1.

1). Large inflow of foreign currency2). Overvaluation of the domestic currency3). Damaged domestic industry of Pakistan4). 1 and 2

Answer»

The passage states that the situation of ‘Dutch Disease’ has been created in PAKISTAN, which is characterized by INFLOW of foreign currency while the domestic currency is overvalued.

So, 1 and 2 are correct.

The Dutch Disease, as per the passage, has damaged Pakistan’s domestic industry; but it is not a feature of the phenomenon in itself.

So, option 3 is incorrect.

Therefore, the correct answer is option 4.



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