ROLE OF INFORMAL SECTOR IN DRIVING ECONOMIC CHANGES: AN EMPIRICAL EVIDENCE FOR PAKISTAN

The current study depends on time series data for 1975-2019, which considers the informal sector development as strategy factors to achieve economic development in Pakistan. For this, we have utilized different informality indicators to check the impact of underground economy on economic development. The ARDL approach is utilized to quantify the affiliation among the selected variables. The results confirmed the existence of a significant negative relationship between the selected variables. It is suggested that the government should introduce some welfare programs to control the fertility rate and population growth rate. The government should establish tanning centers, and it should indicate different programs for the skilled development of the workers. It should also explore overseas job opportunities that not only reduce the unemployment of an economy but also enhance the remittances. Policymakers and SBP should keep the inflation rate stable. It will be helpful for the achievement of stable economic growth