Explanation

In 2023, Pakistan faced a severe balance-of-payments crisis due to rising imports and low reserves.

This caused currency devaluation, inflation, and debt repayment issues—crippling the economy.

Explanation

Inflation Defined:

Inflation is the sustained increase in general price levels, reducing purchasing power.

Impact on Pakistan:

Rising Costs: Essential goods (food, fuel) become more expensive, straining households.

Economic Strain: Businesses face higher input costs, leading to slower growth and unemployment.

Currency Depreciation: High inflation often weakens the rupee, worsening imports.

Explanation

• National Assembly (Lower House)
• Senate (Upper House)

• Headed by the President of Pakistan
• Actual executive powers are exercised by the Prime Minister and the Cabinet

• Independent branch with authority vested in the Supreme Court
• Ensures the interpretation and enforcement of the Constitution

Explanation

In June 2023, the IMF approved a $3 billion loan to Pakistan under a 9-month Stand-By Arrangement (SBA).

This loan aimed to stabilize Pakistan's economy, support its financial reforms, and help manage external debt obligations.

Explanation

Explanation

The biggest market for Pakistan's exports is the United States, 

Top Export Items: Textiles (house linens, knitwear), rice, and leather products.

Additional information

Imports: China (largest)

Import Items: Petroleum products (gas, crude, refined), palm oil, and machinery. 

Explanation

The sugar industry is the second largest agro-based industry in Pakistan after textiles.

It plays a vital role in the rural economy by supporting millions of farmers and employing thousands in sugar mills.

Explanation

Fitch Ratings upgraded Pakistan's credit rating from 'CCC+' to 'B-' in April 2025, citing several key factors:

• Improved Fiscal Discipline: The government's efforts to narrow budget deficits and implement structural reforms under the IMF program contributed to the upgrade.

• Structural Reforms: Pakistan's commitment to implementing structural reforms, including agricultural tax legislation and fiscal consolidation measures, was recognized by Fitch.

• Economic Indicators: Positive economic indicators, such as a reduction in the government debt-to-GDP ratio and improved fiscal performance, supported the rating upgrade.

Explanation

The Fitch Indicator survey primarily provides insights into economic trends, particularly related to global markets, economies, and financial stability. 

Explanation

According to historical sources, when India was partitioned in 1947, approximately 33% of the British Indian Army's officer corps was allocated to Pakistan.