January 2026 Edition
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January 2026 Current Affairs MCQs & Solutions
Top national & international current affairs questions for CSS, PMS, FPSC, PPSC, and NTS screening tests.
#961
According to the IMF requirements mentioned in the June 2026 discussions, what is the approximate additional revenue target set for the federal government?
(a) Rs 500 billion
(b) Rs 430 billion
(c) Rs 350 billion
(d) Rs 600 billion
Explanation: The IMF requested the federal government to introduce at least Rs 430 billion in additional budgetary measures. A matching target of Rs 430 billion was also set for the provinces. [Source: https://www.dawn.com/news/2005897/ppp-shares-tax-related-reservations-in-pre-budget-meeting-with-dar-say-sources, 07 Jun 2026]
#962
The budget for the fiscal year 2026-27 was scheduled to be announced on which date?
(a) June 7, 2026
(b) June 8, 2026
(c) June 12, 2026
(d) June 10, 2026
Explanation: The federal budget for FY2026-27 was officially scheduled for announcement on Wednesday, June 10, 2026. This date followed the final rounds of pre-budget negotiations between the coalition partners. [Source: https://www.dawn.com/news/2005897/ppp-shares-tax-related-reservations-in-pre-budget-meeting-with-dar-say-sources, 07 Jun 2026]
#963
Consider the following statements about Pakistan's economic situation as of March 2026: 1. The total remittance inflow for the first eight months of FY26 was 26.5 billion dollars. 2. Saudi Aramco has reportedly reduced its oil production to about half capacity due to the Strait of Hormuz blockage. 3. The government expects to receive 50 billion dollars in total remittances during the full fiscal year 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: Statements 1 and 2 are factually accurate based on the report. Statement 3 is incorrect because the expected total for FY26 is 40 billion dollars, not 50 billion. [Source: https://www.dawn.com/news/1980726/remittances-steady-but-war-risks-loom, 11 Mar 2026]
#964
Which of the following statements regarding the automotive sector performance in February 2026 is INCORRECT?
(a) Truck and bus sales surged by 37 percent year-on-year.
(b) Honda Atlas Cars Ltd sales increased by 57 percent month-on-month.
(c) Hyundai Nishat Motors recorded a year-on-year decline in sales.
(d) Pak Suzuki Motor Company recorded a 53 percent year-on-year increase.
Explanation: Honda Atlas Cars Ltd sales actually fell by 42 percent month-on-month in February 2026, not increased. The other three statements are factually accurate according to the reported data. [Source: https://www.dawn.com/news/1980724/auto-sales-rise-43pc-in-july-february, 11 Mar 2026]
#965
What was the percentage increase in cumulative sales of cars, SUVs, pickups, and vans during the first eight months of the 2026 fiscal year (8MFY26)?
(a) 31 percent
(b) 59 percent
(c) 43 percent
(d) 90 percent
Explanation: Cumulative sales for the 8MFY26 period reached 128,498 units, representing a 43 percent increase over the 89,770 units sold in the same period of the previous fiscal year. Other figures, such as 59 percent, refer to specific company-level growth for Indus Motor Company rather than the total sector aggregate. [Source: https://www.dawn.com/news/1980724/auto-sales-rise-43pc-in-july-february, 11 Mar 2026]
#966
Consider the following statements about the automotive sector in 8MFY26: 1. The sharp month-on-month decline in February 2026 sales was partly attributed to a high base effect from January. 2. Lower interest rates and easing inflation were cited as key drivers for year-on-year growth. 3. Tractor sales experienced a significant year-on-year growth of 43 percent during the 8MFY26 period. 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 the market analysis provided by industry experts. Statement 3 is incorrect because tractor sales actually plunged by 21 percent year-on-year, not grew by 43 percent. [Source: https://www.dawn.com/news/1980724/auto-sales-rise-43pc-in-july-february, 11 Mar 2026]
#967
The total sales volume of two- and three-wheelers in Pakistan reached which level during the first eight months of the 2026 fiscal year?
(a) 1.1 million units
(b) 1.3 million units
(c) 1.5 million units
(d) None of these
Explanation: Two- and three-wheeler sales reached 1.3 million units in 8MFY26, marking a 31 percent rise year-on-year. None of these is incorrect because 1.3 million is the explicitly stated figure. [Source: https://www.dawn.com/news/1980724/auto-sales-rise-43pc-in-july-february, 11 Mar 2026]
#968
The reduction in the markup rate for development loans in 2026 is primarily attributed to the decline in which of the following?
(a) The federal budget deficit
(b) The central bank's policy rate
(c) The inflation rate of food commodities
(d) None of these
Explanation: The markup rate adjustment is directly linked to the decline in the State Bank of Pakistan's policy rate, which fell from a peak of 22 percent to 11.5 percent. This reduction lowers the government's cost of borrowing and subsequently the rates charged on development advances. [Source: https://www.dawn.com/news/2018194/centre-cuts-markup-on-uplift-loans-to-1189pc, 24 Jul 2026]
#969
What is the total projected external debt servicing for Pakistan in the fiscal year 2026-27?
(a) $21.5 billion
(b) $18.0 billion
(c) $26.5 billion
(d) $44.0 billion
Explanation: The SBP Governor announced that the total external debt servicing for FY27 is projected at $21.5 billion. This is a decrease from the $26.5 billion paid in the previous fiscal year. [Source: https://www.brecorder.com/news/40432030/pakistans-fy27-external-debt-servicing-projected-at-215bn-sbp-governor, 27 Jul 2026]
#970
Which of the following statements regarding the market performance on July 27, 2026, is INCORRECT?
(a) The Pakistani Rupee appreciated against the Euro in the open market.
(b) The US Dollar weakened against major peers like the Yen and the Euro.
