Pakistan Economic Development MCQs

By: Prof. Dr. Fazal Rehman | Last updated: May 31, 2025

1. : Which sector contributes the most to Pakistan’s GDP?
(A) Agriculture
(B) Industry
(C) Services
(D) Mining

2. : What is the current unemployment rate in Pakistan?
(A) 5%
(B) 8%
(C) 10%
(D) 15%

3. : What is the main export of Pakistan?
(A) Textiles
(B) Petroleum
(C) Electronics
(D) Automobiles

4. : Which of the following is a major challenge to Pakistan’s economic development?
(A) High literacy rate
(B) Political stability
(C) Corruption
(D) Strong infrastructure

5. : What is the currency of Pakistan?
(A) Rupee
(B) Dollar
(C) Euro
(D) Pound

6. : What is the main source of foreign remittances in Pakistan?
(A) Tourism
(B) Export earnings
(C) Overseas Pakistanis
(D) Foreign aid

7. : Which organization provides financial assistance to Pakistan for development projects?
(A) World Bank
(B) International Monetary Fund (IMF)
(C) Asian Development Bank (ADB)
(D) All of the above

8. : What is the literacy rate in Pakistan?
(A) 50%
(B) 60%
(C) 70%
(D) 80%

9. : What is the main source of revenue for the Government of Pakistan?
(A) Income tax
(B) Sales tax
(C) Corporate tax
(D) Property tax

10. : Which of the following industries has experienced significant growth in Pakistan in recent years?
(A) Textiles
(B) Agriculture
(C) Mining
(D) Construction

11. : What is the inflation rate in Pakistan?
(A) 5%
(B) 8%
(C) 10%
(D) 12%

12. : Which economic sector employs the largest percentage of Pakistan’s workforce?
(A) Agriculture
(B) Industry
(C) Services
(D) Information Technology

13. : What is the main challenge faced by Pakistan’s agricultural sector?
(A) Lack of water resources
(B) Low productivity
(C) Limited arable land
(D) Climate change

14. : Which of the following is NOT a factor affecting Pakistan’s economic development?
(A) Political instability
(B) Skilled workforce
(C) Infrastructure development
(D) Corruption

15. : What is the main source of energy production in Pakistan?
(A) Coal
(B) Oil
(C) Natural gas
(D) Hydropower

16. : Which industry is known as the backbone of Pakistan’s economy?
(A) Textiles
(B) Automobile
(C) Information Technology
(D) Construction

17. : What is the current rate of poverty in Pakistan?
(A) 20%
(B) 30%
(C) 40%
(D) 50%

18. : Which economic indicator measures the total value of goods and services produced within Pakistan in a given year?
(A) Gross Domestic Product (GDP)
(B) Gross National Income (GNI)
(C) Consumer Price Index (CPI)
(D) Human Development Index (HDI)

19. : What is the main challenge faced by Pakistan’s manufacturing sector?
(A) Lack of skilled labor
(B) High taxation
(C) Limited access to finance
(D) Competition from foreign imports

20. : Which economic policy aims to reduce government intervention in the economy and promote private enterprise?
(A) Socialism
(B) Communism
(C) Capitalism
(D) Mercantilism

21. : What is the main source of funding for Pakistan’s development projects?
(A) Domestic borrowing
(B) Foreign aid
(C) Export earnings
(D) Tax revenue

22. : Which economic sector has the highest growth rate in Pakistan?
(A) Agriculture
(B) Industry
(C) Services
(D) Information Technology

23. : What is the main objective of Pakistan’s Five-Year Plans?
(A) Poverty alleviation
(B) Economic development
(C) Social welfare
(D) Environmental conservation

24. : Which economic indicator measures the average level of prices of goods and services in Pakistan?
(A) Gross Domestic Product (GDP)
(B) Consumer Price Index (CPI)
(C) Gross National Income (GNI)
(D) Human Development Index (HDI)

25. : What is the main challenge faced by Pakistan’s foreign exchange reserves?
(A) Insufficient reserves
(B) Overvalued currency
(C) Trade deficit
(D) Exchange rate stability

26. : Which of the following is a key component of Pakistan’s economic policy?
(A) Import substitution
(B) Export promotion
(C) Privatization
(D) All of the above

27. : What is the main objective of Pakistan’s trade policy?
(A) Import substitution
(B) Export promotion
(C) Economic diversification
(D) Fiscal consolidation

28. : Which economic sector has the highest share in Pakistan’s total employment?
(A) Agriculture
(B) Industry
(C) Services
(D) Mining

29. : What is the main challenge faced by Pakistan’s small and medium-sized enterprises (SMEs)?
(A) Lack of access to finance
(B) High taxation
(C) Limited market access
(D) Competition from large corporations

30. : What is the role of the State Bank of Pakistan in the country’s economic development?
(A) Monetary policy regulation
(B) Fiscal policy regulation
(C) Foreign exchange regulation
(D) All of the above