Global Economic Trends and Their Impact on Pakistan MCQs

1. Which global economic crisis had a severe impact on Pakistan’s economy in 2008?
(A) The Asian Financial Crisis
(B) The Global Financial Crisis
(C) The Eurozone Debt Crisis
(D) The COVID-19 Recession

2. Which global event in 2020 significantly disrupted Pakistan’s economy due to supply chain issues?
(A) Brexit
(B) COVID-19 Pandemic
(C) U.S.-China Trade War
(D) Russia-Ukraine War

3. What is the primary reason behind Pakistan’s trade deficit in the global market?
(A) Low exports and high imports
(B) Overproduction of local goods
(C) Depreciation of the US dollar
(D) Lack of foreign direct investment (FDI)

4. How does the rise in global oil prices impact Pakistan’s economy?
(A) Increases energy costs and inflation
(B) Reduces trade deficit
(C) Strengthens the Pakistani rupee
(D) Boosts local petroleum exports

5. What is the role of the International Monetary Fund (IMF) in Pakistan’s economy?
(A) Provides direct foreign investments
(B) Offers financial assistance and policy guidance
(C) Controls Pakistan’s trade policies
(D) Regulates the stock exchange

6. How does the depreciation of the Pakistani rupee against the US dollar affect the economy?
(A) Increases import costs
(B) Strengthens foreign reserves
(C) Decreases inflation
(D) Reduces trade deficit

7. What global economic factor directly affects Pakistan’s textile industry?
(A) International cotton prices
(B) Gold price fluctuations
(C) Tech industry performance
(D) Oil production rates

8. Which country is Pakistan’s largest trading partner in terms of imports?
(A) China
(B) United States
(C) Saudi Arabia
(D) United Kingdom

9. What is the impact of global interest rate hikes on Pakistan’s economy?
(A) Increases borrowing costs
(B) Reduces inflation
(C) Strengthens the rupee
(D) Boosts foreign reserves

10. How does a rise in global inflation affect Pakistan’s economy?
(A) Increases cost of imported goods
(B) Reduces poverty
(C) Improves purchasing power
(D) Strengthens the stock market

11. Which international organization provides loans and economic assistance to developing countries, including Pakistan?
(A) NATO
(B) World Bank
(C) SAARC
(D) OIC

12. What impact does the China-Pakistan Economic Corridor (CPEC) have on Pakistan’s economy?
(A) Increases infrastructure development
(B) Reduces trade with China
(C) Causes devaluation of the rupee
(D) Lowers foreign investments

13. Which global economic factor contributes to Pakistan’s high inflation rates?
(A) High fuel prices
(B) Rising unemployment
(C) Increase in local agricultural production
(D) Strengthening of the rupee

14. Which sector in Pakistan is most affected by global energy price fluctuations?
(A) Agriculture
(B) Manufacturing
(C) Education
(D) IT Industry

15. How does an increase in global food prices affect Pakistan’s economy?
(A) Increases food inflation
(B) Reduces government spending
(C) Strengthens the currency
(D) Boosts agricultural exports

16. Which economic issue is Pakistan facing due to global climate change?
(A) Lower agricultural productivity
(B) Increased industrial growth
(C) Reduced inflation rates
(D) Strengthened foreign exchange reserves

17. What is the major challenge for Pakistan in attracting foreign direct investment (FDI)?
(A) Political instability
(B) Strong currency
(C) Low inflation
(D) Excessive trade surplus

18. Which sector in Pakistan benefits the most from global remittances?
(A) Real estate and construction
(B) Information Technology
(C) Fisheries
(D) Automotive Industry

19. How does the U.S.-China trade war impact Pakistan’s economy?
(A) Creates opportunities for increased exports
(B) Strengthens the rupee
(C) Reduces foreign remittances
(D) Lowers inflation

20. What is one major way Pakistan can mitigate the impact of global economic downturns?
(A) Diversifying exports
(B) Increasing reliance on imports
(C) Reducing domestic production
(D) Limiting foreign investments