Under CPEC Phase-II, which sector was newly prioritised for Chinese investment beyond infrastructure and energy?

Agriculture and information technology

NACTA stands for which full form in Pakistan's security framework?

National Counter Terrorism Authority

National Anti-Crime and Terrorism Authority

National Counter Terrorism Authority

National Action and Counter Terrorism Agency

National Anti-Terrorism Coordination Assembly

Pakistan conducted airstrikes inside Afghanistan in 2022 and 2024 targeting TTP hideouts, straining relations with which Afghan ruling authority?

Afghan National Unity Government

BPSC Sub Inspector (BS-14) Current Affairs Pakistan Economy — Set 3

Question 1

Q1. A key structural condition imposed by the IMF on Pakistan under its bailout programs typically includes:

A) Increasing government subsidies on fuel
B) Raising taxes and reducing fiscal deficit
C) Restricting foreign trade
D) Nationalizing private banks

Answer: Raising taxes and reducing fiscal deficit

Explanation: IMF bailout programs for Pakistan consistently require raising tax revenues, broadening the tax base, reducing energy subsidies, and cutting the fiscal deficit as key structural conditions.

Question 2

Q2. Which of the following sectors in Pakistan has historically received the highest share of CPEC investment?

A) Agriculture modernization
B) Energy infrastructure
C) Information technology parks
D) Health and education

Answer: Energy infrastructure

Explanation: Energy infrastructure has received the highest share of CPEC investment, with power plants, transmission lines, and related facilities accounting for the majority of the $62+ billion committed under the corridor.

Question 3

Q3. Which regulatory body in Pakistan sets electricity tariffs for power companies?

A) OGRA
B) PTA
C) NEPRA
D) PEMRA

Answer: NEPRA

Explanation: NEPRA - the National Electric Power Regulatory Authority - is the statutory body established under the NEPRA Act 1997 that sets electricity tariffs and issues licences to generation, transmission, and distribution companies.

Question 4

Q4. What is the approximate total investment figure associated with the China-Pakistan Economic Corridor (CPEC)?

A) $42 billion
B) $52 billion
C) $62 billion
D) $72 billion

Answer: $62 billion

Explanation: When the CPEC framework was expanded and revised in 2017, the total investment figure was updated to approximately $62 billion, covering energy, infrastructure, and industrial projects.

Question 5

Q5. What is the Gwadar port's significance within the CPEC framework?

A) It is a river port in Punjab serving agricultural exports
B) It is a deep-sea port in Balochistan and a key CPEC node
C) It is a naval base in Sindh leased to China
D) It is an air logistics hub in Khyber Pakhtunkhwa

Answer: It is a deep-sea port in Balochistan and a key CPEC node

Explanation: Gwadar is a strategically located deep-sea port in Balochistan on the Arabian Sea; it serves as the southern terminus of CPEC and provides China with a key route for trade and energy imports bypassing the Strait of Malacca.

Question 6

Q6. Which corridor connects Pakistan's Gwadar port to China's Xinjiang province as the backbone of CPEC?

A) Silk Road Economic Belt Highway
B) Karakoram Highway
C) Makran Coastal Highway
D) Indus Valley Expressway

Answer: Karakoram Highway

Explanation: The Karakoram Highway (KKH), stretching roughly 1,300 km from Hasan Abdal in Punjab to Kashgar in Xinjiang, serves as the main overland route and logistical backbone of CPEC.

Question 7

Q7. The China-Pakistan Economic Corridor (CPEC) is an extension of China's broader global infrastructure initiative known as:

A) Asian Infrastructure Investment Bank (AIIB)
B) Regional Comprehensive Economic Partnership (RCEP)
C) Belt and Road Initiative (BRI)
D) Shanghai Cooperation Organisation (SCO)

Answer: Belt and Road Initiative (BRI)

Explanation: CPEC is a flagship project of China's Belt and Road Initiative (BRI), the global infrastructure connectivity strategy connecting China to markets in Asia, Africa, and Europe.

Question 8

Q8. Which Pakistan-China joint project in CPEC's second phase focuses on an upgrade to the Main Line-1 (ML-1) railway?

A) Lahore-Karachi motorway expansion
B) Peshawar-to-Karachi railway modernisation
C) Gwadar-Quetta road link construction
D) Islamabad-Kashgar high-speed rail

Answer: Peshawar-to-Karachi railway modernisation

Explanation: The ML-1 upgrade - covering the Peshawar-to-Karachi main railway line - is a flagship CPEC Phase-II project that would modernise Pakistan's longest rail corridor for higher speeds and increased freight capacity.

Question 9

Q9. Pakistan's inflation rate peaked at approximately what percentage in May 2023?

A) 22%
B) 28%
C) 38%
D) 45%

Answer: 38%

Explanation: Pakistan's consumer price inflation reached a historic high of approximately 38% year-on-year in May 2023, driven by energy price hikes, currency depreciation, and supply-side shocks.

