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Economy of Pakistan: Sectors and Economic Indicators (1947–Present) MCQs

Pakistan’s economy has transformed from a largely agriculture-based economy in 1947 into a diversified system consisting of agriculture, industry and services. For competitive exams, students should understand both this historical transition and the latest indicators such as GDP growth, inflation, policy rate, foreign-exchange reserves, investment, remittances and IMF reforms.

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Economy of Pakistan: Sectors and Economic Indicators (1947–Present)

Economy of Pakistan: Sectors and Economic Indicators (1947–Present) MCQs With Answers

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CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
In FY2026, the services sector's share in GDP was approximately:
A. 18.14 percent
B. 23.44 percent
C. 58.42 percent
D. 75 percent
Read Theory
Correct Answer: C
Services accounted for about 58.42 percent of GDP.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
According to the Economic Survey 2025-26, the services sector grew by:
A. 2.89 percent
B. 3.51 percent
C. 4.09 percent
D. 7.52 percent
Read Theory
Correct Answer: C
Services sector growth was recorded at 4.09 percent.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
According to the Economic Survey 2025-26, the industrial sector grew by:
A. 2.89 percent
B. 3.51 percent
C. 4.09 percent
D. 6.61 percent
Read Theory
Correct Answer: B
Overall industrial activities grew by 3.51 percent.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
According to the Economic Survey 2025-26, agriculture grew by:
A. 1.44 percent
B. 2.89 percent
C. 3.51 percent
D. 4.09 percent
Read Theory
Correct Answer: B
Agriculture, forestry and fishing recorded growth of 2.89 percent.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
According to the Pakistan Economic Survey 2025-26, provisional real GDP growth in FY2026 was:
A. 2.68 percent
B. 3.70 percent
C. 5.50 percent
D. 7.05 percent
Read Theory
Correct Answer: B
The Survey estimated real GDP growth at 3.70 percent for FY2026.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
The investment-to-GDP ratio measures:
A. Gross investment relative to GDP
B. Only foreign aid
C. Only bank deposits
D. Only public salaries
Read Theory
Correct Answer: A
It reflects the share of national output devoted to capital formation.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
The tax-to-GDP ratio measures:
A. Tax revenue relative to the size of the economy
B. Taxes per province only
C. Exports relative to imports
D. Debt relative to reserves
Read Theory
Correct Answer: A
It indicates the government's capacity to mobilize tax resources.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Currency depreciation can improve exports if:
A. Exporters respond and demand is sufficiently price-sensitive
B. Production capacity is zero
C. All inputs are imported
D. Trade is banned
Read Theory
Correct Answer: A
Competitiveness effects depend on supply response, elasticities and import content.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
A depreciation of the rupee means:
A. More rupees are required to buy one unit of foreign currency
B. Fewer rupees buy one dollar
C. Inflation becomes zero
D. Exports are prohibited
Read Theory
Correct Answer: A
Depreciation is a fall in the currency's external value.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Foreign-exchange reserves are held primarily to:
A. Meet external payment needs and support confidence
B. Pay only domestic salaries
C. Measure crop yields
D. Set provincial boundaries
Read Theory
Correct Answer: A
Reserves provide a buffer for imports, debt payments and market stability.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Foreign portfolio investment generally involves:
A. Investment in financial securities
B. Building and managing a factory only
C. Workers sending money home
D. Export receipts
Read Theory
Correct Answer: A
Portfolio flows purchase equities and debt securities without direct management control.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Foreign direct investment normally involves:
A. A lasting ownership interest and managerial influence
B. Only short-term currency trading
C. Workers' remittances
D. Foreign aid grants only
Read Theory
Correct Answer: A
FDI reflects long-term investment in productive enterprises.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
A trade deficit occurs when:
A. Goods imports exceed goods exports
B. Exports exceed imports
C. Remittances exceed exports
D. Reserves exceed debt
Read Theory
Correct Answer: A
The merchandise trade balance is negative when imports are larger.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
The current account includes trade in goods and services, primary income and:
A. Secondary income such as remittances
B. Only foreign loans
C. Only FDI
D. Only reserve changes
Read Theory
Correct Answer: A
The current account records trade, income and transfers.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
The balance of payments records transactions between residents of Pakistan and:
A. The rest of the world
B. Only provincial governments
C. Only banks
D. Only exporters
Read Theory
Correct Answer: A
BoP covers trade, income, transfers, investment and financial flows.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Debt sustainability means a government can:
A. Meet debt obligations without unrealistic adjustment or default
B. Borrow without limit
C. Eliminate taxes
D. Ignore interest payments
Read Theory
Correct Answer: A
Sustainable debt can be serviced while maintaining economic and fiscal stability.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
External public debt is generally denominated in:
A. Foreign currencies
B. Only Pakistani coins
C. Only wheat units
D. Provincial tax stamps
Read Theory
Correct Answer: A
External debt creates foreign-exchange repayment obligations.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Domestic public debt is borrowed in:
A. The domestic market and usually local currency
B. Only foreign markets
C. Only gold
D. Only agricultural commodities
Read Theory
Correct Answer: A
Domestic debt includes local securities and other domestic obligations.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
Public debt is accumulated mainly through:
A. Past government borrowing
B. Current crop output
C. Population growth alone
D. Bank deposits only
Read Theory
Correct Answer: A
Debt is the stock resulting from borrowing and related valuation changes.
CSS - PMS - CCE - PCS - Pakistan Affairs (P.A) 1947 - Present - Economy - Economy of PakistanSectors and Indicators
A primary surplus means:
A. Revenue exceeds non-interest expenditure
B. Exports exceed imports
C. Inflation is negative
D. Debt is zero
Read Theory
Correct Answer: A
A primary surplus indicates positive fiscal balance before interest payments.
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