The government has increased the taxes on all businesses in Pakistan. II. Many small businesses will have to close their operations in Pakistan.

Statement II is the cause and statement I is its effect

Statement I is the cause and statement II is its effect

Both the statements I and II are effects of independent causes

Both the statements I and II are independent causes

Explanation

Statement I, which indicates that taxes on all businesses have increased, is likely to lead to Statement II, where many small businesses will have to close their operations due to the higher tax burden.