Q: State major exports of Pakistan.
A: Cotton, cotton your, cotton cloth, rice, leather and leather products, surgical instruments, sports goods, carpets, hosiery, and readymade garments.
Q: State main imports of Pakistan.
A: Machinery, petroleum and its products, Chemicals, transport goods edible oil, iron and steel, fertilizer anti and tea.
Q: Write down the reasons for the deficit in Pakistan’s balance of payments.
A: 1) Increase in imports 2) Decline in exports 3) Inflation 4) Increase in external debt
Q: What is meant by the Economic Cooperation Organization (ECO)?
A: The Organization Economic Cooperation Organization (ECO) was established in January 1985 to replace the RCD. The Economic Cooperation Organization (ECO) has a total membership of ten. Namely Pakistan, Iran, Turkey, Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan and Afghanistan.
Q: Write down the main objectives of the Economic Cooperation Organization (ECO).
A: 1) Promotion of bilateral trade 2) Establishment of new industries with joint ventures 3) Increase economic growth and productivity
Q: What is meant by SAARC?
A: SAARC stands for South Asian Association for Regional Cooperation. SAARC was formally established in 1985 in Dhaka. The main purpose of this organization is to promote social and cultural cooperation. SAARC member countries include Pakistan, India, Sri Lanka, Bangladesh, Maldives and Nepal.
Q: What is meant by external exchange rate?
A: The exchange rate refers to the rate at which the currency of one country is exchanged for the currency of another country.
Q: Write the definition of constant / uniform / fixed exchange rate.
A: A fixed exchange rate refers to an exchange rate determined by a country’s monetary agency or central bank.
Q: What is meant by a flexible exchange rate?
A: Under this system, the exchange rate is determined by the supply and demand forces of foreign currency.
Q: What is meant by the Devaluation of Currency?
A: Devaluation is a case in which a country deliberately devalues its currency in order to increase its exports or reduce its imports.
Q: What is meant by Protection Policy?
A: The Protection Policy refers to a policy whose main purpose is to encourage the country’s infant industries and protect them from the competition of foreign products.