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 […]
Balance of Payment and Balance of Trade
