CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which variable implicitly serves as the nominal anchor in Pakistan's current monetary-policy approach?
A. M2 growth as a formal target
B. Inflation and the inflation forecast
C. A fixed PKR/USD rate
D. Gold reserves only
Correct Answer: B
SBP says it currently does not set a formal intermediate nominal target; inflation and its forecast implicitly serve as the nominal anchor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The operational target of Pakistan's monetary-policy framework is to keep which rate close to the SBP policy rate?
A. Interbank overnight repo rate
B. 30-year mortgage rate
C. Export rebate rate
D. National Savings prize rate
Correct Answer: A
SBP uses liquidity operations to keep the overnight money-market repo rate close to the policy target rate.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The principal monetary-policy instrument used by the SBP is the:
A. Sales tax rate
B. Customs tariff
C. Corporate income-tax rate
D. Policy rate
Correct Answer: D
SBP describes the policy rate as its main monetary-policy instrument.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Monetary policy mainly manages a country's:
A. Constitutional amendments and elections
B. Import licenses only
C. Money supply and interest rates
D. Agricultural land records
Correct Answer: C
Monetary policy manages money and interest-rate conditions to influence inflation and economic activity.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Subject to price and financial stability, the SBP supports:
A. Only private-bank policies
B. The government's general economic policies
C. Foreign central banks' fiscal policies
D. Political-party manifestos
Correct Answer: B
The SBP Act directs the Bank to support the government's general economic policies while respecting its primary and secondary objectives.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Without prejudice to its price-stability objective, the SBP is also required to contribute to:
A. Stability of Pakistan's financial system
B. A fixed stock-market index
C. Provincial tax collection only
D. Commodity export quotas
Correct Answer: A
Financial-system stability is the SBP's secondary statutory objective after price stability.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
What medium-term inflation target range is being followed by the SBP?
A. 2–4 percent
B. 8–10 percent
C. 10–12 percent
D. 5–7 percent
Correct Answer: D
SBP states that it follows a medium-term inflation target of 5–7 percent.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
According to the SBP Act, price stability means maintaining:
A. A permanently fixed exchange rate
B. Zero taxes
C. Low and stable inflation
D. A trade surplus every month
Correct Answer: C
Price stability is defined as the maintenance of low and stable inflation guided by the government's medium-term inflation target.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
What is the primary objective of the State Bank of Pakistan under Section 4B of the SBP Act?
A. Maximize government borrowing
B. Achieve and maintain domestic price stability
C. Set stock-market prices
D. Control international oil prices
Correct Answer: B
Section 4B makes domestic price stability the SBP's primary objective.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which institution is mandated to formulate and implement monetary policy in Pakistan?
A. State Bank of Pakistan
B. Ministry of Finance
C. Pakistan Bureau of Statistics
D. Securities and Exchange Commission of Pakistan
Correct Answer: A
The State Bank of Pakistan (SBP) is Pakistan's central bank and is mandated to formulate and implement monetary policy.