current affairs MCQ #7246

Pakistan's electricity export to Afghanistan has been disrupted due to payment arrears. A government review is deciding whether to continue, expand, or terminate this export arrangement. Which factor MOST strongly argues for continuing limited electricity exports despite domestic shortfalls?

current affairs MCQ #7246

  1. Question 1

    Q1. Pakistan's electricity export to Afghanistan has been disrupted due to payment arrears. A government review is deciding whether to continue, expand, or terminate this export arrangement. Which factor MOST strongly argues for continuing limited electricity exports despite domestic shortfalls?

    • A) Afghanistan pays in US dollars, generating foreign exchange that partially offsets energy import costs
    • B) Pakistan has a legal obligation under SAARC energy treaties to supply Afghanistan
    • C) Exporting electricity reduces domestic consumption, lowering circular debt
    • D) Terminating exports would require renegotiating all existing bilateral trade agreements

    Answer: Afghanistan pays in US dollars, generating foreign exchange that partially offsets energy import costs

    Explanation: Afghanistan pays for electricity imports in US dollars, providing Pakistan with scarce foreign exchange that partially offsets energy import costs, making continued exports economically rational despite domestic supply pressures.