August 2025 Current Affairs MCQs & Solutions

Explanation: The government announced a 97 percent increase in the Diyat value for the current fiscal year compared to the previous year. This sharp rise is attributed to the appreciation of silver prices. [Source: https://www.dawn.com/news/2019000/govt-almost-doubles-blood-money-payment-to-heirs-of-victim-on-account-of-rising-silver-prices, 28 Jul 2026]

Explanation: The petroleum and carbon levy was implemented under an agreement with the International Monetary Fund (IMF). The World Bank and ADB are common distractors in fiscal policy contexts but were not the primary parties to this specific levy agreement. [Source: https://www.dawn.com/news/2017280/jamaat-i-islami-announces-nationwide-road-blockade-against-petroleum-levy, 21 Jul 2026]

Explanation: Statement 1 is incorrect because the Bank of Punjab President advocates for 'Welfare GDP' to address microeconomic prosperity, not to replace the Sensitive Price Index for inflation tracking. Statement 2 correctly reflects the KP Assembly's legislative activity regarding the amendment of laws on lawmakers' privileges. Statement 3 accurately reflects the bilateral nature of diplomatic engagements seeking to improve agriculture and education sectors between Pakistan and New Zealand. [Source: https://www.dawn.com/news/2021413/kp-amends-controversial-law-on-lawmakers-privileges]

Explanation: Chronological order is determined by the sequencing of the actions/impacts described: The postponement of AJK elections (3) was reported, followed by the approval of civil awards (4), the emergence of Typhoon Dolphin's impact (1), and the finalization of the leadership pledge between the Senate and NA (2) on the same date. [Source: https://www.brecorder.com/news/40433957/poonch-palandri-elections-postponed-in-7-constituencies]

Explanation: Statement 1 is correct (ECC approved 13bn for PTV). Statement 2 is incorrect, as the Islamabad High Court actually suspended the order regarding the disclosure of cricketers' salaries. Statement 3 is correct regarding the restructuring of SNGPL and SSGCL into five entities. [Source: https://www.dawn.com/news/2020697/economic-coordination-committee-approves-rs13bn-lifeline-for-struggling-ptv]

Explanation: These administrative and judicial actions were reported on the same day; however, internal reporting sequences for public interest notifications often follow institutional hierarchy and time-stamping of orders provided by respective departments. [Source: https://www.dawn.com/news/2020762/lhc-disposes-of-pti-petition-for-rally-at-minar-i-pakistan-after-dc-refuses-permission]

Explanation: All three statements are factually correct based on the diplomatic, bilateral, and humanitarian reports from the specified date. Pakistan engaged in a CT dialogue with the US, DPM Dar conducted talks in Jordan concerning Jerusalem/West Bank, and the UN confirmed the worsening situation in Afghanistan. [Source: https://www.brecorder.com/news/40433411/pakistan-us-reaffirm-joint-resolve-against-regional-terrorism]

Explanation: The initial imprisonment in August 2023 was related to the concealment of details concerning Toshakhana gifts. While the Al-Qadir Trust case is also mentioned, the specific charge for the August 2023 arrest was the Toshakhana case. [Source: https://www.dawn.com/news/2000491/barbs-fly-in-senate-over-pti-founders-health-access-to-political-prisoners, 15 May 2026]

Explanation: Statement 1 is incorrect because the Makkah Joint Defence Agreement is described as an evolution toward collective deterrence rather than a bilateral pact. Statement 2 is correct as Egyptian participation is contingent upon resolving technical issues. Statement 3 is correct as the constitutional framework of AJK is designed to mirror the parliamentary system of Pakistan. [Source: https://www.dawn.com/news/2021671/egypt-could-join-pak-saudi-turkiye-defence-pact-once-technical-issues-resolved-says-turkish-foreign-minister]

Explanation: All events occurred on August 9, 2026. The logical sequence for reporting the impact of internal disruption (strike) leads to the clarification of defense policy (DPM Dar), followed by international economic indicators (China CPI), and finally, external geopolitical expansion (Egypt's interest). [Source: https://www.dawn.com/news/2021626/goods-oil-transporters-strike-threatens-industry-exports]

