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.
#2101
Consider the following statements about the Indian bond market and macroeconomic indicators as of July 24, 2026: 1. The 10-year U.S. Treasury yield reached its highest level since January 2025. 2. Brent crude prices briefly exceeded $100 per barrel for the first time in two months. 3. The probability of a Federal Reserve rate hike in September was estimated at 30%. 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. 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]
#2102
According to the Economic Survey 2025-26, what was the total wheat production in Pakistan for FY26?
(a) 28.40 million tonnes
(b) 29.61 million tonnes
(c) 31.20 million tonnes
(d) None of these
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]
#2103
The Diyat value for FY2026-27 represents an approximate percentage increase over the FY2025-26 value?
(a) 56 percent
(b) 75 percent
(c) 97 percent
(d) None of these
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]
#2104
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]
#2105
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]
#2106
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]
#2107
India's domestic defence production reached a record high of how much in the financial year ended March 2025?
(a) $10.09 billion
(b) $16.09 billion
(c) $12.09 billion
(d) $20.09 billion
Explanation: India's domestic defence production hit a record high of $16.09 billion in the financial year ending March 2025. This figure highlights the success of the government's push for local manufacturing. [Source: https://www.dawn.com/news/2003481/india-seeks-proposals-for-5th-generation-combat-jets-ani, 27 May 2026]
#2108
The 20 billion dollars worth of goods subject to the new tariffs represent approximately what percentage of total US imports from Canada in 2025?
(a) 5.2 percent
(b) 8.4 percent
(c) 12.1 percent
(d) 15.5 percent
Explanation: According to US Census Bureau data, the 20 billion dollars in affected goods accounts for roughly 5.2 percent of the 382 billion dollars in total imports from Canada during 2025. [Source: https://www.dawn.com/news/2017209/us-imposes-new-50pc-tariffs-on-20bn-worth-of-canadian-products, 21 Jul 2026]
#2109
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]
#2110
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]
#2111
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]
#2112
How many pilgrims performed Umrah in 2025 according to the Saudi General Authority for Statistics?
(a) 23 million
(b) 33 million
(c) 53 million
(d) 43 million
Explanation: Official statistics from the Saudi General Authority for Statistics recorded nearly 43 million pilgrims for the year 2025. This figure highlights the significant scale of religious tourism in the Kingdom. [Source: https://www.dawn.com/news/2017249/saudi-govt-launches-multiple-entry-umrah-visa-with-one-year-validity, 21 Jul 2026]
#2113
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]
#2114
Consider the following statements about the legal developments involving Bushra Bibi: 1. She was sentenced to 17 years in the Toshakhana 2 case in December 2025. 2. The £190 million corruption case involves the retrieval of laundered money from the United Kingdom. 3. The jail authorities reported that she was diagnosed with retinal detachment in her right eye. 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 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]
#2115
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]
#2116
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]
#2117
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]
#2118
Consider the following statements about the repatriation of Afghan nationals: 1. The government reported that over 1.1 million Afghan nationals were deported in 2025. 2. The current repatriation drive was first launched in 2023. 3. The directive requires daily reporting to the Ministry of Interior starting from July 10, 2026. 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 1,155,221 individuals were deported in 2025. Statement 2 is correct as the drive began in 2023. Statement 3 is incorrect because the daily reporting requirement commences on July 11, 2026, not July 10. [Source: https://www.dawn.com/news/2011435/interior-ministry-issues-directive-to-arrest-afghan-nationals-without-valid-visas-from-july-10, 28 Jun 2026]
#2119
Consider the following statements about the airspace restrictions between Pakistan and India: 1. The airspace closure was initially implemented in response to tensions following an attack in Pahalgam. 2. Pakistan has offered a neutral probe into the allegations regarding the 2025 incident. 3. The airspace ban has been extended only once since its inception in 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: Statements 1 and 2 are factually correct regarding the origin of the tensions and Pakistan's diplomatic stance. Statement 3 is incorrect because the ban has been extended multiple times since 2025. [Source: https://www.dawn.com/news/2016474/paa-extends-airspace-ban-on-indian-aircraft-until-aug-23, 18 Jul 2026]
#2120
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]