current affairs MCQ #6940

What is the significance of Pakistan achieving a "primary surplus" under the IMF EFF program?

current affairs MCQ #6940

  1. Question 1

    Q1. What is the significance of Pakistan achieving a "primary surplus" under the IMF EFF program?

    • A) It demonstrates fiscal discipline showing revenues exceed non-interest expenditures, a key IMF benchmark for debt sustainability
    • B) It means Pakistan's trade balance turned positive for the first time
    • C) It indicates Pakistan no longer needs foreign aid
    • D) It shows that Pakistan's defense budget has been reduced

    Answer: It demonstrates fiscal discipline showing revenues exceed non-interest expenditures, a key IMF benchmark for debt sustainability

    Explanation: A primary surplus means the government's revenues exceed its non-interest expenditures; achieving it signals fiscal discipline and is a core IMF benchmark because it indicates the country can service its debt without borrowing further.