(c) The Pakistani Rupee gained marginally against the US Dollar in the inter-bank market.
(d) Brent crude futures experienced a decline in price.
Explanation: In the open market, the Pakistani Rupee actually lost value against the Euro, closing at 319.79 for buying and 322.67 for selling. Therefore, the statement claiming appreciation is false. [Source: https://www.brecorder.com/news/40431965/pakistani-rupee-registers-gain-against-us-dollar, 27 Jul 2026]
#971
Consider the following statements about the economic indicators on July 27, 2026: 1. The Pakistani Rupee recorded a gain of Re0.01 against the US Dollar in the inter-bank market. 2. The State Bank of Pakistan increased the policy rate to 12.5%. 3. Brent crude futures fell by approximately 6% during the session. 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 Rupee gained Re0.01. Statement 2 is incorrect because the policy rate was maintained at 11.5%, not increased. Statement 3 is correct as Brent crude fell by about 6% to $90.93. [Source: https://www.brecorder.com/news/40431965/pakistani-rupee-registers-gain-against-us-dollar, 27 Jul 2026]
#972
Consider the following statements about Pakistan's external debt management for FY27: 1. The total external debt servicing requirement is lower than that of FY26. 2. Approximately $10-11 billion of the principal debt is expected to be rolled over or refinanced. 3. The SBP Governor reported that $6 billion of the total debt servicing was already settled by the end of July 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: All three statements are factually accurate based on the SBP Governor's briefing. The total debt servicing decreased from $26.5 billion in FY26 to $21.5 billion in FY27, with $6 billion already settled in July 2026. [Source: https://www.brecorder.com/news/40432030/pakistans-fy27-external-debt-servicing-projected-at-215bn-sbp-governor, 27 Jul 2026]
#973
What is the notified value of Diyat (blood money) for the fiscal year 2026-27?
(a) Rs6,757,902
(b) Rs9,828,670
(c) Rs19,352,390
(d) None of these
Explanation: The federal government set the Diyat value at Rs19,352,390 for FY2026-27. The other figures represent values from previous fiscal years. [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]
#974
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]
#975
By what percentage did Pakistan's trade deficit with the Middle East narrow in fiscal year 2026?
(a) 4.48 percent
(b) 7.37 percent
(c) 2.00 percent
(d) 4.00 percent
Explanation: The trade deficit with the Middle East narrowed by 4.48 percent to $13.32 billion in FY26. The 7.37 percent figure refers to the widening of the deficit observed in the previous fiscal year. [Source: https://www.dawn.com/news/2018925/pakistans-exports-to-middle-east-dip-in-fy26, 28 Jul 2026]
#976
What is the proposed allocation for the Benazir Income Support Programme (BISP) in the 2026-27 budget?
(a) Rs71 billion
(b) Rs8,045 billion
(c) Rs15,264 billion
(d) Rs838 billion
Explanation: The BISP budget was increased by 17 percent to reach Rs838 billion, aiming to expand coverage to 12 million families. Rs71 billion is the allocation for the Apna Ghar housing scheme. [Source: https://www.dawn.com/news/2007283/govt-unveils-rs188tr-budget-for-fy2026-27-gdp-growth-targeted-at-4pc, 12 Jun 2026]
#977
The government has set the GDP growth target for the fiscal year 2026-27 at:
(a) 3.6 percent
(b) 4.0 percent
(c) 8.2 percent
(d) None of these
Explanation: The government has officially targeted a GDP growth rate of 4 percent for the fiscal year 2026-27. While 3.6 percent is the fiscal deficit target and 8.2 percent is the inflation projection, 4 percent is the specific growth target. [Source: https://www.dawn.com/news/2007283/govt-unveils-rs188tr-budget-for-fy2026-27-gdp-growth-targeted-at-4pc, 12 Jun 2026]
#978
What is the total budgetary outlay for the fiscal year 2026-27 as presented by the Finance Minister?
(a) Rs15.2 trillion
(b) Rs12.9 trillion
(c) Rs18.8 trillion
(d) Rs20.5 trillion
Explanation: The federal budget for FY2026-27 was announced with a total outlay of Rs18.8 trillion. This figure represents the government's primary fiscal plan for the upcoming year. [Source: https://www.dawn.com/news/2007283/govt-unveils-rs188tr-budget-for-fy2026-27-gdp-growth-targeted-at-4pc, 12 Jun 2026]
#979
Consider the following statements about the 2026-27 federal budget: 1. The budget includes a flagship $1 billion initiative for the National Artificial Intelligence Ecosystem Development Programme. 2. The Final Tax Regime for IT and freelance exporters has been extended until FY30. 3. The federal government has allocated Rs8,045 billion specifically for markup payments. 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 correct based on the budget speech. The AI initiative is a $1 billion flagship project, the IT tax regime extension is set for three years until FY30, and the markup payment allocation is confirmed at Rs8,045 billion. [Source: https://www.dawn.com/news/2007283/govt-unveils-rs188tr-budget-for-fy2026-27-gdp-growth-targeted-at-4pc, 12 Jun 2026]
#980
Which of the following statements regarding the 2026-27 budget is INCORRECT?
(a) The average inflation is projected at 8.2 percent.
(b) The government has proposed a 15 percent increase in the salaries and pensions of government employees.
(c) Taxes on sanitary pads and contraceptives have been completely withdrawn.
(d) The fiscal deficit is targeted to be contained at 3.6 percent of GDP.
Explanation: The budget proposed a 7 percent raise in salaries and pensions for government employees, not 15 percent. The other statements accurately reflect the fiscal projections and policy changes announced in the budget. [Source: https://www.dawn.com/news/2007283/govt-unveils-rs188tr-budget-for-fy2026-27-gdp-growth-targeted-at-4pc, 12 Jun 2026]