Balance of Payment

"The net difference between exports and imports (or receipt and payments) of a country during financial year".
The balance of payment can be represented in following forms:

1. Current Account: Transaction of tangible (visible) and intangible (invisible) goods. It shows transaction of goods and services.
2. Capital Account: It shows the changes in the monetary assets and liabilities of a country. Changes in assets arise due to foreign exchange in possession, capital invested by Pakistan abroad, loan extended by Pakistanis etc. Changes in liabilities arise due to investment by the foreigners in the country, loan advanced by foreign residents. etc.