Economy
Results
#1. The largest single source country of remittances to Pakistan is generally:
Saudi Arabia is consistently the largest source of remittances to Pakistan. The United Arab Emirates is the second largest.
#2. Livestock in Pakistan is significant chiefly because it:
Livestock supports dairy and meat production and provides income stability for small farmers. It now contributes more to agricultural value addition than crops.
#3. The Chashma nuclear power plants were developed with the cooperation of:
The Chashma plants were built with Chinese assistance. KANUPP was originally supplied by Canada.
#4. A notable feature of Pakistan’s external sector in FY2026 was that remittances:
Remittance inflows surpassed Pakistan’s export earnings during FY2026. Economists have identified this as a sign of structural dependence on overseas workers.
#5. The 2025 monsoon floods affected Pakistan’s agriculture sector by:
The floods damaged large areas of farmland during FY2026. Despite this, overall agricultural growth rose to about 2.89 percent from 1.53 percent.
#6. A major structural weakness of Pakistan’s export sector is its:
Pakistan’s exports are concentrated in a narrow range of low value-added products. This limits earnings growth compared with regional competitors.
#7. The Public Sector Development Programme refers to:
The PSDP covers the federal government’s development expenditure for the year. It is announced with the annual budget.
#8. Which fertiliser nutrient is most heavily used in Pakistani agriculture?
Nitrogenous fertilisers, chiefly urea, dominate fertiliser use in Pakistan. Imbalanced nutrient application reduces yield efficiency.
#9. Deforestation in Pakistan poses a serious risk chiefly because it:
Forest loss worsens erosion and flood damage. Pakistan’s forest cover is low relative to international norms.
#10. The JF-17 Thunder aircraft is produced jointly by Pakistan and:
The JF-17 Thunder is a joint Pakistan-China programme. It is assembled at the Pakistan Aeronautical Complex, Kamra.
#11. According to the Economic Survey 2025-26, agriculture contributes approximately what share of Pakistan’s GDP?
Agriculture contributed about 23.4 percent of GDP in FY2026. This was among the lowest shares recorded for the sector.
#12. The Heavy Mechanical Complex is located at:
The Heavy Mechanical Complex is located at Taxila. It manufactures industrial plant and machinery.
#13. The ship breaking industry of Pakistan is located at:
Gadani in Balochistan is Pakistan’s principal ship breaking yard. It is among the largest such facilities in the world.
#14. The State Bank of Pakistan was established in:
The State Bank was inaugurated by Quaid-e-Azam on 1 July 1948. It replaced the Reserve Bank of India’s role in Pakistan.
#15. Pakistan’s largest crop by cultivated area is:
Wheat occupies the largest cultivated area in Pakistan. It is the country’s staple food grain.
#16. Fisheries in Pakistan are concentrated mainly along the coasts of:
Marine fisheries operate along the Sindh and Balochistan coasts. Karachi is the principal fish harbour.
#17. The China-Pakistan Economic Corridor connects Gwadar with which Chinese region?
CPEC links Gwadar port with Kashgar in China’s Xinjiang region. It forms part of the Belt and Road Initiative.
#18. Inflation refers to a sustained increase in:
Inflation is a continuing rise in the general level of prices. It reduces the purchasing power of money.
#19. SMEDA in Pakistan is the authority responsible for:
The Small and Medium Enterprises Development Authority supports SME growth. It provides policy input and business development services.
#20. The GSP Plus status granted to Pakistan by the European Union provides:
GSP Plus allows duty concessions on many Pakistani exports to the EU. It is conditional on compliance with international conventions.
#21. The Rashakai Special Economic Zone is located in which province?
The Rashakai SEZ is located in Nowshera district of Khyber Pakhtunkhwa. It is one of the priority CPEC economic zones.
#22. According to the Economic Survey 2025-26, the size of Pakistan’s economy reached approximately:
Nominal GDP reached about Rs126.9 trillion, equivalent to roughly $452.1 billion. This was the largest recorded size of Pakistan’s economy.
#23. According to the Economic Survey 2025-26, Pakistan’s GDP growth rate for FY2026 was:
Real GDP growth was recorded at 3.7 percent in FY2026. This was higher than the previous year but below the official target of 4.2 percent.
#24. Land reforms in Pakistan are generally regarded as having:
Exemptions and transfers within families blunted the impact of the reforms. Large landholdings remain a feature of rural Pakistan.
#25. Pakistan’s largest trading partner for imports in recent years has generally been:
China has been Pakistan’s largest source of imports in recent years. Machinery and intermediate goods dominate this trade.
#26. Abiana in Pakistan refers to:
Abiana is the charge levied on farmers for canal irrigation water. Recovery rates have historically been low.
