Pakistan’s government has publicised its interest in registering the grey economy through the Finance Bill 2015 that solely features a framework of tax collection. Banks have been advised to report transactional information to the Federal Board of Revenue through section 165(b) of the aforesaid bill. A heavy focus has been put on conducting audits of already registered taxpayers, and an amnesty scheme has been announced to achieve pertinent goals. Noticeably, there is no provision for the initiative of registering country’s informal economy. Unregistered or grey economy constitutes economic activities for which the government has no record and mechanism. This illegitimate zone is kept hidden to evade taxes deliberately. It is aggravating that registration of all trades has not been achieved since Pakistan came into being. Pakistan’s population kept on increasing steadily, yielding an upward tendency in demand of goods and services. It motivated more people to plunge into the sphere of effective population. Consequently, the volume of unregistered economy has expanded. Excluding agriculture, Pakistan is estimated to have around 36 percent untaxed underground economy, which is much higher than that of its neighbouring and developed countries. For instance, India and the United States stand at 22 and 9 percent respectively. Unregistered businesses are consuming state resources under the table and posing a threat to accumulation of state revenues. Thus, registration of grey economy remains a gigantic policy challenge in the country. It is estimated that 65 percent of effective population in Asia is engaged in informal employment, whereas these statistics are rarely available for Pakistan due to intricacy of the matter. However, historic reports of the Labour Survey of Pakistan indicate that 77.4 percent of total working rural population is engaged in informal employment, whereas the corresponding figure for urban folks is 69.9 percent. According to the International Labour Organisation, key sectors of employment in grey economy of Pakistan include wholesale and retail, community and personal services, construction and transport. Not a single grocery is registered in villages, small towns and in some parts of metropolitan areas. Cottage industry and handicrafts are other obvious sectors working under a shroud. Pakistan is estimated to have around 36 percent untaxed underground economy, which is much higher than that of its neighbouring and developed countries It is a fact that players of grey economy can easily conceal their net worth. Around 64 percent of informal workers are self-employed, and they can be deceptive in magnifying their financial gains. A foolproof collection of taxes, therefore, is directly associated with successful registration of every economic niche in the country. Informal economy in Pakistan has widespread socio-economic implications. It is a den of child labour; 168 million children are engaged in child labour in the country. If not tackled properly, it will definitely keep on facilitating tax evasion, erosion of national wealth, interruption in exact calculation of gross national income, pitfalls in budgetary allocations, and complexities in formulation of commensurate fiscal policies and development strategies. Besides contraction of revenues, black money and corruption are two other monsters that grow under the shade of unregistered economy. An increase in the volume of unregistered economy means less revenues and higher tax rates for those working in the legal economy, resulting in serious damage to their tax morale. The greater number of informal workers is an indicator of higher unemployment in the national economy. Government should take pragmatic actions for rectifying this economic irregularity. One way to repair the prevalent condition is accumulating national wealth by registering all existing businesses. Tax amnesty can lucratively support this task. There is dire need of formulating some specialised institution for registration of large and small businesses and counting of self-employed population at local level. Responsibility of registration can be assigned to the union councils. The Securities and Exchange Commission of Pakistan should assume the responsibility of chalking out a roadmap that is equally implementable in rural economy. Revising labour market regulations, and animating a sense of social responsibility in the minds of people can yield positive results. Mass media can play an essential role in identifying operators of unregistered economy, conspicuous consumption of individuals and masses and highlighting the significant tax evaders. It would be beneficial to collect precise data to cement the foundations of policy revision. Large-scale creation of employment and opportunities to start micro businesses can bear fruit. It must be realised that the most prosperous countries of the world have done everything for reduction in volume of unregistered economy. For instance, Switzerland has recorded 373,000 unregistered workers, which is equivalent to 4.6 percent of its total population. Pakistan should follow the model of developed countries and take appropriate moves to formulate a holistic nationwide policy to pushup its revenues. Registering the unregistered seems to be the ultimate solution. The writer can be reached at waheedmba@yahoo.com