Pakistan Economic challenges and achievements MCQsBy: Prof. Dr. Fazal Rehman | Last updated: May 31, 2025 30 Score: 0 Attempted: 0/30 Subscribe 1. : Which of the following is NOT a major economic challenge faced by Pakistan? (A) Inflation (B) Unemployment (C) High literacy rate (D) Poverty 2. : What is the primary cause of inflation in Pakistan? (A) Increased government spending (B) Decline in foreign investment (C) Decrease in money supply (D) Stable global oil prices 3. : What is the current poverty rate in Pakistan? (A) 10% (B) 20% (C) 30% (D) 40% 4. : Which sector of the economy has shown significant growth in recent years? (A) Agriculture (B) Manufacturing (C) Services (D) Mining 5. : What is the main source of Pakistan’s foreign exchange earnings? (A) Remittances (B) Export of textiles (C) Foreign aid (D) Tourism 6. : Which of the following is NOT a factor contributing to unemployment in Pakistan? (A) Rapid population growth (B) Lack of skilled labor (C) Insufficient industrialization (D) Low inflation 7. : What is the primary focus of Pakistan’s economic development policies? (A) Poverty alleviation (B) Industrialization (C) Infrastructure development (D) Export promotion 8. : Which economic achievement is attributed to Pakistan in recent years? (A) Reduction in income inequality (B) Increase in foreign debt (C) Expansion of social welfare programs (D) Decrease in GDP growth rate 9. : What is the main challenge faced by Pakistan’s agricultural sector? (A) Low productivity (B) Lack of arable land (C) Excessive government intervention (D) Decline in global food prices 10. : Which economic indicator reflects the standard of living in Pakistan? (A) GDP per capita (B) Gross national income (C) Consumer price index (D) Poverty rate 11. : What role does the informal economy play in Pakistan’s economic challenges? (A) It contributes to economic growth (B) It exacerbates income inequality (C) It reduces unemployment (D) It increases government revenue 12. : Which sector of the economy has the highest share in Pakistan’s GDP? (A) Agriculture (B) Industry (C) Services (D) Mining 13. : What is the impact of political instability on Pakistan’s economy? (A) Increased investor confidence (B) Decreased foreign investment (C) Strengthened currency value (D) Enhanced economic growth 14. : What role does human capital development play in addressing Pakistan’s economic challenges? (A) It reduces poverty rates (B) It enhances productivity and innovation (C) It increases government revenue (D) It leads to trade liberalization 15. : Which economic policy aims to reduce income inequality in Pakistan? (A) Fiscal austerity (B) Market deregulation (C) Social welfare programs (D) Currency devaluation 16. : How does climate change impact Pakistan’s economy? (A) It improves agricultural productivity (B) It increases water scarcity (C) It reduces energy consumption (D) It boosts tourism revenue 17. : What role does infrastructure development play in Pakistan’s economic achievements? (A) It hinders economic growth (B) It attracts foreign investment (C) It increases unemployment rates (D) It decreases government spending 18. : Which economic sector faces challenges due to lack of modernization and technological advancement? (A) Agriculture (B) Manufacturing (C) Services (D) Construction 19. : What impact do trade deficits have on Pakistan’s economy? (A) They increase foreign exchange reserves (B) They decrease inflation rates (C) They lead to currency devaluation (D) They encourage import substitution 20. : How does the informal economy contribute to Pakistan’s economic challenges? (A) It promotes entrepreneurship (B) It generates tax revenue (C) It increases unemployment (D) It enhances government transparency 21. : What role does foreign direct investment (FDI) play in Pakistan’s economic development? (A) It reduces inflation rates (B) It increases government spending (C) It enhances productivity and competitiveness (D) It leads to trade deficits 22. : What is the main challenge faced by Pakistan’s industrial sector? (A) Lack of skilled labor (B) Excessive government regulations (C) Low demand for goods (D) Lack of access to finance 23. : What is the impact of population growth on Pakistan’s economic challenges? (A) It reduces poverty rates (B) It increases demand for goods and services (C) It decreases inflation rates (D) It leads to trade surpluses 24. : How does political instability affect foreign investment in Pakistan? (A) It increases investor confidence (B) It decreases capital flight (C) It leads to economic stagnation (D) It encourages technological innovation 25. : What is the main challenge faced by Pakistan’s energy sector? (A) Overcapacity (B) Insufficient supply (C) Low demand (D) High renewable energy usage 26. : What impact does corruption have on Pakistan’s economic achievements? (A) It promotes transparency (B) It boosts investor confidence (C) It hinders economic growth (D) It reduces income inequality 27. : How does Pakistan’s informal economy contribute to tax evasion? (A) It encourages formal business registration (B) It promotes government accountability (C) It increases tax revenue (D) It facilitates underreporting of income 28. : What role does foreign aid play in addressing Pakistan’s economic challenges? (A) It reduces government debt (B) It enhances infrastructure development (C) It increases income inequality (D) It leads to currency appreciation 29. : What impact do high-interest rates have on Pakistan’s economic challenges? (A) They decrease borrowing costs (B) They stimulate investment (C) They hinder business growth (D) They lead to currency devaluation 30. : How does trade liberalization contribute to Pakistan’s economic achievements? (A) It increases protectionism (B) It encourages export diversification (C) It leads to currency depreciation (D) It reduces foreign direct investment Related Posts:Economic challenges in Pakistan MCQsPakistan Economic zones and development projects MCQsPakistan Urban planning and challenges MCQsIssues and Challenges in Pakistan MCQsPakistan Education system challenges and reforms MCQsSocial issues and challenges in Pakistan MCQs