July 2026 Current Affairs MCQs & Solutions

Explanation: The IMF mission held discussions with Pakistani authorities in Karachi and Islamabad before moving to virtual meetings on March 3, 2026. Lahore was not a primary site for these specific mission meetings. [Source: https://www.dawn.com/news/1981220/imf-mission-fails-to-reach-staff-level-agreement-with-pakistan-talks-to-continue, 12 Mar 2026]

Explanation: Statement 1 is correct as cabinet members and technocrats are divided over the prime minister's directive. Statement 3 is correct as ministers defended previous hikes by referencing supply disruptions in neighboring countries. Statement 2 is incorrect because the Dubai-based pricing ($135/barrel) is currently higher than the Brent benchmark ($105/barrel). [Source: https://www.dawn.com/news/1981355/govt-mulling-not-hiking-prices-of-petroleum-products-further-despite-increase-in-global-market, 12 Mar 2026]

Explanation: The mission was specifically tasked with the third review of the $7 billion Extended Fund Facility (EFF) and the second review of the Resilience and Sustainability Facility (RSF). The SBA is a separate, distinct type of IMF arrangement. [Source: https://www.dawn.com/news/1981220/imf-mission-fails-to-reach-staff-level-agreement-with-pakistan-talks-to-continue, 12 Mar 2026]

Explanation: The statement regarding LNG imports is incorrect because Qatar declared force majeure on its processing facilities, leading to a suspension of LNG imports, not an increase. The other statements accurately reflect the government's current policy stance. [Source: https://www.dawn.com/news/1981355/govt-mulling-not-hiking-prices-of-petroleum-products-further-despite-increase-in-global-market, 12 Mar 2026]

Explanation: The government set the price of high-speed diesel at Rs383.46 per litre following the recent adjustment. Rs335.18 is the current price for petrol, while Rs520.35 represents a historical peak price for diesel. [Source: https://www.dawn.com/news/2018328/govt-keeps-petrol-diesel-prices-unchanged-for-two-days, 25 Jul 2026]

Explanation: The IMF indicated that Pakistan would be eligible for around $200 million under the RSF upon the successful conclusion of the review. The $760 million figure refers to the Special Drawing Rights (SDR) equivalent for the EFF portion. [Source: https://www.dawn.com/news/1981220/imf-mission-fails-to-reach-staff-level-agreement-with-pakistan-talks-to-continue, 12 Mar 2026]

Explanation: Iva Petrova headed the IMF mission that conducted the review discussions with Pakistan in early 2026. Nathan Porter is a former mission chief, and Kristalina Georgieva is the Managing Director of the IMF. [Source: https://www.dawn.com/news/1981220/imf-mission-fails-to-reach-staff-level-agreement-with-pakistan-talks-to-continue, 12 Mar 2026]

Explanation: The government is finalizing legislation to meet structural benchmarks required for the successful conclusion of the IMF's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews. The World Bank and ADB are development partners, but the specific structural benchmark compliance mentioned is tied to the IMF. [Source: https://www.dawn.com/news/1980722/govt-to-table-soe-bills-for-imf-compliance, 11 Mar 2026]

Explanation: Flightradar24 reported the airspace chaos in the Middle East, noting that planes were held in a pattern near Dubai as a precautionary measure against potential missile activity. [Source: https://www.dawn.com/news/1980748/airlines-raise-ticket-prices-as-middle-east-conflict-drives-up-fuel-costs, 11 Mar 2026]

Explanation: The deal is a strategic investment and hardware supply agreement; it does not grant AMD a majority ownership stake in Anthropic. The other three statements accurately reflect the terms reported in the agreement. [Source: https://www.dawn.com/news/2017572/amd-to-sell-anthropic-tens-of-billions-in-ai-servers-invest-up-to-5bn-in-startup, 22 Jul 2026]

Explanation: The government notification issued on July 22, 2026, explicitly states that a 7 percent Ad hoc Relief Allowance-2026 was granted to federal civil employees. This allowance is calculated based on the running basic pay under the new BPS-2026 structure. [Source: https://www.brecorder.com/news/40431195/salary-increase-notified-govt-issues-revised-bps-2026-for-civil-servants, 22 Jul 2026]

Explanation: AMD announced an investment of up to $5 billion in Anthropic, tied to the achievement of specific deployment milestones. The $30 billion figure refers to separate reported talks involving Nvidia and OpenAI. [Source: https://www.dawn.com/news/2017572/amd-to-sell-anthropic-tens-of-billions-in-ai-servers-invest-up-to-5bn-in-startup, 22 Jul 2026]

Explanation: Scott Bessent is the US Treasury Secretary who held discussions with Finance Minister Muhammad Aurangzeb regarding Pakistan's economic reforms. Janet Yellen is a former Treasury Secretary, making her an incorrect choice. [Source: https://www.dawn.com/news/2017582/us-treasury-secretary-welcomes-pakistans-economic-reforms-return-to-capital-markets, 22 Jul 2026]

Explanation: Anthropic has committed to purchasing two gigawatts of AMD's latest-generation Instinct MI450 chips. The MI300 is an older architecture, and the MI500 is not the model specified in the agreement. [Source: https://www.dawn.com/news/2017572/amd-to-sell-anthropic-tens-of-billions-in-ai-servers-invest-up-to-5bn-in-startup, 22 Jul 2026]

Explanation: The notification explicitly states that the new allowance will not count towards pension, gratuity, or house rent calculations. Therefore, the statement claiming it counts towards these benefits is incorrect. [Source: https://www.brecorder.com/news/40431195/salary-increase-notified-govt-issues-revised-bps-2026-for-civil-servants, 22 Jul 2026]

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]

Explanation: Statement 1 is incorrect because the US Treasury statement did not address or approve the $10 billion request. Statements 2 and 3 accurately reflect the official positions stated during the visit. [Source: https://www.dawn.com/news/2017582/us-treasury-secretary-welcomes-pakistans-economic-reforms-return-to-capital-markets, 22 Jul 2026]

Explanation: The Chief Minister specifically ordered the drainage of rainwater from streets, markets, roads, and underpasses to ensure public safety and traffic flow. Underpasses are particularly vulnerable to flooding during heavy monsoon spells. [Source: https://www.brecorder.com/news/40431317/cm-voices-her-grief-over-rain-related-deaths, 23 Jul 2026]

Explanation: The government notification issued on July 22, 2026, set the new price of high-speed diesel at Rs375.04 per litre. Rs327.12 is the corresponding price for petrol, while the other figures represent historical peak prices. [Source: https://www.dawn.com/news/2017573/govt-increases-petrol-price-by-rs639-diesel-by-rs783-per-litre, 22 Jul 2026]

Explanation: Statement 1 is incorrect because the mission failed to reach a staff-level agreement by the conclusion date. Statements 2 and 3 are correct as they accurately reflect the scope of the review and the external factors influencing the economic outlook. [Source: https://www.dawn.com/news/1981220/imf-mission-fails-to-reach-staff-level-agreement-with-pakistan-talks-to-continue, 12 Mar 2026]