Current Affairs

Pakistan’s Economic Challenges MCQs with Answer

Pakistan faces a significant challenge in which sector due to increasing imports and a declining national currency?
a) Agriculture
b) Energy
c) Manufacturing
d) Services

Answer
Energy

Which of the following is considered one of Pakistan’s biggest economic challenges in recent years?
a) Rising unemployment rates
b) Rapid industrial growth
c) Low literacy rates
d) Increase in foreign direct investment

Answer
Rising unemployment rates

The large informal sector in Pakistan contributes to which of the following economic issues?
a) High tax revenues
b) Weak labor rights
c) Difficulty in measuring GDP accurately
d) Lower inflation rates

Answer
Difficulty in measuring GDP accurately

What is a major challenge to Pakistan’s agriculture sector?
a) Shortage of arable land
b) Insufficient irrigation systems
c) Lack of investment in technology
d) High-quality seed production

Answer
Insufficient irrigation systems

Which of the following is a contributing factor to Pakistan’s increasing public debt?
a) High military expenditures
b) Increase in education spending
c) Growth in exports
d) Decrease in foreign aid

Answer
High military expenditures

Pakistan’s energy crisis is largely due to which of the following?
a) Limited natural resources
b) Over-reliance on renewable energy
c) Insufficient energy imports
d) Poor energy distribution infrastructure

Answer
Poor energy distribution infrastructure

Which of the following is a key factor contributing to inflation in Pakistan?
a) Devaluation of the Pakistani Rupee
b) Increase in agricultural exports
c) Increase in foreign remittances
d) Declining oil prices

Answer
Devaluation of the Pakistani Rupee

What is one of the most critical barriers to Pakistan’s industrial growth?
a) High wages
b) Outdated technology
c) Excessive competition
d) Strong trade policies

Answer
Outdated technology

Which international financial institution has provided significant loans to Pakistan over the years?
a) World Bank
b) IMF
c) European Central Bank
d) Asian Development Bank

Answer
IMF

What is one of the key reasons behind Pakistan’s low foreign direct investment (FDI)?
a) High taxation rates
b) Political instability
c) Strong rule of law
d) High-skilled workforce

Answer
Political instability

The circular debt issue in Pakistan is primarily related to which sector?
a) Healthcare
b) Education
c) Energy
d) Agriculture

Answer
Energy

Which of the following is considered a major economic challenge for Pakistan’s healthcare sector?
a) Overpopulation
b) Rising healthcare costs
c) Lack of medical professionals
d) Inadequate infrastructure

Answer
Inadequate infrastructure

Pakistan’s reliance on which of the following is a significant economic challenge for long-term growth?
a) Oil imports
b) Solar energy
c) International tourism
d) Export diversification

Answer
Oil imports

Which of the following is a contributing factor to Pakistan’s rising poverty levels?
a) Increasing foreign investments
b) High inflation and unemployment
c) Declining agricultural productivity
d) Growth in the IT sector

Answer
High inflation and unemployment

What is one of the challenges associated with Pakistan’s urbanization?
a) Overpopulation in rural areas
b) High unemployment in cities
c) Lack of migration policies
d) Low agricultural productivity

Answer
High unemployment in cities

Which of the following economic challenges does Pakistan face with regards to its workforce?
a) Excessive youth employment
b) Lack of skilled labor
c) Large number of women in the workforce
d) High wage rates in rural areas

Answer
Lack of skilled labor

How has the COVID-19 pandemic affected Pakistan’s economy?
a) Increased exports significantly
b) Led to a reduction in foreign debt
c) Created challenges in the agriculture sector
d) Increased unemployment and poverty

Answer
Increased unemployment and poverty

The decline in Pakistan’s export sector can be attributed to which of the following?
a) Increased regional demand
b) Decrease in international competition
c) High cost of production
d) Increased trade agreements with China

Answer
High cost of production

What is one of the primary causes of Pakistan’s trade deficit?
a) Growth in exports
b) Rising import costs
c) Strong currency value
d) Excessive foreign investment

Answer
Rising import costs

Which of the following is a challenge faced by Pakistan’s tourism sector?
a) High international competitiveness
b) Lack of government funding
c) Poor infrastructure and security issues
d) Limited cultural heritage sites

Answer
Poor infrastructure and security issues

Which sector is one of the largest contributors to Pakistan’s national economy?
a) Manufacturing
b) Agriculture
c) Services
d) Construction

Answer
Agriculture

What is a major environmental challenge faced by Pakistan that affects its economic performance?
a) Overpopulation
b) Water scarcity
c) High carbon emissions
d) Land degradation

Answer
Water scarcity

Which of the following factors has significantly impacted Pakistan’s fiscal policy?
a) Increased military spending
b) Decline in international aid
c) A robust stock market
d) Successful industrial reforms

Answer
Increased military spending

Which Pakistani initiative seeks to address the financial inclusion of unbanked populations?
a) Ehsaas Program
b) Kamyab Jawan Program
c) Financial Inclusion Strategy
d) National Social Protection Program

Answer
Financial Inclusion Strategy

Pakistan’s growing energy crisis is exacerbated by its reliance on which form of energy?
a) Hydropower
b) Solar energy
c) Wind energy
d) Fossil fuels

Answer
Fossil fuels

What is the major challenge faced by Pakistan’s financial sector in terms of foreign relations?
a) Currency depreciation
b) Increase in stock market activities
c) Enhanced international borrowing capacity
d) Reduced international trade agreements

Answer
Currency depreciation

Which of the following sectors is most affected by Pakistan’s chronic electricity shortages?
a) Retail
b) Manufacturing
c) Agriculture
d) Technology

Answer
Manufacturing

What role does the informal economy play in Pakistan’s economic challenges?
a) Increases government revenue
b) Hinders tax collection efforts
c) Boosts foreign investment
d) Decreases inflation rates

Answer
Hinders tax collection efforts

Which international organization has expressed concerns over Pakistan’s growing economic deficit?
a) World Bank
b) Asian Development Bank
c) IMF
d) UNDP

Answer
IMF

Which of the following is a primary factor behind Pakistan’s low export competitiveness?
a) High domestic demand
b) Lack of innovation and technology
c) High labor productivity
d) Low transportation costs

Answer
Lack of innovation and technology

What is one of the impacts of Pakistan’s weak taxation system on its economy?
a) High public sector wages
b) Reduced government debt
c) Limited funding for development projects
d) Increased foreign investment

Answer
Limited funding for development projects

What is one of the primary obstacles to increasing foreign direct investment (FDI) in Pakistan?
a) Political stability
b) High inflation
c) Security concerns
d) Low labor costs

Answer
Security concerns

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