July 2026 Edition
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July 2026 Current Affairs MCQs & Solutions
Top national & international current affairs questions for CSS, PMS, FPSC, PPSC, and NTS screening tests.
#861
Which of the following statements regarding the economic performance in FY2026 is INCORRECT?
(a) The fiscal deficit narrowed to 0.7pc of GDP during July-March FY26.
(b) The primary surplus strengthened to 3.2pc of GDP.
(c) The GDP growth rate exceeded the government target of 4.2pc.
(d) The industrial sector expanded by 3.51pc.
Explanation: The GDP growth rate of 3.7 percent fell short of the 4.2 percent target, making statement D incorrect. The other three statements accurately reflect the fiscal and sectoral data provided in the survey. [Source: https://www.dawn.com/news/2006877/economy-grows-37pc-in-fy26-fastest-in-four-years-but-short-of-target, 11 Jun 2026]
#862
Which sector recorded a growth rate of 4.09pc in the fiscal year 2026?
(a) Services sector
(b) Industrial sector
(c) Agriculture sector
(d) Mining and quarrying sector
Explanation: The services sector recorded a growth of 4.09 percent during FY2026. The agriculture and industrial sectors recorded growth rates of 2.89 percent and 3.51 percent, respectively. [Source: https://www.dawn.com/news/2006877/economy-grows-37pc-in-fy26-fastest-in-four-years-but-short-of-target, 11 Jun 2026]
#863
Consider the following statements about the economic indicators of Pakistan in FY2026: 1. The GDP growth rate of 3.7pc is the highest recorded in the past four years. 2. The electricity, gas, and water supply industry experienced contraction during the fiscal year. 3. Large-scale manufacturing (LSM) recorded a decline of 6.1pc during the 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: Statement 1 is correct as 3.7 percent is the highest growth in four years. Statement 2 is correct because the electricity, gas, and water supply industry contracted due to subsidy declines. Statement 3 is incorrect because LSM actually saw a rebound of 6.1 percent, not a decline. [Source: https://www.dawn.com/news/2006877/economy-grows-37pc-in-fy26-fastest-in-four-years-but-short-of-target, 11 Jun 2026]
#864
Which international agencies provided rating upgrades that reinforced investor confidence in Pakistan during 2026?
(a) Moody's and Standard and Poor's
(b) Standard and Poor's and Fitch
(c) Fitch and Moody's
(d) World Bank and IMF
Explanation: The government's commitment to IMF programs was reinforced by specific rating upgrades from Fitch and Moody's, which helped improve the overall investment climate. [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]
#865
Consider the following statements about Pakistan's economic outlook for 2026: 1. The government expects inflationary pressures to ease due to the reopening of the Strait of Hormuz. 2. The size of the national economy reached 452.1 billion dollars by the end of the fiscal year. 3. The consumer price index (CPI) inflation for June 2026 was recorded at 15 percent. 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 factually correct based on the Ministry of Finance report. Statement 3 is incorrect because the ministry anticipated June inflation to remain within the range of 11-12 percent, not 15 percent. [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]
#866
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]
#867
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]
#868
What was the real GDP growth rate of Pakistan for the fiscal year ending in 2026?
(a) 2.7 percent
(b) 5.7 percent
(c) 4.7 percent
(d) 3.7 percent
Explanation: The Ministry of Finance reported that real GDP growth reached 3.7 percent, marking the highest growth rate in four years. This figure reflects the broad-based recovery across the agriculture, industry, and services sectors. [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]
#869
All of the following are cited as factors contributing to Pakistan's economic stability in 2026 EXCEPT:
(a) Record workers' remittances
(b) Increased reliance on foreign grants
(c) Expansion in large-scale manufacturing
(d) Continued growth in IT exports
Explanation: The government emphasizes fiscal discipline, remittances, and IT exports as drivers of stability. Reliance on foreign grants is not cited as a primary pillar of the current economic outlook. [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]
#870
What was the average daily borrowing by the government from banks during the fiscal year 2026?
(a) Rs5.9 trillion
(b) Rs500 billion
(c) Rs16.4 billion
(d) Rs8 trillion
Explanation: The government's daily borrowing through banks averaged Rs16.4 billion in FY26. The Rs500 billion figure represents the average monthly borrowing. [Source: https://www.dawn.com/news/2017153/govt-borrows-rs59tr-from-banks-in-fy26, 21 Jul 2026]
#871
Who presented the Punjab provincial budget for the fiscal year 2026-27 in the provincial assembly?
(a) Maryam Nawaz Sharif
(b) Mian Mujtabaur Rehman
(c) Ishaq Dar
(d) Bilawal Bhutto Zardari
Explanation: Mian Mujtabaur Rehman is the Finance Minister of Punjab who presented the budget. Maryam Nawaz Sharif is the Chief Minister who presided over the cabinet meeting that approved the budget. [Source: https://www.dawn.com/news/2008300/punjab-finance-minister-presents-people-friendly-budget-in-assembly, 16 Jun 2026]
#872
Which of the following statements regarding the fiscal situation in 2026 is INCORRECT?
