Foreign direct investment entering Pakistan is normally recorded in which part of the balance of payments?
Correct answer: B. Financial account
- A. Current account
- B. Financial account
- C. Trade account
- D. Official reserve account only
Explanation
Foreign direct investment is a financial flow involving ownership of assets or enterprises and is recorded in the financial account. The current account records goods, services, primary income and current transfers.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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