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The MCQs below are drawn from the Persian subject category.
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2441
In the context of economic stabilization policies, which of the following measures is typically associated with 'contractionary fiscal policy' aimed at reducing high inflation?
Contractionary fiscal policy involves reducing aggregate demand to cool down an overheating economy, which is achieved by cutting government spending or increasing taxes to reduce the budget deficit.
Consider the following statements about the BPS-2026 notification:
1. The new pay scales apply to federal civil employees paid from both civil and defence estimates.
2. Employees posted abroad are eligible to receive the Ad hoc Relief Allowance-2026 during their foreign tenure.
3. The 2022 and 2025 ad hoc relief allowances were abolished upon the implementation of the new scales.
Which of the statements given above is/are correct?
Statement 1 is correct as the notification covers both civil and defence estimates. Statement 3 is correct as the 2022 and 2025 allowances were merged and abolished. Statement 2 is incorrect because employees posted abroad are explicitly excluded from receiving the allowance during their foreign posting. [Source: https://www.brecorder.com/news/40431195/salary-increase-notified-govt-issues-revised-bps-2026-for-civil-servants, 22 Jul 2026]
2443
How do Multilateral Development Banks (MDBs) primarily differ from commercial financial institutions in their development finance role?
MDBs, such as the World Bank or Asian Development Bank, are distinguished by their mandate to provide long-term financing and technical expertise to member countries for development goals, often at rates more favorable than commercial markets.
The Washington Consensus emphasizes market-oriented reforms, specifically fiscal discipline, trade liberalization, and privatization, as the primary tools for achieving macroeconomic stabilization in developing economies.
The WTO is a global governance institution focused on the rules of trade between nations, whereas the IMF is focused on the stability of the international monetary system and balance of payments.
The IMF's core mandate focuses on maintaining international monetary cooperation and financial stability by providing temporary financial assistance to countries experiencing balance of payments difficulties, distinct from the World Bank's long-term development focus.
Consider the following statements about the fuel pricing policy in Pakistan:
1. The government transitioned to a daily fuel pricing mechanism due to international market volatility.
2. The Petroleum Division announced that fuel prices would be fixed weekly starting from July 2026.
3. Regional hostilities in the Persian Gulf have been cited as a primary factor for the recent price fluctuations.
Which of the statements given above is/are correct?
Statement 1 and 3 are correct as the government moved to a daily pricing mechanism due to regional hostilities. Statement 2 is incorrect because the government moved to a daily, not weekly, pricing mechanism. [Source: https://www.dawn.com/news/2017065/govt-decreases-petrol-price-by-rs035-increases-diesel-by-rs571-per-litre, 20 Jul 2026]
2448
Which Article of the Constitution of Pakistan guarantees the freedom of speech and expression?
Article 19 of the Constitution of Pakistan provides for the freedom of speech, expression, and the press, subject to reasonable restrictions imposed by law in the interest of the glory of Islam or the integrity, security, or defense of Pakistan.
The Federal Board of Revenue operates under the Revenue Division, which is a part of the Ministry of Finance. It is the primary agency responsible for the collection of federal taxes in Pakistan.
The statement that the Balochistan Liberation Army (BLA) has never claimed responsibility for attacks is false, as the BLA has previously claimed responsibility for attacks, such as the 2022 suicide bombing at the University of Karachi's Confucius Institute. [Source: https://www.dawn.com/news/2016208/security-of-chinese-in-pakistan-paramount-for-us-says-pm-shehbaz, 17 Jul 2026]
