Free Economy and Budget MCQs with Answers

11. What is the purpose of the International Monetary Fund (IMF) mission's visit to Pakistan in February 2025?

• A. To negotiate a new loan agreement
• B. To conduct a Governance and Corruption Diagnostic Assessment
• C. To evaluate Pakistan's economic growth
• D. To oversee infrastructure projects

Explanation: The IMF mission came to conduct a Governance and Corruption Diagnostic Assessment, examining institutional weaknesses and corruption risks. This was distinct from negotiating a new loan or supervising infrastructure projects.

12. What significant financial challenge does Pakistan face in the fiscal year 2025, according to Fitch Ratings?

• A. A decline in foreign direct investment
• B. Over $22 billion in external debt repayments
• C. A decrease in remittances
• D. A budget deficit exceeding $10 billion

Explanation: Fitch identified more than $22 billion in external debt repayments as a major pressure on Pakistan in fiscal year 2025. This is a repayment obligation, not a forecast of declining investment or remittances.

13. When did Pakistan and Saudi Funds Development (SFD) sign a $1.61 billion agreement to boost economic cooperation?

• A. 2nd February 2025
• B. 3rd February 2025
• C. 4th February 2025
• D. 5th February 2025Pakistan Current Affairs

Explanation: Pakistan and the Saudi Fund for Development signed the $1.61 billion economic cooperation agreement on February 3, 2025. The date is one day after February 2 and before the consultations reported on February 5.

14. What were Pakistan's total liquid foreign currency reserves as of January 2025?

• A. 15 billion
• B. 16 billion
• C. 17 billion
• D. 18 billion

Explanation: Pakistan’s total liquid foreign exchange reserves were reported at about $16 billion in January 2025. This figure includes the reserves held by the State Bank and commercial banks.

15. Which Pakistani official welcomed the World Bank's funding plan, stating it reflects confidence in Pakistan's economic resilience?

• A. President Arif Alvi
• B. Foreign Minister Bilawal Bhutto Zardari
• C. Prime Minister Shehbaz Sharif
• D. Finance Minister Ishaq Dar

Explanation: Prime Minister Shehbaz Sharif welcomed the World Bank plan and viewed it as evidence of international confidence in Pakistan’s economic resilience. The other named politicians did not make this reported statement.

16. Which international financial institution provided a $7 billion loan to Pakistan prior to the World Bank's funding?

• A. Asian Development Bank
• B. International Monetary Fund
• C. European Central Bank
• D. Islamic Development Bank

Explanation: The $7 billion financing arrangement came from the International Monetary Fund under Pakistan’s Extended Fund Facility. The World Bank’s later package was a separate development-financing commitment.

17. Over what period will the World Bank's $20 billion funding be disbursed to Pakistan?

• A. 5 years
• B. 10 years
• C. 15 years
• D. 20 years

Explanation: The World Bank’s $20 billion framework was designed as a 10-year programme, divided into successive phases rather than disbursed in a single lending cycle.

18. How much are the MoUs signed between Pakistani and Chinese companies worth in the medical equipment trade on 17th January 2025?

• A. $100 million
• B. $150 million
• C. $200 million
• D. $250 million

Explanation: The agreements signed on 17 January 2025 covered medical equipment trade worth $250 million. This figure reflects the combined value of the memorandums between Pakistani and Chinese companies.

19. In January 2025, what type of taxis did the Sindh government introduce for unemployed youth?

• A. Gas-powered taxis
• B. Electric Vehicles (EV) taxis
• C. Hybrid taxis
• D. Solar-powered taxis

Explanation: The Sindh government introduced electric-vehicle taxis as an employment initiative for unemployed young people. EV taxis were the announced category, not gas, hybrid, or solar-powered vehicles.

20. What is the name of Pakistan's National Economic Transformation Plan 2024-29?

• A. Pakistan Vision 2025
• B. Uraan Pakistan: Homegrown National Economic Plan
• C. Pakistan Economic Development Plan
• D. Sustainable Growth Plan

Explanation: Pakistan’s National Economic Transformation Plan for 2024–29 is called Uraan Pakistan: Homegrown National Economic Plan. Vision 2025 is an earlier long-term framework and is not the name of this five-year transformation plan.