Crossword Genius

Catch PA stealing bit of hard-earned capital (7)

Ross

I believe the answer is:

baghdad

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'catch pa' is the definition.
Although both the answer and definition are singular nouns, I cannot see how they can define each other.

'stealing bit of hard-earned capital' is the wordplay.
'stealing' means one lot of letters goes inside another.
'bit of' suggests taking the first letters.
'earned capital' becomes 'bagdad' (Bagdad is an example. I am not sure about the 'earned' bit.).
The initial letter of 'hard' is 'h'.
'h' put inside 'bagdad' is 'BAGHDAD'.

Can you help me to learn more?

(Other definitions for baghdad that I've seen before include "Capital of Iraq" , "Iraqi capital" , "city abroad" , "capital abroad" .)

I've seen this clue in The Independent.
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