#27. Which sector contributes the largest share to Pakistan’s GDP?
The services sector accounts for the largest share of Pakistan’s GDP. Agriculture and industry together contribute the remainder.
#28. Pakistan has repeatedly entered programmes with which international institution for balance of payments support?
Pakistan has entered numerous IMF programmes to address balance of payments pressures. These involve fiscal and structural conditions.
#29. The State Bank of Pakistan functions as the country’s:
The State Bank of Pakistan is the country’s central bank. It formulates monetary policy and regulates the banking system.
#30. Pakistan has become a net importer of cotton primarily because:
Falling domestic output alongside strong textile demand has made Pakistan a cotton importer. This raises the industry’s input costs.
#31. Gujranwala and Sialkot are best known industrially for:
These cities host clusters of small and medium engineering and export industries. Sialkot in particular is known for sports and surgical goods.
#32. Agricultural income tax in Pakistan is constitutionally a:
Agricultural income tax falls within provincial jurisdiction. This has historically limited its effective collection.
#33. A criticism frequently made of the Green Revolution in Pakistan is that it:
Larger landowners were better placed to afford inputs and machinery. This widened rural income disparities.
#34. The benchmark index of the Pakistan Stock Exchange is the:
The KSE-100 is the principal benchmark index of the Pakistan Stock Exchange. It tracks the largest listed companies by market capitalisation.
#35. Tubewell irrigation in Pakistan expanded rapidly during the:
Tubewell numbers grew rapidly during the Green Revolution of the 1960s. They supplement canal supplies with groundwater.
#36. Excessive reliance on groundwater in Pakistan has led chiefly to:
Over-extraction has lowered water tables in many areas and degraded water quality. This poses a long-term threat to agriculture.
#37. The principal source of federal tax revenue in Pakistan is:
Indirect taxes, particularly sales tax, account for the largest share of federal revenue. This gives Pakistan’s tax structure a regressive character.
#38. A persistent obstacle to attracting foreign investment in Pakistan has been:
Investors cite policy inconsistency, security and high input costs as deterrents. These factors have limited FDI inflows.
#39. Which of the following is a kharif crop?
Cotton is sown in summer and harvested in autumn, making it a kharif crop. Gram, barley and mustard are rabi crops.
#40. Support prices for crops in Pakistan are announced mainly to:
Support prices assure farmers a minimum price for specified crops. Wheat has historically been the main crop covered.
#41. Crops sown in winter and harvested in spring in Pakistan are called:
Rabi crops are sown around October and November and harvested in spring. Wheat and gram are the principal rabi crops.
#42. The Pakistan Agricultural Research Council is responsible for:
PARC coordinates and supports agricultural research nationally. It works with provincial research institutions.
#43. According to the Economic Survey 2025-26, Pakistan’s per capita income stood at approximately:
Per capita income rose to about $1,901 in FY2026 from $1,751 the previous year. The increase reflected both growth and exchange rate stability.
#44. Special Economic Zones under CPEC are intended primarily to:
SEZs offer tax incentives and developed infrastructure to attract investors. Rashakai and Dhabeji are among the designated zones.
#45. The Pakistan Aeronautical Complex is located at:
The Pakistan Aeronautical Complex at Kamra is engaged in aircraft manufacture and overhaul. The JF-17 Thunder is assembled there.
#46. The bulk of Pakistan’s irrigation water comes from:
The Indus basin supports the world’s largest contiguous canal irrigation network. Agriculture depends heavily on this system.
#47. Pakistan’s first nuclear power plant, KANUPP, is located at:
KANUPP was Pakistan’s first nuclear power plant and is located near Karachi. It began operating in the early 1970s.
#48. The National Agriculture and Food Security Council was established to:
The Council was created as part of broader food security planning. It was cited in the Economic Survey as supporting agricultural performance.
#49. The 7th NFC Award, which significantly increased the provincial share, was announced in:
The 7th NFC Award was announced in 2009 and implemented from FY2011. It raised the provincial share of the divisible pool substantially.
#50. The backbone of Pakistan’s rural economy is:
Agriculture provides livelihoods to a large share of the rural population. It also supplies raw materials to major industries.
#51. The National Finance Commission Award determines the:
The NFC Award allocates resources from the divisible pool among the federation and provinces. Awards are announced periodically.
#52. Benazir Income Support Programme provides:
BISP delivers unconditional and conditional cash transfers to poor households. It is Pakistan’s largest social safety net programme.
#53. Circular debt in Pakistan’s power sector refers to:
Circular debt builds up when payments are not made across generation, distribution and government. It has been a persistent structural problem.
