Balance of Payment and Balance of Trade

balance of payment and balance of trade

Differentiate between balance of payment and balance of trade. Also discuss the role of International Monetary Fund in the economy of Pakistan. Balance of Payment : Balance of payments is a systematic record of all economic transactions of visible and invisible goods. The export receipts and import payments on visible goods are the balance of the trade account and is a part of the balance of payments. However, there • more to it i.e. The export receipts and import  payments. of all the services rendered is also a part of the balance of payments. Thus to add up this we may say that the balance of payments shows all the record of all the payments and receipts of a country in terms of foreign exchange. According to the original concept, the balance of international payments of a country (the home country) equalled the net receipts or payments, or changes in […]

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