August 2025 Current Affairs MCQs & Solutions

Explanation: Statement 1 is correct regarding the 600 billion rupee board approval. Statement 3 is correct regarding Basel III compliance. Statement 2 is incorrect because the bank's previous perpetual bond issuance occurred in October 2024, whereas Canara Bank issued bonds in November 2025. [Source: https://www.brecorder.com/news/40431637/indias-sbi-to-issue-first-rupee-denominated-perpetual-debt-of-2026-sources-say, 24 Jul 2026]

Explanation: The Ministry of Finance fixed the markup rate at 11.89 percent for the 2025-26 fiscal year. This represents a significant reduction from the 17.74 percent rate applied in the previous fiscal year. [Source: https://www.dawn.com/news/2018194/centre-cuts-markup-on-uplift-loans-to-1189pc, 24 Jul 2026]

Explanation: Statements 1 and 2 are correct. Statement 3 is incorrect because the probability of a Federal Reserve rate hike in September was reported at 80%, while the probability for July was 30%. [Source: https://www.brecorder.com/news/40431650/india-bonds-end-three-day-losing-streak-but-post-second-straight-weekly-decline, 24 Jul 2026]

Explanation: Statement 1 is incorrect because the US business delegation visit to Karachi was focused on FDI through the SIFC, not the ECP's electoral governance. Statement 2 is accurate as Pakistan Railways is digitizing land records to retrieve encroached state assets. Statement 3 correctly identifies that mining safety in Pakistan is now a provincial mandate following the 18th Constitutional Amendment. [Source: https://www.brecorder.com/news/40433041/us-business-team-completes-2-day-visit-of-karachi]

Explanation: Based on the provided reports for August 2, 2026: The recovery of 2,552 acres by Pakistan Railways (Event 4) serves as a recent administrative achievement. The EU's enforcement of the AI law (Event 1) and the US delegation visit (Event 2) were confirmed activities of the day, followed by the tragic security updates in Swat (Event 3). [Source: https://www.brecorder.com/news/40433039/railways-retrieves-2552-acres-of-encroached-land]

Explanation: Statement 1 is correct as the government has executed agreements with pension fund managers to reform the system. Statement 2 is correct as the PCB challenged an IHC order to disclose player financial details. Statement 3 is incorrect because the Senate Subcommittee's recent action concerned the tobacco smuggling seizure, while the vaccine-preventable mortality crisis is a separate public health issue. [Source: https://www.dawn.com/news/2020481/govt-executes-agreements-with-pension-fund-managers]

Explanation: The report on child mortality (2) tracks events 'since January'. The Swat bombing (1) represents a specific recent security incident. The US visa bond policy (3) and the hosting of Iranian officials (4) are contemporary diplomatic/administrative developments reflecting current geopolitical and policy shifts. [Source: https://www.dawn.com/news/2020448/144-children-lost-to-diphtheria-measles-since-january-in-karachi]

Explanation: Statements 1 and 2 are accurate based on the provided event summaries regarding US-Pakistan economic cooperation and Turkish legislative efforts. Statement 3 is incorrect because the KSE-100 index actually rose above 180,000 points, rather than dropping below 150,000. [Source: https://www.dawn.com/news/2020895/us-firms-look-to-pakistan-for-critical-mineral-supplies]

Explanation: Statement 1 is correct as Iran officially denied engagement despite US announcements. Statement 2 is incorrect because the Strait of Hormuz is the central concern for US-Iran diplomacy, not the Gaza conflict. Statement 3 is correct as the Wana explosion specifically involved the targeted killing of a religious scholar/cleric. [Source: https://www.dawn.com/news/2020319/iran-denies-negotiations-with-us-after-trump-announces-talks]

Explanation: While all events share the date of August 3, 2026, the logic follows the sequence of systemic legislative review, then active regional conflict (Gaza), moving to international diplomatic security (Hormuz), and finally domestic terror incidents (Moscow). [Source: https://www.dawn.com/news/2020267/no-more-torture]

Explanation: The CRS report notes that the Department of Defence adopted the title 'Department of War' following an executive order issued in September 2025. [Source: https://www.dawn.com/news/2002532/congressional-report-details-losses-of-42-us-aircraft-in-iran-campaign, 23 May 2026]

Explanation: While the US cancelled an attack to pursue diplomacy, Iran has explicitly denied that negotiations are underway, rendering statements 1 and 3 incorrect. The government's reduction of petroleum product prices is accurate as per recent reports. [Source: https://www.dawn.com/news/2020327/oil-tumbles-as-trump-cancels-attack-on-iran-to-reach-deal-aimed-at-reopening-hormuz]

Explanation: The sequence follows the reporting order of the incidents: the Moscow bombing incident, the escalation in Gaza, the targeted killing in Wana, and the subsequent impact on the Pakistan Stock Exchange. [Source: https://www.dawn.com/news/2020282/woman-bomber-kills-3-near-moscow-restaurant]

Explanation: The PCB (Event: 0ad64b0f...) enforces institutional accountability for misconduct, while the Peshawar High Court (Event: b3926b00...) exercises constitutional mandate under Article 199 regarding residency petitions. Additionally, the Senate Committee (Event: 17b1abf4...) is actively scrutinizing public sector compensation to ensure administrative and financial transparency within state organizations. [Source: https://www.dawn.com/news/2021098/pcb-bans-all-rounder-hamza-for-two-years-over-misleading-visa-information]

Explanation: All events occurred on the same date (August 7, 2026). In academic test design, when events share a specific calendar day, they are classified by their logical sequence in the national news cycle and policy-making context: PCB disciplinary action, followed by regional sports scheduling, bilateral strategic engagement, and finally geopolitical defensive alignment. [Source: https://www.dawn.com/news/2021098/pcb-bans-all-rounder-hamza-for-two-years-over-misleading-visa-information]

Explanation: All three statements accurately reflect the provided reports: the KSE-100 rally, the involvement of US DFIs in Pakistan's mineral sector, and the upcoming banking awards scheduled for August 21. Each event illustrates distinct facets of Pakistan’s current economic and institutional trajectory. [Source: https://www.dawn.com/news/2020895/us-firms-look-to-pakistan-for-critical-mineral-supplies]

Explanation: The sequence is determined by the 2024 Bangladesh uprising, followed by the specific disaster reports from India (August 6, 2026), the legislative action in Turkey (August 6, 2026), and finally the scheduled Pakistan Banking Awards (August 21, 2026). [Source: https://www.dawn.com/news/2020870/floods-landslides-leave-over-100-dead-as-monsoon-batters-india]

Explanation: The interior ministry reversed the approvals of more than 600 Afghans, labeling them as invalid. This figure represents the scale of the administrative action challenged in the court case. [Source: https://www.dawn.com/news/2018224/court-rules-against-berlin-in-afghan-resettlement-case, 25 Jul 2026]

Explanation: The Economic Survey 2025-26 reported that wheat production increased to 29.61 million tonnes in FY26, up from 28.40 million tonnes in the previous fiscal year. Option A represents the production figure for FY25, making it a plausible but incorrect distractor. [Source: https://www.dawn.com/news/2018192/private-sector-rejects-govt-wheat-import-plan, 25 Jul 2026]

Explanation: Statement 1 is correct as the agreement was signed in 2025. Statement 3 is correct as Pakistan has engaged in diplomatic mediation. Statement 2 is incorrect because the spokesperson explicitly stated that commenting on the specifics of military aid would be 'speculative and irresponsible'. [Source: https://www.dawn.com/news/1980894/no-matter-what-no-matter-when-pms-spokesperson-reiterates-support-for-saudi-arabia-before-it-is-needed, 11 Mar 2026]