#54. Which of the following is a rabi crop?
Wheat is Pakistan’s main rabi crop. Cotton, rice and sugarcane are kharif crops.
#55. Glacial Lake Outburst Floods in Pakistan occur mainly in:
GLOF events occur in the glaciated northern regions. They threaten downstream settlements and infrastructure.
#56. Nationalisation of major industries in Pakistan began in:
Large-scale nationalisation began in January 1972 under Zulfikar Ali Bhutto. Banks and insurance followed in 1974.
#57. Pakistan’s first Five Year Plan covered the period:
The First Five Year Plan ran from 1955 to 1960. Political instability affected its implementation.
#58. According to the Economic Survey 2025-26, the livestock sub-sector accounts for approximately what share of agricultural value addition?
Livestock accounted for about 62.4 percent of agriculture’s value addition in FY2026. It contributed roughly 14.6 percent of national GDP.
#59. Basmati rice grown in Pakistan is chiefly valued for its:
Basmati is prized internationally for its aroma and long grain. It is a significant export earner for Pakistan.
#60. The informal or undocumented economy in Pakistan is significant chiefly because it:
A large informal sector narrows the tax base and distorts economic data. Documentation of the economy remains a persistent policy challenge.
#61. Pakistan’s currency, the rupee, is issued by the:
The State Bank has the sole authority to issue currency notes. The one rupee note is issued by the government.
#62. CPEC is part of China’s broader initiative known as the:
CPEC is a flagship project of China’s Belt and Road Initiative. It covers infrastructure, energy and industrial zones.
#63. Textiles account for approximately what share of Pakistan’s total exports?
Textiles and related products make up well over half of Pakistan’s export earnings. This makes the export base narrow and vulnerable.
#64. Water scarcity in Pakistan is worsened primarily by:
Pakistan has limited reservoir storage relative to its river flows. Flood irrigation and canal seepage also cause substantial losses.
#65. A trade deficit occurs when a country’s:
A trade deficit arises when the value of imports is greater than that of exports. Pakistan has recorded persistent trade deficits.
#66. According to the Economic Survey 2025-26, Pakistan’s poverty rate was reported at approximately:
The survey reported a poverty rate of about 28.9 percent, indicating that nearly one in three Pakistanis lived at or below the poverty line. The figure rose compared with earlier estimates.
#67. Privatisation in Pakistan gained momentum during the government of:
A structured privatisation programme was launched in the early 1990s. It reversed much of the earlier nationalisation.
#68. The main reason for low crop yields per acre in Pakistan compared with other countries is:
Yield gaps arise from seed quality, water management and limited technology adoption. Pakistan’s yields lag behind comparable producers.
#69. The largest manufacturing industry of Pakistan is:
Textiles form Pakistan’s largest manufacturing sector and its principal export industry. The sector depends heavily on domestic cotton.
#70. The centre of Pakistan’s textile industry is:
Faisalabad is the principal centre of the textile industry. It is known as the Manchester of Pakistan.
#71. The Green Revolution in Pakistan during the 1960s involved chiefly:
The Green Revolution introduced improved seed varieties along with fertiliser and mechanised irrigation. Wheat and rice output rose substantially.
#72. The Second Five Year Plan of Pakistan is generally regarded as:
The Second Plan of 1960 to 1965 recorded relatively strong growth. It coincided with the early Green Revolution.
#73. Pakistan ranks among the world’s leading producers of:
Pakistan is among the largest milk-producing countries in the world. Dairy forms a major part of the livestock sector.
#74. IMF programmes typically require Pakistan to undertake:
IMF arrangements normally require deficit reduction and structural measures. These often include tax broadening and energy price adjustment.
#75. Sharecropping in rural Pakistan is locally known as:
Batai is the traditional sharecropping arrangement between landowner and tenant. The produce is divided according to agreed shares.
#76. According to the Economic Survey 2025-26, Pakistan’s wheat output was approximately:
Wheat production rose about 4.3 percent to roughly 29.61 million tonnes in FY2026. The previous year’s figure was about 28.40 million tonnes.
#77. Small and medium enterprises are important to Pakistan’s economy chiefly because they:
SMEs account for a large share of non-agricultural employment and value addition. Access to finance remains a major constraint for them.
#78. According to the Economic Survey 2025-26, agriculture employs approximately what share of Pakistan’s workforce?
Agriculture employed roughly 33.1 percent of the labour force in FY2026. It remains the largest single source of employment.
#79. The five major crops of Pakistan are wheat, rice, sugarcane, maize and:
Cotton is counted among Pakistan’s five major crops. Their combined performance strongly influences agricultural growth.
