Pakistan Studies/Affairs MCQs
Topic Notes: Pakistan Studies/Affairs
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
21
The 'Federal Excise Duty' (FED) is typically levied on:
Answer:
Specific luxury or harmful goods like cigarettes and sugary drinks
FED is an indirect tax levied on specific goods produced or imported into Pakistan. It is often used as a 'sin tax' on products like tobacco and aerated beverages, or on luxury services like air travel.
22
Who chairs the National Finance Commission?
Answer:
The Federal Finance Minister
The NFC is chaired by the Federal Finance Minister and includes the four provincial Finance Ministers and other experts nominated by the President in consultation with provincial governors.
23
The 'Supplementary Budget' is introduced when:
Answer:
Additional funds are needed beyond the original approved budget
A supplementary budget (or supplementary grant) is requested by the government when the actual expenditure on a particular head exceeds the amount originally authorized by the National Assembly for that year.
24
Which province receives the second-largest share of the Divisible Pool under the NFC Award?
Answer:
Sindh
Due to the population-heavy formula, Punjab receives the largest share, followed by Sindh, then Khyber Pakhtunkhwa, and finally Balochistan.
25
What is 'Circular Debt' in Pakistan's economy?
Answer:
A chain of unpaid dues in the energy sector
Circular debt occurs when power distribution companies fail to pay power producers, who then cannot pay fuel suppliers. This creates a liquidity crisis in the entire energy supply chain, often requiring massive government bailouts from the budget.
26
The 'Current Expenditure' of the government includes spending on:
Answer:
Running the day-to-day operations of the government
Current expenditure (or non-development expenditure) covers the operational costs of the state, including salaries of civil servants, defense spending, interest payments, and subsidies.
27
Which of the following is a direct tax in Pakistan?
Answer:
Income Tax
Income tax is a direct tax because it is paid directly by the person or entity earning the income to the government. Indirect taxes, like sales tax, are collected by a third party (like a retailer) from the consumer.
28
What is the 'Divisible Pool' in the context of the NFC?
Answer:
The collection of specific federal taxes to be shared with provinces
The Divisible Pool consists of the net proceeds of taxes like Income Tax, Sales Tax, Wealth Tax, Customs Duties, and Federal Excise Duties collected by the federal government, which are then distributed between the center and provinces based on the NFC formula.
29
Which federal body is responsible for collecting taxes in Pakistan?
Answer:
Federal Board of Revenue (FBR)
The FBR is the semi-autonomous federal agency responsible for administering federal taxes, including Income Tax, Sales Tax, Customs, and Federal Excise Duty. It is under the administrative control of the Revenue Division, Ministry of Finance.
30
The 'Tax-to-GDP' ratio in Pakistan is generally considered to be:
Answer:
Low, typically hovering around 9-10%
Pakistan's Tax-to-GDP ratio is historically low compared to regional peers and developed nations. This limited revenue base makes it difficult for the government to fund infrastructure and social services without heavy borrowing.