Economic Challenges Facing Pakistan 50 Score: 0 Attempted: 0/50 Subscribe 1. : What is one of the main causes of Pakistan’s persistent fiscal deficit? (A) High export earnings (B) Low government expenditures (C) High public debt and subsidies (D) Excess foreign investment 2. : Which sector contributes the largest share to Pakistan’s GDP? (A) Agriculture (B) Industry (C) Services (D) Mining 3. : What is a major challenge to Pakistan’s export growth? (A) Lack of trade agreements (B) Poor infrastructure and energy shortages (C) Excessive foreign investment (D) High literacy rate 4. : Which of the following is a key reason for Pakistan’s balance of payments crisis? (A) High remittances (B) Large trade deficit (C) High savings rate (D) Surplus in current account 5. : Inflation in Pakistan is mainly caused by: (A) Decrease in money supply (B) Supply-side constraints and currency depreciation (C) High productivity (D) Excess savings 6. : Which organization often provides financial assistance to Pakistan during economic crises? (A) NATO (B) World Bank (C) IMF (D) ASEAN 7. : What is a major challenge in Pakistan’s tax system? (A) High tax rates for everyone (B) Low tax collection and narrow tax base (C) Excessive tax refunds (D) No tax laws 8. : What impact does energy shortage have on Pakistan’s economy? (A) Increase industrial productivity (B) Decrease industrial output and economic growth (C) Boost exports (D) Reduce inflation 9. : What is a significant hurdle in improving Pakistan’s education sector? (A) Excessive funding (B) Poor infrastructure and access, especially in rural areas (C) Too many universities (D) Overqualified teachers 10. : Which sector employs the largest portion of Pakistan’s workforce? (A) Agriculture (B) Manufacturing (C) Services (D) Construction 11. : What is the major source of Pakistan’s external debt? (A) Domestic loans (B) Foreign aid and commercial loans (C) Income tax (D) Foreign direct investment 12. : Which factor contributes most to unemployment in Pakistan? (A) Rapid population growth and lack of job creation (B) High investment in industries (C) Excess government jobs (D) Low population growth 13. : What effect does the large informal economy have on Pakistan? (A) Increases tax revenue (B) Reduces tax revenue and regulatory oversight (C) Improves governance (D) Encourages foreign investment 14. : Pakistan’s foreign exchange reserves are mainly used to: (A) Import goods and service external debt payments (B) Increase exports (C) Pay domestic salaries (D) Fund education sector 15. : What is a key challenge in Pakistan’s industrial sector? (A) Excess electricity supply (B) Outdated technology and energy shortages (C) Surplus skilled labor (D) High exports 16. : What role does remittance play in Pakistan’s economy? (A) Major source of foreign exchange and support for household income (B) Causes inflation (C) Decreases savings (D) Increases unemployment 17. : Which of the following affects Pakistan’s investment climate negatively? (A) Political instability and security concerns (B) Strong law enforcement (C) Low inflation (D) Good infrastructure 18. : What is the primary reason for Pakistan’s poor infrastructure development? (A) Excess funds allocated (B) Lack of investment and maintenance (C) High foreign aid (D) Advanced technology 19. : Pakistan’s poverty rate is influenced by: (A) High employment rate (B) Unequal income distribution and lack of social safety nets (C) Low population growth (D) High literacy rate 20. : What is a major factor limiting Pakistan’s agricultural productivity? (A) Abundant modern equipment (B) Small landholdings and outdated farming techniques (C) Excess water supply (D) High literacy in rural areas 21. : What is the status of Pakistan’s fiscal policy? (A) Generally balanced budget (B) Persistent fiscal deficits due to high spending and low revenue (C) Large fiscal surplus (D) No taxation 22. : What effect does corruption have on Pakistan’s economy? (A) Encourages foreign investment (B) Undermines governance and economic efficiency (C) Reduces poverty (D) Increases exports 23. : What is a major challenge for Pakistan’s export diversification? (A) Overdependence on textile exports (B) Variety of export products (C) High technology exports (D) Strong trade policies 24. : Which of the following has negatively impacted Pakistan’s trade balance? (A) High exports (B) Increasing imports and low exports (C) Foreign remittances (D) Low energy consumption 25. : What is a consequence of Pakistan’s energy crisis? (A) Increase in industrial production (B) Frequent power outages affecting businesses (C) Increase in exports (D) Reduction in