Economy & Finance in Pakistan (Budget, Trade Deals, IMF Programs)
Pakistan Affairs
· General Knowledge
50 MCQs
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1–20
of 50 MCQs
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1
What is the total value of the Extended Fund Facility (EFF) approved by the IMF for Pakistan in September 2024?
Answer:
$7 Billion
In September 2024, the IMF Executive Board approved a 37-month Extended Fund Facility (EFF) arrangement for Pakistan worth approximately $7 billion (SDR 5,320 million).
2
As of November 2025, what is the policy rate set by the State Bank of Pakistan (SBP)?
Answer:
11%
Following a period of economic stabilization and declining inflation, the State Bank of Pakistan's Monetary Policy Committee maintained the policy rate at 11% in its meeting held in late 2025.
3
Which major state-owned entity is set to have 75% of its shares privatized as of November 2025?
Answer:
Pakistan International Airlines (PIA)
The government has finalized the plan to privatize 75% of Pakistan International Airlines (PIA), with the bidding process involving pre-qualified consortiums initiated in late 2025.
4
The second phase of the China-Pakistan Economic Corridor (CPEC) primarily focuses on which new corridors?
Answer:
Growth, Livelihood, Innovation, Green, and Regional Connectivity
CPEC Phase-II has expanded to include five new corridors: Growth, Livelihood-Enhancing, Innovation, Green, and Opening-Up/Regional Connectivity, emphasizing industrial cooperation and agriculture.
5
In the Federal Budget 2024-25, the government increased the tax rate on capital gains from securities for non-filers to a maximum of:
Answer:
45%
The 2024-25 budget significantly tightened the tax net for non-filers, setting the capital gains tax (CGT) on securities for non-filers at normal rates with a maximum slab of 45%.
6
Which international financial institution reached a staff-level agreement with Pakistan for the Second Review of the EFF in October 2025?
Answer:
International Monetary Fund (IMF)
The IMF reached a staff-level agreement with Pakistan in October 2025 regarding the Second Review of the 37-month Extended Fund Facility (EFF).
7
The proposed Free Trade Agreement (FTA) between Pakistan and the Gulf Cooperation Council (GCC) covers which key sectors?
Answer:
Goods and Services, including IT and Telecommunications
The draft Pakistan-GCC FTA includes comprehensive coverage of trade in goods and services, specifically mentioning sectors like IT, telecommunications, financial services, and construction.
8
What was the projected Real GDP growth rate for Pakistan for the year 2025 as per major economic outlooks?
Answer:
2.7%
Economic projections by institutions like the IMF and ADB forecasted Pakistan's Real GDP growth to be approximately 2.7% for the fiscal year 2025.
9
The Federal Board of Revenue (FBR) set a tax collection target of approximately what amount for the fiscal year 2024-25?
Answer:
Rs 12.97 Trillion
The government set an ambitious tax revenue target of Rs 12.97 trillion for FY 2024-25, aiming for a roughly 40% increase over the previous year's collection.
10
Which tax was imposed on milk sold by corporate farms or brands in the 2024-25 Budget?
Answer:
18% General Sales Tax (GST)
The 2024-25 budget removed the zero-rating status for packaged milk sold by corporate farms and brands, subjecting it to an 18% General Sales Tax.
11
The 'Tajir Dost Scheme' launched in 2024 aims to bring which group into the tax net?
Answer:
Retailers and Wholesalers
The Tajir Dost Scheme is a specific initiative by the FBR aimed at registering retailers and wholesalers to broaden the tax base and formalize the retail sector.
12
In the 2024-25 budget, the tax rate on dividend income for mutual funds earning more than 50% from debt was increased to:
Answer:
25%
To discourage arbitrage, the tax rate on dividends from mutual funds that derive 50% or more of their income from profit-on-debt was raised from 15% to 25%.
13
Which sector was identified for 'Right-Sizing' and privatization to reduce fiscal losses in 2024-25?
Answer:
Power Distribution Companies (DISCOs)
The government initiated a policy to 'provincialize' or privatize Power Distribution Companies (DISCOs) to curb massive circular debt and operational losses.
14
The Petroleum Development Levy (PDL) target for FY 2024-25 was set at:
Answer:
Rs 1.3 Trillion
The government targeted Rs 1.3 trillion in collection from the Petroleum Development Levy (PDL), utilizing the increased levy rates on petrol and diesel.
15
What is the duration of the current IMF Extended Fund Facility (EFF) program for Pakistan?
Answer:
37 Months
The EFF program approved in September 2024 has a duration of 37 months, intended to provide medium-term stability and structural reforms.
16
Under the new IMF program conditions, provincial governments are required to legislate to tax which type of income?
Answer:
Agricultural Income
A key structural benchmark of the new IMF program is for provinces to legislate and enforce a tax on agricultural income, aligning its rates with the federal personal income tax regime.
17
The projected inflation rate (average consumer prices) for Pakistan in 2025 is approximately:
Answer:
4.5%
Following strict monetary tightening, inflation was projected to decline significantly, averaging around 4.5% for the year 2025 according to major economic outlooks.
18
The 'Sovereign Wealth Fund' Act was amended in 2024 to primarily:
Answer:
Remove tax exemptions and special privileges
To meet IMF governance conditions, the Sovereign Wealth Fund Act was amended to remove tax exemptions and privileges, ensuring state-owned enterprises in the fund compete on a level playing field.
19
Which country signed a transit trade agreement protocol with Pakistan to operationalize barter trade in 2023-24?
Answer:
Iran
Pakistan and Iran operationalized a barter trade mechanism to facilitate commerce despite banking sanctions, engaging chambers of commerce from Quetta and Zahedan.
20
The 'Green Pakistan Initiative' under the SIFC focuses on corporate farming to boost:
Answer:
Food security and agricultural exports
The Green Pakistan Initiative aims to modernize the agriculture sector through corporate farming, attracting foreign investment to ensure food security and increase exports.
