DEVELOPMENT RESEARCH AND MANAGEMENT SERVICES (PVT), LTD.
This study, the first broad description of Pakistan"s informal sector, seeks to analyze the relevance of Hernando de Soto"s book, "The Other Path," to Pakistan"s political, economic, and administrative environment and to document specific examples where legalization of informal activity would result in major improvements in economic efficiency.
Hussein, Maliha; Husain, Tariq · 1991

Abstract
The study examines seven subsectors of the informal sector (financial and commodity markets, housing and human settlements, manufacturing, trade and commerce, health, education, and transport) in eight cities (Karachi, Peshawar, Faisalabad, Gujranwala, Sialkot, Lahore, Rawalpindi, and Islamabad). The study"s empirical findings are presented under three main headings: the sources of informality in each of the seven subsectors studied; possibilities for economic and administrative reforms; and major issues that need additional research. The study also systematically examines each subsector with respect to: its extent and contribution to the economy; relevance to de Soto"s thesis; requirements for registration; requirements for conducting business; taxes, duties, audits, and government inspections; organizations and trade associations; relationship to the formal sector; and potential for gains from legalization. Bibliography included. (Author abstract, modified)
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