Remittances sent by Pakistani workers abroad are generally recorded in which part of the balance of payments?
Correct answer: A. Current account as secondary income
- A. Current account as secondary income
- B. Financial account as portfolio investment
- C. Capital account as fixed investment
- D. Reserve account as official borrowing
Explanation
Workers' remittances are current transfers and therefore appear under secondary income in the current account. They are not foreign direct investment because the sender is transferring income rather than acquiring ownership of a business.
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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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