Explanation

• The State Bank of Pakistan (SBP) increases the policy rate mainly to control inflation.
• Higher interest rates reduce borrowing and spending in the economy.
• This helps in controlling long-term inflation pressure in Pakistan.

Last verified on 10-05-2026

Explanation

• When oil prices increase, production and transport costs rise, which leads to Cost-push inflation in the economy.

Last updated question NS on 09 MAY 2026

Explanation

• The primary reason for the global GDP reduction from 2020 to 2022 was the COVID-19 pandemic
• A drop in GDP growth to 0.3% in 2022-23
• World GDP fell by approximately 3.4% in 2020.

Last updated question NS on 09 MAY 2026

Explanation

• In Pakistan, the largest share of tax revenue comes from indirect taxes.
• The main contributor is Sales Tax, collected on goods and services.
• It is administered mainly by the Federal Board of Revenue (FBR).

Last verified on 01-05-2026

Explanation

• Special Economic Zones (SEZs) help diversify Pakistan’s export base.
• SEZs promote industrial growth and manufacturing.
• They attract local and foreign investment.
• This increases production of different export goods.
• As a result, Pakistan’s export basket becomes more diverse.

Last verified on 29-04-2026

Explanation

• Major organizations providing financial assistance to Pakistan are the IMF
• Pakistan officially became a member of the IMF on July 11, 1950.
• IMF stands for International Monetary Fund.

Last updated by NA on 23-April-2026

Explanation

• Pakistan’s Five-Year Plans are prepared to guide national economic development.
• The main institution responsible is the Planning Commission of Pakistan.
• It sets development goals for industries, agriculture, and infrastructure.
• First Five-Year Plan – 1955–1960

Last verified on 10-04-2026

Explanation

• When a country sells its surplus goods to other countries (foreign), it is called export.
• Cotton cloth is a common export product in many countries.

Additional information:

• Import – Buying goods from foreign countries into home country
• Domestic trade – Trade within the same country
• Pakistan’s major exports: textiles, rice, sports goods, leather

Last verified on 10-04-2026

Explanation

• Decimal Coinage in Pakistan: Introduced on 1 January 1961 to simplify currency calculations.
• Based on the Rupee, divided into 100 paisas.
• 1961: 1, 5, 10 paisa coins issued
• 1963: 25 and 50 paisa coins issued
• First coins ever: 1948

Last verified on 03-04-2026

Explanation

• In 2004, Pakistan launched the National Program for Improvement of Watercourses (NPIW).
• Project cost: Rs. 66 billion (initial estimate).

Additional information:

• The project covered approximately 86,000 watercourses across Pakistan.
• Seepage and conveyance losses account for 40–50% of water loss before reaching crops.
• Objective: Minimize water losses, improve irrigation efficiency, and support agriculture.

Last verified on 11-02-2026