What are remittances?
a) Foreign investments in Pakistan
b) Money sent by overseas Pakistanis to their families back home
c) Government grants for infrastructure projects
d) Loans provided by international banks
How do remittances impact Pakistan’s foreign exchange reserves?
a) They increase foreign exchange reserves
b) They reduce the need for exports
c) They have no effect on reserves
d) They decrease foreign exchange reserves
Which sector benefits the most from remittances in Pakistan?
a) Agriculture
b) Real estate and construction
c) Heavy industries
d) Aviation
How do remittances contribute to Pakistan’s economic stability?
a) By increasing reliance on imports
b) By reducing external debt pressure
c) By lowering employment opportunities
d) By increasing trade deficits
Which country is the largest source of remittances for Pakistan?
a) China
b) United States
c) Saudi Arabia
d) Malaysia
What effect do remittances have on Pakistan’s exchange rate?
a) They help stabilize the Pakistani Rupee
b) They cause rapid depreciation of the Rupee
c) They lead to increased inflation
d) They have no impact on exchange rates
How do remittances influence household income in Pakistan?
a) They improve living standards and reduce poverty
b) They increase government taxes
c) They decrease overall employment
d) They have no impact on household income
Which of the following is a risk associated with reliance on remittances?
a) Increased industrial growth
b) Economic dependency on foreign income
c) Decrease in real estate prices
d) Rapid growth of the agricultural sector
What happens when remittance inflows decline?
a) The economy remains unaffected
b) Pakistan’s foreign reserves decrease
c) The government reduces its budget deficit
d) The Pakistani Rupee strengthens
Which institution monitors remittance flows into Pakistan?
a) Pakistan Telecommunication Authority (PTA)
b) State Bank of Pakistan (SBP)
c) Pakistan Railways
d) National Highway Authority (NHA)
How do remittances help in poverty reduction in Pakistan?
a) By increasing consumer spending and improving access to education and healthcare
b) By reducing the number of overseas workers
c) By decreasing household savings
d) By increasing inflation
What is the impact of remittances on Pakistan’s banking sector?
a) Increases foreign currency deposits and liquidity
b) Reduces financial inclusion
c) Increases reliance on informal money transfers
d) Lowers loan availability
Which of the following challenges affects remittance inflows to Pakistan?
a) Increased interest rates on loans
b) Strict international banking regulations
c) Higher agricultural production
d) Rising local employment
How do remittances affect Pakistan’s investment sector?
a) They reduce foreign direct investment
b) They increase investments in real estate and small businesses
c) They discourage economic growth
d) They lead to higher trade deficits
What percentage of Pakistan’s GDP is contributed by remittances?
a) Less than 1%
b) Around 10%
c) 50%
d) More than 80%
How does the informal Hawala system impact remittance inflows?
a) It increases transparency in transactions
b) It diverts remittances from formal banking channels
c) It ensures stronger financial regulations
d) It strengthens the banking sector
Which of the following policies can help maximize the benefits of remittances in Pakistan?
a) Encouraging the use of official banking channels for transfers
b) Increasing import taxes
c) Reducing financial sector reforms
d) Limiting overseas employment opportunities
What impact do remittances have on Pakistan’s inflation rate?
a) They have no effect on inflation
b) They may contribute to rising inflation if demand for goods and services increases
c) They always reduce inflation
d) They prevent price hikes in consumer markets
How can the government encourage more formal remittance transfers?
a) Offering tax incentives for remittances sent through legal channels
b) Banning international money transfers
c) Increasing restrictions on banking transactions
d) Encouraging the use of Hawala networks
What is one downside of excessive remittance dependency?
a) It strengthens Pakistan’s manufacturing sector
b) It reduces the need for domestic economic reforms
c) It leads to higher productivity
d) It improves trade balances
