Pakistan Economy | MCQs

Explanation

Pakistan faced sanctions under the Pressler Amendment in 1990.

These sanctions were imposed by the United States

The Pressler Amendment, officially part of the U.S. Foreign Assistance Act of 1961,

This amendment was triggered in 1990 when President George H.W. Bush couldn't make that certification. 

Explanation

In fiscal year 2024 (FY24), Pakistan received approximately USD 1.9 billion in foreign direct investment (FDI), marking a 17% year-on-year increase from FY23.

China was the largest investor, contributing around USD 568 million—about 30% of the total FDI—followed by Hong Kong (USD 359 m) and the UK (USD 268 m).

Explanation

Pakistan is the fifth-largest producer of cotton globally, following China, India, Brazil, and the United States. 

In the 2024/2025 period, Pakistan's cotton production is projected at 5 million 480-pound bales, accounting for approximately 4% of global production. 

Explanation

The main sectors that benefitted from the GSP+ have been textile and garments.

This besides earning foreign exchange for the country.

It provided employment opportunities, especially to women.

The European Union (EU) has granted Pakistan the status of GSP (Generalized System of Preferences) Plus.

It allows Pakistan to export certain products to the EU market at preferential tariff rates.

This status is granted to developing countries that meet certain criteria.

It aims to promote economic development and reduce poverty.

Explanation

Zulfikar Ali Bhutto (PPP) announced the nationalization of major industries on January 2, 1972.

These industries included iron and steel, heavy engineering, heavy electricals, petrochemicals, cement, and public utilities.

Explanation

Zulfikar Ali Bhutto (PPP) announced the nationalization of major industries on January 2, 1972.

These industries included iron and steel, heavy engineering, heavy electricals, petrochemicals, cement, and public utilities.

Explanation

Pakistan's budget deficit for the fiscal year 2021-2022 was 7.9% of the budgetary target, or Rs 5.259 trillion.

The total revenue for the fiscal year was Rs 8035.383 billion, and the total expenditure was Rs 13,295.275 billion.

Explanation

Quaid-e-Azam Muhammad Ali Jinnah inaugurated  State Bank of Pakistan on 1st July 1948, aspired to build the economic and financial system of the country in line with injunctions of Islam.

Zahid Hussain the First Governor of the State Bank of Pakistan

Explanation

Pakistan imports crude and refined cooking oils (palm and palm olein) mainly from Malaysia and Indonesia and brings in soybean oil from North America and Brazil.

Explanation

In 2023, Pakistan faced a severe balance-of-payments crisis due to rising imports and low reserves.

This caused currency devaluation, inflation, and debt repayment issues—crippling the economy.