July 2025 Edition
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July 2025 Current Affairs MCQs & Solutions
Top national & international current affairs questions for CSS, PMS, FPSC, PPSC, and NTS screening tests.
#1961
Which of the following is NOT a component of the export-boosting schemes approved by the ECC on July 28, 2026?
(a) Enhanced Export Finance Scheme (E-EFS)
(b) Direct cash grants for industrial electricity bills
(c) Performance-based rebate on incremental exports
(d) Long-Term Export Growth Financing Facility (LTEGFF)
Explanation: The approved package includes E-EFS, LTEGFF, and a performance-based rebate scheme. Direct cash grants for electricity bills are not part of the three specific schemes mentioned in the ECC approval. [Source: https://www.dawn.com/news/2018926/ecc-okays-rs255bn-for-export-boosting-schemes, 28 Jul 2026]
#1962
Which of the following statements regarding the Australian market performance on July 27, 2026, is INCORRECT?
(a) The S&P/ASX 200 index rose to 8,851.30 points.
(b) Technology stocks jumped by 3.8%.
(c) Miners gained 2.1% during the session.
(d) The benchmark index fell by 0.9% on the previous Friday.
Explanation: The benchmark index fell by 0.8% on the previous Friday, not 0.9%. The other statements accurately reflect the market data from the session. [Source: https://www.brecorder.com/news/40431982/australian-shares-rise-nearly-1-as-middle-east-de-escalation-boosts-sentiment, 27 Jul 2026]
#1963
Which of the following statements regarding the impact of the July 2026 oil price decline on the US economy is INCORRECT?
(a) It guarantees an immediate interest rate cut by the Federal Reserve.
(b) It provides the Federal Reserve with greater policy flexibility.
(c) It is expected to ease inflationary pressures.
(d) It follows a period where Brent crude had surged to $102 per barrel.
Explanation: While the decline in oil prices provides policy flexibility, it does not guarantee an interest rate cut, as market expectations were leaning toward a status quo or a future hike. The other statements accurately reflect the economic context described. [Source: https://www.brecorder.com/news/40431972/indian-bonds-rebound-as-easing-middle-east-tensions-drag-oil-lower, 27 Jul 2026]
#1964
What is the total amount of subsidies approved by the Economic Coordination Committee (ECC) for export promotion schemes on July 28, 2026?
(a) Rs155 billion
(b) Rs455 billion
(c) Rs355 billion
(d) Rs255 billion
Explanation: The ECC approved Rs255 billion in subsidies to boost exports through three distinct incentive schemes. This funding is intended to address the stagnation of annual exports at the $30 billion mark. [Source: https://www.dawn.com/news/2018926/ecc-okays-rs255bn-for-export-boosting-schemes, 28 Jul 2026]
#1965
Consider the following statements about the market reaction on July 27, 2026: 1. Indian government bonds experienced a surge in yields due to rising oil prices. 2. The 10-year US Treasury yield eased to 4.64%. 3. Market participants assigned a 66% probability of a status quo in the upcoming Federal Reserve interest rate decision. 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 incorrect because Indian bond yields fell (rebounded) as oil prices decreased, not increased. Statements 2 and 3 are factually accurate according to the market data provided for the specified date. [Source: https://www.brecorder.com/news/40431972/indian-bonds-rebound-as-easing-middle-east-tensions-drag-oil-lower, 27 Jul 2026]
#1966
Who presided over the Economic Coordination Committee meeting held on July 27, 2026, where the export subsidy package was approved?
(a) Finance Minister
(b) Minister for Commerce
(c) Prime Minister
(d) Governor State Bank
Explanation: Finance Minister Muhammad Aurangzeb chaired the ECC meeting that approved the export-boosting schemes. The committee is a key executive body responsible for economic decision-making in Pakistan. [Source: https://www.dawn.com/news/2018926/ecc-okays-rs255bn-for-export-boosting-schemes, 28 Jul 2026]
#1967
Consider the following statements about the Australian market on July 27, 2026: 1. The S&P/NZX 50 index in New Zealand fell by 0.4%. 2. Financials rose to their highest level since April 22, 2026. 3. Markets have priced in a 50% chance of a rate hike at the next central bank meeting. 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 and 2 are correct. Statement 3 is incorrect because the market priced in nearly a 30% chance of a rate hike, not 50%. [Source: https://www.brecorder.com/news/40431982/australian-shares-rise-nearly-1-as-middle-east-de-escalation-boosts-sentiment, 27 Jul 2026]
#1968
What was the primary reason for the recent decline in Brent crude oil prices as of July 27, 2026?
(a) A global surplus in oil production
(b) A tentative truce between the US and Iran
(c) A significant drop in global industrial demand
(d) None of these
Explanation: Brent crude fell by more than 4% due to a tentative truce between the US and Iran, which halted a series of retaliatory attacks. This de-escalation reduced the geopolitical risk premium that had previously pushed oil prices above $100 per barrel. [Source: https://www.brecorder.com/news/40431973/copper-gains-on-mideast-de-escalation-oil-price-drop, 27 Jul 2026]
#1969
Consider the following statements about the global commodity market as of July 27, 2026: 1. High energy prices are generally associated with increased inflation expectations and higher interest rates. 2. Copper is considered a growth-dependent commodity that can be negatively impacted by high interest rates. 3. The US dollar index has a negligible impact on the pricing of commodities traded in the greenback. 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 they reflect standard economic relationships between energy costs, interest rates, and industrial demand. Statement 3 is incorrect because the US dollar index has a significant inverse relationship with commodity prices; a weaker dollar typically makes commodities cheaper for foreign buyers, thereby supporting prices. [Source: https://www.brecorder.com/news/40431973/copper-gains-on-mideast-de-escalation-oil-price-drop, 27 Jul 2026]
#1970
Which of the following factors is NOT cited as a reason for the market rally on July 27, 2026?
