Free Economy of Pakistan MCQs with Answers

390 Economy of Pakistan MCQs from Economics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.

Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.

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390 questions · page 15 of 20

  • A. cement
  • B. Sugar
  • C. Textile
  • D. Paper

Explanation: Textiles are Pakistan’s largest industrial sector and a major source of exports, employment, and foreign exchange.

Correct answer: Textile
  • A. Embroidery work
  • B. irrigation work
  • C. wood work
  • D. agriculture

Explanation: Mianwali is associated with irrigation works, particularly because of its connection with the Indus River and major irrigation…

Correct answer: irrigation work
  • A. Sialkot
  • B. Chiniot
  • C. Gujranwala
  • D. Lahore

Explanation: Sialkot is internationally recognized for producing high-quality footballs, surgical instruments, and other sports goods.

Correct answer: Sialkot
  • A. Cement
  • B. Sugar
  • C. Handicraft
  • D. Textile

Explanation: Handicrafts are typically produced by households or small workshops using relatively simple tools, which makes them a cottage industry.

Correct answer: Handicraft
  • A. Little England
  • B. Little California
  • C. Little Manchester
  • D. Little Oxford

Explanation: Faisalabad is called “Little Manchester” because of its extensive textile and manufacturing industry.

Correct answer: Little Manchester
  • A. August 3, 2000
  • B. September 15, 2001
  • C. July 13, 2000
  • D. August 15, 2000

Explanation: Pakistan Meteorological Department records commonly cite 3 August 2000 as the date of its successful artificial-rainfall experiment in…

Correct answer: August 3, 2000
  • A. China
  • B. Japan
  • C. USA
  • D. UK

Explanation: Heavy Mechanical Complex at Taxila was established with Chinese assistance, reflecting Pakistan-China cooperation in heavy engineering.

Correct answer: China
  • A. August 10, 1991
  • B. July 16, 1990
  • C. September 12, 1992
  • D. October 16, 1989

Explanation: Badr-I, Pakistan’s first satellite, was launched on 16 July 1990 using a Chinese launch vehicle.

Correct answer: July 16, 1990
  • A. Karachi Shipyard
  • B. Pakistan Steel Mili
  • C. State Cement
  • D. Telephone Industry of Pakistan

Explanation: Pakistan Steel Mills was the country’s largest public-sector industrial unit, established at Karachi with Soviet assistance.

Correct answer: Pakistan Steel Mili
  • A. musical instruments
  • B. agriculture machinery
  • C. harvesters
  • D. paper manufacturing

Explanation: Sialkot is known for leather goods such as saddles as well as musical instruments, surgical instruments and sports goods.

Correct answer: musical instruments
  • A. Woodwork
  • B. Dairy farms
  • C. Carpets
  • D. Iron work

Explanation: Dairy farming is agro-based because it depends directly on livestock and agricultural production and supplies milk for processing.

Correct answer: Dairy farms
  • A. laquer work
  • B. fire work
  • C. wooden work
  • D. None of them

Explanation: Chiniot is particularly famous for intricate wooden carving, furniture and woodwork.

Correct answer: wooden work
  • A. export led growth
  • B. import substitution
  • C. dynamic hedging
  • D. countervailing duties

Explanation: Import substitution promotes domestic production by protecting local industries from foreign competition through tariffs and import…

Correct answer: import substitution
  • A. not be affected
  • B. fluctuate more than if exports were lower
  • C. depreciate
  • D. appreciate

Explanation: Higher-than-expected export receipts increase foreign demand for Pakistan's currency because overseas buyers need it to pay domestic…

Correct answer: appreciate
  • A. 1978
  • B. 1988
  • C. 1998
  • D. 2000

Explanation: Pakistan's censuses were conducted in 1951, 1961, 1972, 1981, and 1998.

Correct answer: 1998
  • A. 1858
  • B. 1869
  • C. 1881
  • D. 1901

Explanation: The first regular, synchronous census of the Indian subcontinent was held in 1881.

Correct answer: 1881
  • A. K.P.K
  • B. Punjab
  • C. Baluchistan
  • D. Sindh

Explanation: Balochistan has the largest area but the smallest population among Pakistan's provinces, so its population density is the lowest.

Correct answer: Baluchistan
  • A. Urdu
  • B. Panjabi
  • C. Sindhi
  • D. Pushto

Explanation: Punjabi is Pakistan's most widely spoken mother tongue and is concentrated mainly in Punjab, although Urdu is the principal national…

Correct answer: Panjabi
  • A. K.P.K
  • B. Sindh
  • C. Punjab
  • D. Baluchistan

Explanation: Sindh is the most urbanized province because Karachi, Pakistan’s largest metropolitan area, contributes a very large urban population.

Correct answer: Sindh
  • A. 630
  • B. 780
  • C. 882
  • D. 990

Explanation: The cited older demographic estimate for Islamabad gives a population density of about 882 persons per square kilometre.

Correct answer: 882