Explanation

Money circulation in Pakistan is controlled by the State Bank of Pakistan (SBP)

The State Bank of Pakistan (SBP) is the central bank of the country.

It controls money supply, inflation, and circulation in the economy.

Explanation

• Agriculture contributes a major share to GDP (around one-fifth).
  • Provides raw material to textile and sugar industries.
  • Employs a large portion of the rural population.
  • Major crops: Wheat, Cotton, Rice, Sugarcane, Maize.
  • Irrigation mainly comes from the Indus River system.

Last verified on 05-02-2026

Explanation

• Main Cause: Circular debt & mismanagement
• Other Factors: Inefficient power plants, transmission losses, delayed payments
• Impact: Frequent load shedding, industrial slowdown
• Energy Gap: Pakistan’s demand often exceeds supply by 4,000–5,000 MW
• Affected Areas: Nationwide, including rural and urban regions

Last verified on 02-02-2026

Explanation

The SECP is the regulatory authority of the Pakistan stock market

SECP  stands for Securities and Exchange Commission of Pakistan

Functions: It supervises securities markets, non-banking financial companies (NBFCs), insurance companies, and private pension funds.

Objective: To protect investors and foster economic growth. 

Explanation

Pakistan was granted GSP+ status by the European Union (EU) on January 1, 2014

After the country had ratified 27 international conventions

GSP+ (Generalised Scheme of Preferences Plus) 

 It was approved in late 2013

Explanation

Pakistan's tax-to-GDP ratio for the fiscal year 2024-25 (ending June 2025) has increased to approximately 10.3%–10.6%

Target: 11% for the current fiscal year.

Goal: 18% by 2027-28.

Explanation

On December 19-20, 2025, the World Bank approved $700 million 

In financing to support Pakistan’s macroeconomic stability

Objective: To improve domestic revenue mobilization, strengthen fiscal systems, and enhance service delivery.

Explanation

• Textiles are Pakistan’s largest export commodity.
• The textile sector plays a key role in Pakistan’s economy and foreign exchange earnings.

Additional information:
Major textile export items:

• Cotton yarn
• Readymade garments
• Bed wear
• Towels
• Knitwear

Last verified on 19-01-2026

Explanation

• The services sector is the largest contributor to Pakistan’s GDP.
• It accounting for around 58% of the total GDP.
• Agriculture contributes about 23%.
• Industry/manufacturing contributes around 20%.
  

Additional information:

• Services include finance, transport, education, health, and IT.
• Growth in services reflects urbanization and modernization of the economy.

Last verified on 19-01-2026

Explanation

• GSP Plus (Generalised Scheme of Preferences Plus) gives Pakistan duty-free access to the European Union market.
• Pakistan received GSP Plus status in 2014.
• The textile and garments sector gained the maximum export benefit.

Additional information:

• Over 70% of Pakistan’s exports to the EU are from the textile sector.
• GSP Plus requires compliance with 27 international conventions on human rights, labor laws, environment, and governance.

Last Updated on 13-01-2026