(a) An immediate reduction in the SBP policy rate
(b) A sharp decline in global oil prices
(c) Easing geopolitical tensions in the Middle East
(d) Improved investor sentiment following a pause in combat
Explanation: The SBP maintained the policy rate at 11.5 percent rather than reducing it. Therefore, an immediate reduction in the policy rate is an incorrect statement regarding the events of that day. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#1971
Which of the following companies was among the leading performers contributing to the PSX benchmark index rally on July 27, 2026?
(a) Engro Fertilizers
(b) Lucky Cement
(c) United Bank Limited
(d) None of these
Explanation: While UBL, FFC, ENGROH, MEBL, and LUCK were identified as leading contributors, the options provided (Engro Fertilizers, Lucky Cement, United Bank Limited) are individual entities. Since all three are correct, 'None of these' is the appropriate choice as it implies none of the single-option choices exclusively represent the list of top performers. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#1972
The KSE-100 index closed above which of the following thresholds on July 27, 2026?
(a) 168,000 points
(b) 198,000 points
(c) 188,000 points
(d) 178,000 points
Explanation: The KSE-100 index gained over 7,000 points to close at 178,262.33, successfully crossing the 178,000-point threshold. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#1973
On July 27, 2026, the State Bank of Pakistan maintained the policy rate at which of the following levels?
(a) 10.5 percent
(b) 12.5 percent
(c) 11.5 percent
(d) 13.5 percent
Explanation: The State Bank of Pakistan maintained the policy rate at 11.5 percent during the announcement on July 27, 2026. Analysts viewed this as a cautious stance given the prevailing regional geopolitical tensions. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#1974
Consider the following statements about the PSX performance on July 27, 2026: 1. The KSE-100 index gained more than 7,000 points during the session. 2. The market rally was partially attributed to the resumption of shipping through the Strait of Hormuz. 3. The index reached an intra-day peak of over 178,500 points. 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 market data from July 27, 2026. The index gained 7,241.13 points, investor sentiment improved due to hopes for shipping resumption, and the intra-day peak was 178,588.33 points. [Source: https://www.dawn.com/news/2018715/psx-opens-week-in-the-green-gains-more-than-7000-points-to-close-above-178000-mark, 27 Jul 2026]
#1975
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]
#1976
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]
#1977
All of the following are objectives or focus areas of the Finance Minister's visit to Washington in July 2026 EXCEPT:
(a) Discussing market access for Pakistani exports
(b) Exploring funding for infrastructure and energy projects
(c) Negotiating a broader economic partnership framework
(d) Finalizing a complete debt write-off for Pakistan
Explanation: The visit focused on trade, investment, and economic cooperation, including discussions on tariffs and project financing. There is no mention of a debt write-off, making it the incorrect statement among the options provided. [Source: https://www.dawn.com/news/2017217/us-technology-firm-proposes-refinery-modernisation-plan-for-pakistan-in-meeting-with-finance-minister, 21 Jul 2026]
#1978
Consider the following statements about the US-Canada trade situation as of July 2026: 1. The US President invoked Section 338 to retaliate against what the administration termed discriminatory trade practices. 2. The tariffs apply to a diverse range of goods including wine, cement, and ice hockey gear. 3. The US Trade Representative is currently holding bilateral talks regarding the USMCA with Canadian officials in Mexico City. 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 US Trade Representative is holding bilateral talks with Mexico, having pointedly left Canada out of those specific negotiations. [Source: https://www.dawn.com/news/2017209/us-imposes-new-50pc-tariffs-on-20bn-worth-of-canadian-products, 21 Jul 2026]
#1979
According to the Pakistan Cotton Ginners Association (PCGA) report for the 2026-27 season, what was the total volume of seed cotton arrivals by July 15, 2026?
(a) 527,900 bales
(b) 445,779 bales
(c) 297,751 bales
(d) 466,925 bales
Explanation: The PCGA report confirmed that total seed cotton arrivals reached 527,900 bales by July 15, 2026. The figure 297,751 represents the arrivals from the previous year, while 445,779 represents the volume purchased by textile mills. [Source: https://www.dawn.com/news/2016601/early-cotton-arrivals-hit-record-527900-bales, 19 Jul 2026]
#1980
What is the primary objective of the refinery modernization plan discussed by the Finance Minister in July 2026?
(a) To reduce reliance on imported petroleum products
(b) To increase the export of crude oil to the United States
(c) To privatize all state-owned oil marketing companies
(d) To establish a new pipeline network to Central Asia
Explanation: The modernization plan aims to enhance domestic refining capacity, which directly contributes to reducing the country's heavy reliance on imported petroleum products. This is a strategic move to improve energy security and stabilize the national economy. [Source: https://www.dawn.com/news/2017217/us-technology-firm-proposes-refinery-modernisation-plan-for-pakistan-in-meeting-with-finance-minister, 21 Jul 2026]