Balance of Payment

Balance of Payments Definition: BOP is a record of sparing transaction in the midst of the residence of the chivalricoral and the rest of the conception during the period of one year. Balance of Trade Definition: BOT is the difference between the various export and import of visible goods of a country during a time. If the entertain of visible export exceed than the value of visible import than the equilibrise of trade is said to be in favor. OR The value of goods and services bought and sold in the world market. Cause of Adverse Balance of Payment Since independence of Pakistan, fit of requital condition was not satisfactory. Accept few years, Pakistan is liner deficit in her equilibrize of payment. The deficit is met by the loans. The deficit is increasing solar day by day. Import Of Machinery Developing countries ar importing machines and technology to improve the industrial sector. It has made the balance of payment unfavorable because the value of capital goods is increasing day by day and we want to industrialize our economy. Export Of naked as a jaybird Material Exports of Pakistan depend upon raw framework and semi-manufactured goods. The price of raw material is very low in the world market. So our balance of payment remains unfavorable.

For instance the product of cotton trim down in 1995 due to virus, so it also abnormal adversely our balance of payment, because we imported cotton instead of exporting. Political Unrest many another(prenominal) less developed countries like Pakistan are facing political unrest, which is the main cause of low production. Ultimately balance of payment remains unfavorable. In this situation investors fears to do the investment. Import Of Wheat Pakistan is facing the food shortage problem and spending a considerable amount of foreign exchange on its import. In the past we imported many times like wheat and it has affected our balance of payment. Increase In The Sick Industrial Units payable to Nationalization a number of units... If you want to get a full essay, order it on our website: Ordercustompaper.com

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