(a) The government borrowed more in FY26 than it did in FY25.
(b) Debt servicing is projected to consume 50 percent of the total budget outlay in FY27.
(c) The government's borrowing from banks averaged Rs500 billion per month in FY26.
(d) The government allocated more funds to the PSDP than to debt servicing for FY27.
Explanation: The statement that the government allocated more to the PSDP than to debt servicing is incorrect, as debt servicing (Rs8 trillion) significantly exceeds the PSDP allocation (Rs1 trillion). [Source: https://www.dawn.com/news/2017153/govt-borrows-rs59tr-from-banks-in-fy26, 21 Jul 2026]
#873
Consider the following statements about the fiscal data released in 2026: 1. The government's borrowing from banks in FY26 was higher than in FY25. 2. Debt servicing costs are expected to consume half of the total budget outlay in FY27. 3. The corporate sector's investment in government papers is negligible compared to bank investments. 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 borrowing rose from Rs5.4 trillion to Rs5.9 trillion. Statement 2 is correct regarding the 50 percent budget consumption. Statement 3 is incorrect because the corporate sector accounts for a significant 25 percent of investment in government papers. [Source: https://www.dawn.com/news/2017153/govt-borrows-rs59tr-from-banks-in-fy26, 21 Jul 2026]
#874
What is the total volume of the Sindh provincial budget presented for the fiscal year 2026-27?
(a) Rs2.56 trillion
(b) Rs4.56 trillion
(c) Rs3.56 trillion
(d) Rs5.56 trillion
Explanation: The Sindh Chief Minister presented a budget of Rs3.56 trillion for the upcoming fiscal year. Other options represent incorrect figures that deviate from the official budgetary announcement. [Source: https://www.dawn.com/news/2008557/sindh-cm-murad-ali-shah-presents-rs356tr-budget-with-no-new-taxes-7pc-pay-raise, 17 Jun 2026]
#875
According to State Bank of Pakistan data, what was the total amount borrowed by the government from banks in the fiscal year 2026?
(a) Rs5.4 trillion
(b) Rs5.9 trillion
(c) Rs8.0 trillion
(d) None of these
Explanation: The government borrowed Rs5.9 trillion from banks in FY26. The figure Rs5.4 trillion represents the borrowing amount from the previous fiscal year, FY25. [Source: https://www.dawn.com/news/2017153/govt-borrows-rs59tr-from-banks-in-fy26, 21 Jul 2026]
#876
How much has been allocated for law and order in the Punjab budget for the fiscal year 2026-27?
(a) Rs152 billion
(b) Rs202 billion
(c) Rs252 billion
(d) Rs302 billion
Explanation: The government allocated Rs252 billion for law and order, which includes funding for police stations in riverine areas and crime scene units. Other options represent incorrect budgetary allocations. [Source: https://www.dawn.com/news/2008300/punjab-finance-minister-presents-people-friendly-budget-in-assembly, 16 Jun 2026]
#877
What is the total volume of the Punjab provincial budget for the fiscal year 2026-27?
(a) Rs5.9 trillion
(b) Rs4.9 trillion
(c) Rs6.9 trillion
(d) Rs7.9 trillion
Explanation: The provincial government officially proposed a budget of Rs5.9 trillion for the upcoming fiscal year. Other figures are incorrect distractors representing different potential fiscal scales. [Source: https://www.dawn.com/news/2008300/punjab-finance-minister-presents-people-friendly-budget-in-assembly, 16 Jun 2026]
#878
What is the proposed percentage increase in the salaries of government employees in the 2026-27 Punjab budget?
(a) 7 percent
(b) 5 percent
(c) 3.5 percent
(d) 10 percent
Explanation: The budget proposes a 7 percent increase in salaries for government employees. The 3.5 percent figure refers to the increase in pensions for retired employees. [Source: https://www.dawn.com/news/2008300/punjab-finance-minister-presents-people-friendly-budget-in-assembly, 16 Jun 2026]
#879
Which specific initiative in the 2026-27 Punjab budget includes the establishment of Neuro Cath Labs?
(a) Nawaz Sharif Medical District
(b) Cardiac Care Program
(c) Emergency Health Response
(d) Stroke Initiative
Explanation: The government set aside Rs1.75 billion for Neuro Cath Labs under the Stroke Initiative. The Nawaz Sharif Medical District is a separate health infrastructure project. [Source: https://www.dawn.com/news/2008300/punjab-finance-minister-presents-people-friendly-budget-in-assembly, 16 Jun 2026]
#880
Consider the following statements about the Punjab budget for the fiscal year 2026-27: 1. The budget includes the imposition of new taxes to cover the fiscal deficit. 2. The proposed allocation for education is 15 percent higher than the previous fiscal year. 3. The government has allocated funds for the construction of police stations in riverine areas. 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 the Chief Minister explicitly stated that the budget was prepared without imposing any new taxes. Statements 2 and 3 are factually accurate according to the budget speech. [Source: https://www.dawn.com/news/2008300/punjab-finance-minister-presents-people-friendly-budget-in-assembly, 16 Jun 2026]