poverty 26. : Which institution is responsible for monetary policy in Pakistan? (A) Ministry of Finance (B) State Bank of Pakistan (C) IMF (D) World Bank 27. : Pakistan’s debt-to-GDP ratio impacts its economy by: (A) Limiting fiscal space for development projects (B) Increasing exports (C) Reducing inflation (D) Improving foreign investment 28. : What is the role of Small and Medium Enterprises (SMEs) in Pakistan’s economy? (A) Minor contributor to employment (B) Major source of employment and economic growth (C) Only export-oriented (D) Government-owned 29. : Which is a major problem in Pakistan’s education sector affecting economic growth? (A) High enrollment rate (B) Low literacy and poor quality of education (C) Excess private schools (D) Too many universities 30. : What impact does population growth have on Pakistan’s economy? (A) Reduces unemployment (B) Puts pressure on resources and job market (C) Decreases inflation (D) Increases per capita income 31. : Pakistan’s export earnings heavily rely on: (A) High-tech goods (B) Textile and apparel industry (C) Oil exports (D) Agricultural machinery 32. : What is a major challenge in Pakistan’s health sector? (A) Excess doctors (B) Inadequate funding and infrastructure (C) Low population growth (D) High export of medical services 33. : What effect does inflation have on Pakistan’s economy? (A) Increases purchasing power (B) Reduces purchasing power and increases poverty (C) Stabilizes prices (D) Boosts savings 34. : What is a major obstacle to foreign direct investment (FDI) in Pakistan? (A) Political stability (B) Security concerns and regulatory barriers (C) Low labor cost (D) Good infrastructure 35. : Pakistan’s agricultural sector is vulnerable to: (A) Technological advancements (B) Climate change and water shortages (C) Export diversification (D) Urbanization 36. : Which sector has shown consistent growth despite economic challenges? (A) Textile manufacturing (B) Services sector (C) Mining (D) Agriculture 37. : What is one of the economic impacts of Pakistan’s large informal sector? (A) High tax revenues (B) Loss of government revenue and regulation difficulties (C) Increased foreign investment (D) Growth in exports 38. : Which of the following is a strategy to improve Pakistan’s economic situation? (A) Increase energy subsidies (B) Structural reforms and improving tax collection (C) Reduce exports (D) Increase tariffs on imports 39. : What is a major challenge in Pakistan’s industrial exports? (A) Strong global demand (B) Lack of diversification and competition (C) Excess government subsidies (D) Too many foreign investors 40. : Which policy area is crucial for sustainable economic growth in Pakistan? (A) Military spending (B) Education and skill development (C) Increasing oil imports (D) Restricting foreign trade 41. : What role do remittances play in Pakistan’s economy? (A) Major source of foreign exchange and poverty alleviation (B) Cause inflation (C) Increase unemployment (D) Reduce exports 42. : Which is a major cause of food insecurity in Pakistan? (A) High agricultural productivity (B) Poverty and low agricultural output (C) Excess food exports (D) High employment in agriculture 43. : Pakistan’s GDP growth rate is affected by: (A) Stable political environment (B) Energy shortages and security issues (C) High foreign direct investment (D) Low inflation 44. : What is a key reason for Pakistan’s low savings rate? (A) High income levels (B) Low income and high consumption expenditure (C) Excessive foreign investment (D) High inflation control 45. : Which international organization supports Pakistan’s economic reforms? (A) ASEAN (B) IMF (C) NATO (D) OPEC 46. : What is a challenge faced by Pakistan in global trade? (A) High-tech exports (B) Tariff and non-tariff barriers (C) Excess foreign investment (D) Surplus foreign exchange reserves 47. : Pakistan’s debt servicing burden affects the economy by: (A) Increasing funds for development (B) Diverting resources away from social sectors (C) Decreasing inflation (D) Boosting exports 48. : What is the impact of a high population growth rate on Pakistan’s economy? (A) Increase in per capita income (B) Strain on infrastructure and resources (C) Decrease in unemployment (D) Increase in foreign investment 49. : Which factor limits Pakistan’s export competitiveness? (A) Low labor costs (B) Poor quality standards and infrastructure (C) High literacy rates (D) Strong currency 50. : What is a critical area for policy focus to overcome Pakistan’s economic challenges? (A) Defense spending (B) Improving governance and anti-corruption measures (C) Increasing tariffs (D) Reducing education budget