#80. Pakistan Steel Mills is located at:
Pakistan Steel Mills is situated near Karachi at Bin Qasim. It was established with Soviet assistance.
#81. Cotton is important to Pakistan’s economy chiefly because it:
Cotton feeds Pakistan’s largest manufacturing and export sector. Poor cotton harvests directly affect textile output.
#82. The Federal Board of Revenue is responsible for:
The FBR administers and collects federal taxes including income tax and sales tax. It operates under the Revenue Division.
#83. Foreign Direct Investment refers to investment that involves:
FDI involves a durable interest and management influence in a foreign enterprise. It is distinguished from portfolio investment.
#84. Workers’ remittances in FY2026 reached a record level of approximately:
Remittances reached about $41.6 billion in FY2026, the highest in Pakistan’s history. Saudi Arabia and the UAE were the largest source countries.
#85. The main source of electricity generation in Pakistan’s energy mix has historically been:
Thermal power based on gas, oil and coal has dominated Pakistan’s generation mix. Reliance on imported fuel raises costs and external pressure.
#86. Monetary policy in Pakistan is formulated by the:
The State Bank sets the policy rate and manages monetary conditions. Fiscal policy is handled by the Finance Division.
#87. Pakistan’s cotton production in recent years has been affected chiefly by:
Heat stress, pest damage and shifting of area to other crops have reduced cotton output. This has forced increased cotton imports for the textile sector.
#88. Zarai Taraqiati Bank Limited primarily provides:
ZTBL is Pakistan’s principal agricultural credit institution. It lends to farmers for inputs and equipment.
#89. Pakistan’s tax-to-GDP ratio is generally considered:
Pakistan’s tax-to-GDP ratio is low relative to peer economies. This constrains public spending and increases borrowing needs.
#90. Information technology exports have become significant for Pakistan chiefly because they:
IT and IT-enabled services exports have grown steadily and involve limited imported inputs. They represent one of the few diversifying export categories.
#91. The Economic Survey of Pakistan is published annually by the:
The Economic Survey is the Finance Division’s flagship annual report. It is released shortly before the federal budget each year.
#92. The Ehsaas programme in Pakistan was designed primarily to address:
Ehsaas was launched as a broad poverty alleviation and social protection framework. It incorporated cash transfers and related interventions.
#93. Under the 7th NFC Award, the criteria for distribution among provinces included population and:
The award introduced multiple criteria beyond population for the first time. This benefited the smaller provinces.
#94. Pakistan Steel Mills was established with the technical assistance of:
The mill was built with Soviet technical and financial assistance in the 1970s. It later suffered prolonged operational and financial difficulties.
#95. Land reforms in Pakistan were introduced during the governments of Ayub Khan and:
Ayub Khan introduced land reforms in 1959 and Bhutto did so in 1972 and 1977. Both sets of reforms had limited practical effect.
#96. Large Scale Manufacturing in Pakistan is measured through the:
The Quantum Index of Manufacturing tracks large scale manufacturing output. It is compiled by the Pakistan Bureau of Statistics.
#97. The Planning Commission of Pakistan is primarily responsible for:
The Planning Commission prepares five-year and annual development plans. It also evaluates major public sector projects.
#98. Pakistan Ordnance Factories are located at:
Pakistan Ordnance Factories are based at Wah Cantonment. They produce small arms and ammunition.
#99. Remittances are important for Pakistan’s economy chiefly because they:
Remittances help finance the import bill and strengthen reserves. They partly offset Pakistan’s persistent trade deficit.
#100. According to the Economic Survey 2025-26, sugarcane production in FY2026 was approximately:
Sugarcane output rose about 6.2 percent to roughly 89.45 million tonnes. It was the strongest performer among the major crops.
#101. Pakistan is considered highly vulnerable to climate change primarily because of:
Pakistan faces glacial melt, extreme floods and rising heat despite low emissions. These risks directly threaten agriculture and water supply.
#102. Pakistan’s fiscal year runs from:
Pakistan’s financial year begins on 1 July and ends on 30 June. Budgets are presented in June for the coming fiscal year.
#103. Line losses in Pakistan’s electricity distribution refer to:
Line losses include both technical losses and theft or unbilled consumption. High losses contribute directly to circular debt.
#104. Pakistan’s principal stock exchange is the:
The Pakistan Stock Exchange was formed in 2016 by merging the Karachi, Lahore and Islamabad exchanges. Its benchmark index is the KSE-100.
#105. Inflation in Pakistan is commonly measured through the:
The Consumer Price Index is the principal measure of inflation in Pakistan. It is compiled by the Pakistan Bureau of Statistics.