Question 10

Q10. Pakistan's GDP growth rate for fiscal year 2024 was approximately:

A) 0.8%
B) 1.5%
C) 2.4%
D) 3.9%

Answer: 2.4%

Explanation: Pakistan's real GDP grew by approximately 2.4% in FY2024, recovering from the near-zero growth of FY2023, supported by an IMF programme, import compression easing, and modest agricultural rebound.

Question 11

Q11. Pakistan's State Bank policy rate was raised to a historic high of 22% in 2023 primarily to address:

A) Falling foreign exchange reserves
B) Runaway inflation and exchange rate depreciation
C) Rising trade surplus
D) Declining agricultural productivity

Answer: Runaway inflation and exchange rate depreciation

Explanation: The State Bank of Pakistan raised its benchmark policy rate to a historic high of 22% in June 2023 as a monetary tightening measure to combat inflation that had reached above 38% and to stabilize the depreciating rupee.

Question 12

Q12. Pakistan's current account deficit improved significantly in FY2023 mainly due to:

A) A surge in exports of manufactured goods
B) Sharp decline in imports due to administrative controls and currency depreciation
C) Increase in foreign direct investment inflows
D) Record high remittances from Gulf countries

Answer: Sharp decline in imports due to administrative controls and currency depreciation

Explanation: Pakistan's current account deficit narrowed sharply in FY2023 primarily because strict administrative import controls and massive currency depreciation compressed the import bill rather than export growth.

Question 13

Q13. Pakistan's energy sector circular debt had grown to over Rs. 2.3 trillion by 2023, primarily caused by:

A) Excessive power generation capacity with low recovery of bills and subsidies
B) Theft of electricity equipment
C) Low international oil prices reducing revenue
D) Devaluation of the rupee reducing imported coal costs

Answer: Excessive power generation capacity with low recovery of bills and subsidies

Explanation: Pakistan's power sector circular debt grew because of excess generation capacity with low-demand recovery, massive government subsidies, and poor bill collection rates across distribution companies.

Question 14

Q14. By mid-2024, Pakistan's inflation rate had moderated to approximately what level compared to its 2023 peak?

A) It remained at 38%
B) It rose further to 45%
C) It fell to approximately 12-15%
D) It dropped to below 5%

Answer: It fell to approximately 12-15%

Explanation: After peaking near 38% in May 2023, Pakistan's inflation moderated steadily through FY2024, falling to roughly 12-15% by mid-2024 as monetary tightening and exchange-rate stabilisation took effect.

Question 15

Q15. Which phase of CPEC primarily focused on energy projects such as power plants?

A) Phase 2
B) Phase 1
C) Phase 3
D) Phase 4

Answer: Phase 1

Explanation: CPEC Phase 1 concentrated on energy projects - coal, hydro, solar, and wind power plants - to address Pakistan's chronic electricity shortages.

Question 16

Q16. Which phase of CPEC emphasizes industrialization through Special Economic Zones (SEZs)?

A) Phase 1
B) Phase 3
C) Phase 2
D) Phase 4

Answer: Phase 2

Explanation: CPEC Phase 2 emphasises industrialisation through nine Special Economic Zones (SEZs) across Pakistan, designed to attract Chinese and local investment and boost manufacturing and export capacity.

Question 17

Q17. Which CPEC Special Economic Zone is located in Khyber Pakhtunkhwa (KP)?

A) Dhabeji SEZ
B) Bostan SEZ
C) Allama Iqbal SEZ
D) Rashakai SEZ

Answer: Rashakai SEZ

Explanation: Rashakai Special Economic Zone is located in Nowshera District, Khyber Pakhtunkhwa, and is one of the nine CPEC-designated SEZs selected for priority development under the Early Harvest Programme.

Question 18

Q18. Which CPEC Special Economic Zone is located in Sindh?

A) Rashakai SEZ
B) Bostan SEZ
C) Dhabeji SEZ
D) Allama Iqbal SEZ

Answer: Dhabeji SEZ

Explanation: Dhabeji Special Economic Zone is the CPEC SEZ designated for Sindh province, located near Karachi; it is intended to attract industrial investment and create manufacturing jobs in the region.

Question 19

Q19. Which CPEC Special Economic Zone is located in Balochistan?

A) Dhabeji SEZ
B) Rashakai SEZ
C) Allama Iqbal SEZ
D) Bostan SEZ

Answer: Bostan SEZ

Explanation: Bostan Special Economic Zone is located in Pishin district of Balochistan and is one of the nine CPEC-designated SEZs, making it the primary CPEC zone within that province.

Question 20

Q20. Which CPEC Special Economic Zone is located in Punjab?

A) Rashakai SEZ
B) Allama Iqbal SEZ
C) Dhabeji SEZ
D) Bostan SEZ

Answer: Allama Iqbal SEZ

Explanation: Allama Iqbal Industrial City (AIIC), also known as the Allama Iqbal SEZ, is the CPEC Special Economic Zone located in Faisalabad, Punjab, designated as a hub for textile and manufacturing industry.

Level 1

A key structural condition imposed by the IMF on Pakistan under its bailout programs typically includes: