December 2025 Edition
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December 2025 Current Affairs MCQs & Solutions
Top national & international current affairs questions for CSS, PMS, FPSC, PPSC, and NTS screening tests.
#2081
The government's petroleum and carbon levy was announced in June 2025 as part of a commitment to which international organization?
(a) World Bank
(b) Asian Development Bank
(c) World Trade Organization
(d) International Monetary Fund
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]
#2082
Which international agreement did India unilaterally suspend following the Pahalgam attack in 2025?
(a) Simla Agreement
(b) Tashkent Declaration
(c) Lahore Declaration
(d) Indus Waters Treaty
Explanation: India suspended the Indus Waters Treaty as part of its aggressive measures against Pakistan. The other agreements listed are historical diplomatic frameworks that were not the primary target of this specific suspension. [Source: https://www.dawn.com/news/1994381/pakistan-rejects-indian-propaganda-on-pahalgam-attack-deplores-weaponisation-of-false-narrative, 23 Apr 2026]
#2083
Consider the following statements about the 2025 Pahalgam incident: 1. The attack primarily targeted tourists in the disputed Himalayan region. 2. It was the deadliest armed attack in the region since the year 2000. 3. India provided conclusive evidence linking Pakistan to the attack immediately after the incident. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statements 1 and 2 are factually correct based on the report. Statement 3 is incorrect because the report explicitly states that New Delhi blamed Pakistan without providing any evidence. [Source: https://www.dawn.com/news/1994381/pakistan-rejects-indian-propaganda-on-pahalgam-attack-deplores-weaponisation-of-false-narrative, 23 Apr 2026]
#2084
What was the name of the military operation conducted by Pakistan in response to Indian adventurism following the 2025 Pahalgam attack?
(a) Operation Zarb-e-Azb
(b) Operation Bunyanum Marsoos
(c) Operation Swift Retort
(d) None of these
Explanation: The Foreign Office explicitly referenced Operation Bunyanum Marsoos as the response to India's military actions in 2025. Other operations listed are either historical or unrelated to this specific timeline. [Source: https://www.dawn.com/news/1994381/pakistan-rejects-indian-propaganda-on-pahalgam-attack-deplores-weaponisation-of-false-narrative, 23 Apr 2026]
#2085
The primary surplus achieved by Pakistan during the period of July 2025 to April 2026 was:
(a) 3.5 percent of GDP
(b) 3.0 percent of GDP
(c) 2.5 percent of GDP
(d) 4.0 percent of GDP
Explanation: Effective expenditure management and revenue mobilization efforts enabled the government to achieve a primary surplus of 3.5 percent of GDP during the Jul-Apr period of the 2026 fiscal year. [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]
#2086
According to the Ministry of Finance, the current account recorded a surplus of how much during the period of July 2025 to May 2026?
(a) 155 million dollars
(b) 255 million dollars
(c) 355 million dollars
(d) None of these
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]
#2087
Which of the following statements regarding the 2025 Cambridge examination leaks is INCORRECT?
(a) Three question papers were partially leaked across Pakistan.
(b) The leaked papers included AS/A Level Computer Science Paper 22.
(c) The leaks were limited exclusively to O Level subjects.
(d) CIE offered free November 2025 resits for impacted candidates.
Explanation: The 2025 leaks specifically impacted AS and A Level papers, including Mathematics and Computer Science, not O Level subjects. Therefore, the statement claiming the leaks were limited to O Level is false. [Source: https://www.dawn.com/news/1996140/amid-furore-on-social-media-cambridge-says-aware-of-reports-about-question-paper-leak, 29 Apr 2026]
#2088
Consider the following statements about the recent diplomatic tensions between Pakistan and India: 1. The Pakistani Foreign Office accused India of systemic discrimination against Christians and Muslims. 2. The Indian Ministry of External Affairs claimed that Pakistan's remarks were part of a broader regional peace initiative. 3. The Pakistani Foreign Office cited that 55 Muslims were lynched in India during 2025. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 is correct as the FO highlighted discrimination against these groups. Statement 3 is correct as it reflects the data provided in the FO statement. Statement 2 is incorrect because the Indian Ministry of External Affairs actually accused Pakistan of systemic victimization of minorities, not a peace initiative. [Source: https://www.dawn.com/news/1986308/exercise-in-deflection-masquerading-as-concern-fo-rejects-indias-comments-on-pakistans-shia-community, 28 Mar 2026]
#2089
The five reservists were initially charged in February 2025 for an incident that took place in which month of the previous year?
(a) July 2024
(b) May 2024
(c) September 2024
(d) December 2024
Explanation: The military reported that the abuse occurred in July 2024. The other months are incorrect distractors within the same calendar year. [Source: https://www.dawn.com/news/1981395/israel-drops-indictment-of-five-soldiers-accused-of-sexually-assaulting-palestinian-detainee, 12 Mar 2026]
#2090
Consider the following statements about the 2026 UN General Assembly vote on the High Commissioner for Human Rights: 1. The renewal of the mandate was approved with 144 votes in favor. 2. Russia proposed an alternative extension of the mandate until December 31, 2026. 3. The United States supported the procedural timeline proposed by the Secretary-General. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 is correct as the vote count was 144 in favor. Statement 2 is correct as Russia proposed a shorter extension until the end of 2026. Statement 3 is incorrect because the United States strongly opposed the procedural timeline, accusing the Secretary-General of rushing the process. [Source: https://www.dawn.com/news/2018302/volker-turks-term-as-un-human-rights-chief-extended-despite-us-warnings, 25 Jul 2026]
#2091
Consider the following statements about the recent Pakistan-Iran diplomatic engagements: 1. The two countries agreed to improve coordination to curb terrorism originating from the Afghan border. 2. The Main Line-3 (ML-3) project is expected to be completed by December 2029. 3. The 1959 bilateral railway agreement serves as a foundational framework for current rail cooperation. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: All three statements are factually accurate based on the official reports of the meetings held in July 2026. The ministers confirmed the border security concerns, the ML-3 timeline, and the reliance on the 1959 agreement. [Source: https://www.dawn.com/news/2017481/pakistan-ready-to-extend-cooperation-with-iran-in-all-fields-naqvi-tells-iranian-counterpart, 22 Jul 2026]
#2092
Consider the following statements about the water situation on the Chenab River as of 2026-07-24: 1. The rise in water levels is attributed to rainfall in the upper catchment areas. 2. The government has compared current water levels with historical data from 2017, 2022, 2023, and 2025. 3. The Chenab River has the capacity to generate extreme flooding independently without external rainfall. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statements 1 and 2 are correct as per the Commissioner's testimony. Statement 3 is incorrect because the Commissioner specifically noted that the river does not have the capacity to generate extreme flooding independently. [Source: https://www.brecorder.com/news/40431517/senate-panel-told-govt-unaware-of-indias-chenab-water-release, 24 Jul 2026]
#2093
Consider the following statements about the recent Pakistan-Iran diplomatic engagements: 1. The two countries agreed to improve coordination to curb terrorism originating from the Afghan border. 2. The Main Line-3 (ML-3) project is expected to be completed by December 2029. 3. The 1959 bilateral railway agreement serves as a foundational framework for current rail cooperation. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: All three statements are factually accurate based on the official reports of the meetings held in July 2026. The ministers confirmed the border security concerns, the ML-3 timeline, and the reliance on the 1959 agreement. [Source: https://www.dawn.com/news/2017481/pakistan-ready-to-extend-cooperation-with-iran-in-all-fields-naqvi-tells-iranian-counterpart, 22 Jul 2026]
#2094
Match List I (Economic Indicator/Metric) with List II (Status/Value as of May 2026 report): 1. Total disbursements under two arrangements — a. 16 billion dollars 2. Foreign exchange reserves (Dec 2025) — b. 1.32 billion dollars 3. Latest IMF financing approval — c. 4.8 billion dollars 4. Foreign exchange reserves (June 2025) — d. 14.5 billion dollars
(a) 1-c, 2-a, 3-b, 4-d
(b) 1-b, 2-a, 3-c, 4-d
(c) 1-c, 2-d, 3-b, 4-a
(d) 1-a, 2-c, 3-b, 4-d
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]
#2095
According to the IMF review of May 2026, what was the level of Pakistan's foreign exchange reserves at the end of December 2025?
(a) 16.0 billion dollars
(b) 14.5 billion dollars
(c) 18.2 billion dollars
(d) 20.5 billion dollars
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]
#2096
Consider the following statements about the US-Pakistan trade negotiations as of July 2026: 1. Pakistan successfully negotiated a reduction in the initial IEEPA-based tariff from 29 per cent to 19 per cent in 2025. 2. The temporary global tariff of 10 per cent imposed under Section 122 is scheduled to expire on July 24, 2026. 3. India is currently facing a lower proposed tariff under Section 301 than Pakistan. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 is correct regarding the 2025 tariff reduction. Statement 2 is correct as the Section 122 tariff has a 150-day statutory limit expiring on July 24, 2026. Statement 3 is incorrect because India faces a 12.5% tariff, which is higher than Pakistan's 10%. [Source: https://www.dawn.com/news/2016679/finance-minister-aurangzeb-arrives-in-us-on-3-day-visit-expected-to-hold-talks-on-trade-finance-investment, 19 Jul 2026]
#2097
Consider the following statements about development loans in Pakistan: 1. The markup rate for 2025-26 is lower than the rate charged in 2024-25. 2. The federal government charges markup on loans to provincial governments as a source of revenue. 3. Foreign re-lent loans are advanced by the federal government out of its own domestic resources. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: Statement 1 is correct as the rate dropped from 17.74 percent to 11.89 percent. Statement 2 is correct as markup on these loans is a key revenue stream. Statement 3 is incorrect because cash development loans are funded from domestic resources, while foreign re-lent loans are sourced from international lenders. [Source: https://www.dawn.com/news/2018194/centre-cuts-markup-on-uplift-loans-to-1189pc, 24 Jul 2026]
#2098
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?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
Explanation: 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]
#2099
Consider the following statements about the State Bank of India's capital raising activities: 1. The board approved raising up to 600 billion rupees through debt in the current financial year. 2. The bank's previous perpetual bond issuance occurred in November 2025. 3. The 2026 perpetual debt issuance is designed to be Basel III-compliant. Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All three
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]
#2100
What is the revised markup rate fixed by the federal government for development loans and advances for the fiscal year 2025-26?
(a) 10.30 percent
(b) 17.74 percent
(c) 11.89 percent
(d) 17.84 percent
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]