For decades, hawala and hundi systems have operated parallel to formal banking channels, offering speed, anonymity, and convenience often at the cost of transparency and legality. While these informal networks have historically served communities with limited banking access, they have increasingly become conduits for illicit financial flows, tax evasion, and capital flight. Equally important is the emphasis on channeling remittances through formal banking systems. However, the government must recognize that simply restricting informal channels is not enough; it must also make formal systems more efficient, accessible, and cost-effective. Pakistan’s economic resilience depends on broadening the tax base, curbing illicit financial flows, and integrating informal sectors into the formal economy.

Source: The Patriot March 18, 2026 19:11 UTC