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#1
By Kalsoom Tahir
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Medium
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Fact Checked
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02 Feb 2026
What is the primary adverse macroeconomic impact of Pakistan’s power sector circular debt?
💡 Explanation:The circular debt is a financial shortfall that arises from non-payment along the energy supply chain (consumers to distribution companies to power producers to fuel suppliers). The government is ultimately forced to cover the gap through subsidies, capacity payments, or debt servicing (e.g., through PHPL loans and bonds). This unbudgeted public spending and financial commitment directly adds to the government's expenditure, significantly increasing the national fiscal deficit.
#2
By Rabia Anum
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Hard
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Fact Checked
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21 Jan 2026
What is the largest weighted factor for horizontal distribution of the Divisible Pool under the 7th NFC Award?
💡 Explanation:The 7th National Finance Commission (NFC) Award (2010) introduced a Multiple-Criteria Formula for horizontal resource distribution among Pakistan's provinces. The factor with the highest weight is Population, accounting for 82% of the distribution. The other factors are Poverty/Backwardness (10.3%), Revenue Collection/Generation (5%), and Inverse Population Density (2.7%).
#3
By Ahmed Akber
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Hard
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Fact Checked
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19 Jan 2026
Reliance on regressive indirect taxes, a feature of Pakistan’s tax structure, primarily leads to which economic outcome?
💡 Explanation:Indirect taxes (such as Sales Tax and Federal Excise Duty) are regressive because they are applied uniformly, regardless of the taxpayer's income. This disproportionately affects lower-income groups, as the tax consumes a larger percentage of their limited disposable income, thereby exacerbating income and wealth inequality.
#4
By Ahmed Akber
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Hard
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Fact Checked
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10 Dec 2025
The provincial share in the NFC Award’s divisible pool is protected from reduction by which constitutional clause?
💡 Explanation:Article 160 of the Constitution of Pakistan establishes the National Finance Commission (NFC) to distribute revenues between the Federal Government and the provinces. The 18th Constitutional Amendment inserted clause (3A) into Article 160, which states that "the share of the provinces in each Award of the National Finance Commission shall not be less than the share given to the provinces in the previous Award." This constitutional bar makes the provincial share irreversible and is a key feature of fiscal federalism in Pakistan.
#5
By Ahmed Akber
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Medium
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13 Nov 2025
Which region provides the majority of Pakistan’s foreign remittances?
💡 Explanation:The Gulf Cooperation Council (GCC) countries are the largest source of remittances for Pakistan.
#6
By Kalsoom Tahir
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Medium
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02 Nov 2025
What is Pakistan’s largest source of primary energy supply?
💡 Explanation:Natural gas has historically been the largest source of primary energy in Pakistan for heating and industry.
#7
By Ahmed Akber
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Easy
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30 Oct 2025
Which institution serves as the central bank of Pakistan?
💡 Explanation:The State Bank of Pakistan (SBP) regulates monetary policy and the banking sector.
#8
By Kalsoom Tahir
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Medium
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Fact Checked
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23 Oct 2025
Which crop is Pakistan’s largest by production volume?
💡 Explanation:Wheat is the staple food of Pakistan and is the largest crop grown by volume and area.
#9
By Ahmed Akber
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Easy
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Fact Checked
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23 Oct 2025
Which sector is Pakistan’s largest export earner?
💡 Explanation:The textile industry is the backbone of Pakistan's economy, contributing the most to exports.
#10
By Kalsoom Tahir
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Medium
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Fact Checked
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22 Oct 2025
Which institution is Pakistan’s most frequent lender for balance of payments support?
💡 Explanation:Pakistan frequently turns to the IMF for short-term loans to stabilize its economy and balance of payments.
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