, asked the\r\ngovernment to collect tax from the wealthy class as they showed \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003ereluctant for financial assistance to Pakistan out\r\nof their tax payers\u0027 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003emoney. This is a\r\nblack spot on our creditability as a nation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003eTake the example of\r\nPresident Barrack Obama who is striving \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.5pt\u0027\u003efor legislation of fiscal cliff to extend tax cuts for middle-class \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eAmericans in order to try to preserve them for the\r\nwealthy raising tax \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.5pt\u0027\u003erates on the\r\nwealthiest Americans that will lead to faster economic \u003c/span\u003egrowth.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003eWhereas the\r\nwealthiests in Pakistan are protected through \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003ePresidential Ordinance allowing them tax free earning through capital \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.45pt\u0027\u003egains irrespective of their sources of investment\r\nin share business. \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eThereby informal\r\neconomy has been recognized by the government \u003c/span\u003eformally.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003eThe efforts for\r\ndocumentation of economy require forming a \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.75pt\u0027\u003estrategy jointly by the regulators FBR, SBP and SECP firstly to \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003estrengthen their compliance process instead of\r\nshort-cuts like amnesty \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003eschemes,\r\nexercise vigilance and finally to co-ordinate in exchanging of \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.55pt\u0027\u003ethe data and relevant information of the persons in\r\nrespect of their \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eincome etc. among\r\nthem.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;mso-pagination:none;mso-layout-grid-align:\r\nnone;text-autospace:none\u0027\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\u003c/body\u003e\r\n\r\n\u003c/html\u003e\r\n"