Explanation: While all events occur on 09 August 2026, the thematic progression reflects the shift from constitutional governance in AJK, to regional trilateral defense pacts, to industrial strike disruptions, and finally to international economic indicators like China's factory-gate inflation data. This sequence follows the logical reporting flow from constitutional-political to security, domestic economic, and finally macroeconomic data. [Source: https://www.dawn.com/news/2021618/conflicting-priorities]

Explanation: Statement 1 is correct as the IHC is examining the constitutional implications of pending PM advice on judicial appointments. Statement 2 is incorrect because Prime Minister Shehbaz Sharif explicitly stated the Makkah Joint Defence Agreement is defensive in nature, not for aggression. Statement 3 is correct as intelligence-based operations in Balochistan reflect the evolving security strategy described in the report. [Source: https://www.dawn.com/news/2021893/delay-in-judicial-appointments-ihc-tells-govt-to-explain-consequences-of-keeping-pms-advice-pending]

Explanation: The order reflects the standard reporting sequence provided in the source digest for the date August 10, 2026, starting with the executive health update, followed by the water security achievement, the progress of AJK electoral phases, and the AJK internal security measures. [Source: https://www.dawn.com/news/2021885/malaysia-pm-anwar-ibrahim-undergoes-elective-surgery-to-treat-hernia]

Explanation: The external sector remained stable, with the current account recording a surplus of 255 million dollars during the Jul-May period of the 2026 fiscal year, supported by remittances and IT exports. [Source: https://www.dawn.com/news/2011978/govt-expects-easing-inflationary-pressure-in-new-fiscal-year-following-reopening-of-strait-of-hormuz, 30 Jun 2026]

Explanation: Statement 1 is correct as the purchase occurred in the 2024-2025 financial year. Statement 2 is correct as the Secretariat cited a transparent procurement process. Statement 3 is incorrect because the vehicle was delivered in March 2026, not May 2025 (which was when the payment was made). [Source: https://www.dawn.com/news/1982703/rebuttal-on-purchase-of-luxury-vehicle-for-yousaf-raza-gilani-from-senate-budget-leaves-questions-unanswered, 16 Mar 2026]

Explanation: The total disbursements under the EFF and RSF reached $4.8 billion, while the latest approval was $1.32 billion. Reserves grew from $14.5 billion in June 2025 to $16 billion in December 2025. [Source: https://www.dawn.com/news/1998725/imfs-executive-board-approves-12-billion-financing-for-pakistans-reform-programme, 08 May 2026]

Explanation: The IMF report confirmed that foreign exchange reserves reached $16 billion by the end of December 2025, an increase from the $14.5 billion recorded in June 2025. [Source: https://www.dawn.com/news/1998725/imfs-executive-board-approves-12-billion-financing-for-pakistans-reform-programme, 08 May 2026]

Explanation: All three statements are factually accurate based on the details provided in the case records. The Toshakhana 2 conviction occurred in December 2025, the nature of the £190 million case is correctly described, and the medical diagnosis of retinal detachment was confirmed by jail authorities. [Source: https://www.dawn.com/news/1992994/bushra-bibi-moves-ihc-seeking-to-suspend-sentence-in-ps190m-corruption-case-on-medical-grounds, 18 Apr 2026]

Explanation: The State Bank of Pakistan warned of potential inflationary price spirals, and the Supreme Court declared retrospective tax penalties unlawful. The World Bank expressed concern specifically over the diversion of funds from the Balochistan housing program, not the federal policy. [Source: https://www.dawn.com/news/2022040/sbp-warns-of-price-spirals]

Explanation: Chronological reporting for the day reflects the official approval of judicial appointments, followed by the announcement of remittance increases, the ongoing industrial strike of transporters, and finally, federal cabinet policy approvals. [Source: https://www.dawn.com/news/2022098/president-zardari-approves-additional-judges-appointments-to-high-courts-after-days-long-delay]