CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which SBP instrument anchors the interest-rate corridor?
A. Policy rate
B. Tax rate
C. Exchange-company fee
D. Treasury customs duty
Correct Answer: A
The policy target rate sits within the SBP interest-rate corridor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC may formulate decisions regarding intermediate monetary objectives:
A. Never
B. Only with UN approval
C. Only during an IMF programme
D. As appropriate
Correct Answer: D
Section 9E allows the MPC to formulate policy including intermediate monetary objectives as appropriate.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which of the following is NOT a statutory function of the MPC?
A. Setting key interest rates
B. Approving monetary-policy statements
C. Approving the federal tax code
D. Deciding reserve-supply policy
Correct Answer: C
Tax legislation is outside the MPC's statutory monetary-policy functions.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
As of 2026, the Governor and MPC Chairperson was:
A. Reza Baqir
B. Jameel Ahmad
C. Shamshad Akhtar
D. Yaseen Anwar
Correct Answer: B
Jameel Ahmad is listed by SBP as Governor and Chairperson of the MPC.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
If the SBP Governor is absent, the MPC may be chaired by:
A. A Deputy Governor nominated by the Governor
B. The Finance Minister automatically
C. The senior-most commercial banker
D. The Auditor General
Correct Answer: A
The SBP Act provides for a Deputy Governor nominated by the Governor to chair in the Governor's absence.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC is fully empowered to decide:
A. The federal development budget
B. Income-tax legislation
C. Provincial borrowing limits by constitutional amendment
D. The monetary-policy stance
Correct Answer: D
SBP states that the MPC is responsible and fully empowered to decide the monetary-policy stance.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC is best described as a:
A. Private advisory club
B. Temporary donor committee
C. Statutory body
D. Parliamentary standing committee
Correct Answer: C
The MPC is a statutory body formed under the SBP Act.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Who approves and issues Pakistan's Monetary Policy Statement?
A. Federal Cabinet only
B. Monetary Policy Committee
C. National Economic Council
D. Pakistan Bureau of Statistics
Correct Answer: B
Approving and issuing the Monetary Policy Statement is one of the MPC's statutory functions.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC has authority to make decisions relating to:
A. Key interest rates and supply of reserves
B. Federal income-tax slabs
C. Provincial development budgets
D. Stock-market listing rules only
Correct Answer: A
The MPC's statutory responsibilities include intermediate objectives, key interest rates and reserve supply.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Which SBP Act section principally lays out the powers and functions of the MPC?
A. Section 2
B. Section 4B only
C. Section 35
D. Section 9E
Correct Answer: D
Section 9E specifies the MPC's policy powers and functions.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The MPC is established under which sections of the SBP Act?
A. Sections 1 and 2
B. Sections 20 and 21
C. Sections 9D and 9E
D. Sections 51 and 52
Correct Answer: C
SBP identifies Sections 9D and 9E as the statutory basis for the MPC.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
An external MPC member may be reappointed for:
A. Unlimited terms
B. One further term of three years
C. One further term of one year
D. No second term
Correct Answer: B
The law allows reappointment for another three-year term.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
An external MPC member is appointed for an initial term of:
A. Three years
B. One year
C. Five years
D. Seven years
Correct Answer: A
The SBP Act provides a three-year term for external MPC members.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
External MPC members are required by the SBP Act to be:
A. Serving judges
B. Military officers
C. Provincial chief secretaries
D. Economists
Correct Answer: D
Section 9D specifies that the external members shall be economists.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Who appoints the MPC's external members?
A. Governor alone
B. National Assembly Speaker
C. Federal Government on the recommendation of the SBP Board
D. Supreme Court
Correct Answer: C
External members are appointed by the Federal Government on the Board's recommendation.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
How many external members sit on the MPC?
A. Two
B. Three
C. Four
D. Five
Correct Answer: B
The MPC includes three external members.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
How many SBP Board members are nominated by the Board to serve on the MPC?
A. Three
B. One
C. Two
D. Four
Correct Answer: A
Three members of the SBP Board serve on the MPC.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
How many senior SBP executives are nominated by the Governor to serve on the MPC?
A. One
B. Two
C. Five
D. Three
Correct Answer: D
Three senior executives of the Bank are nominated by the Governor.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
Who serves as Chairperson of the MPC?
A. Federal Finance Minister
B. Finance Secretary
C. Governor, State Bank of Pakistan
D. Chairman FBR
Correct Answer: C
The Governor of SBP is the MPC chairperson.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Pakistan Monetary Policy 2026
The SBP Monetary Policy Committee consists of how many members?
A. 7
B. 10
C. 9
D. 12
Correct Answer: B
The MPC has ten members under the SBP Act.