FIA Test Preparation Lecture #12
Pakistan Economy, Agriculture, Industry, GDP, Inflation, Budget, Infrastructure & Sports
Top MCQs with Proper Lecture Notes
1. Overview of Pakistan Economy
Pakistan is a developing economy. Its major sectors are:
| Sector | Examples |
|---|---|
| Agriculture | Crops, livestock, fisheries |
| Industry | Textile, cement, sugar, fertilizer |
| Services | Banking, transport, IT, education |
| Infrastructure | Roads, dams, ports, railways |
Pakistan’s real GDP growth for FY2024-25 was reported around 2.68%, while agriculture grew only 0.56% and industry around 4.77%. Inflation increased again in April 2026, with CPI inflation at 10.89% year-on-year.
2. Agriculture
Agriculture is important because it provides food, employment, raw material for industry, and exports.
Main Crops of Pakistan
| Crop | Importance |
|---|---|
| Wheat | Major food crop |
| Rice | Major export crop |
| Cotton | Raw material for textile industry |
| Sugarcane | Used in sugar industry |
| Maize | Food and animal feed |
Livestock is also a major part of agriculture. In FY2024-25, livestock helped agriculture sector growth, while major crops declined due to weather and production challenges.
MCQs: Agriculture
1. Pakistan’s economy is mainly classified as:
A) Developed economy
B) Developing economy
C) Only industrial economy
D) Only oil economy
Answer: B) Developing economy
2. Which sector provides raw material to the textile industry?
A) Agriculture
B) Banking
C) Tourism
D) Mining only
Answer: A) Agriculture
3. Cotton is mainly used in:
A) Textile industry
B) Cement industry
C) Steel industry
D) Oil refining
Answer: A) Textile industry
4. Wheat is mainly a:
A) Cash crop
B) Food crop
C) Mineral
D) Fuel
Answer: B) Food crop
5. Rice is important for Pakistan because it is:
A) Export crop
B) Only imported crop
C) Metal crop
D) Industrial machine
Answer: A) Export crop
6. Sugarcane is used in:
A) Sugar industry
B) Textile industry
C) Steel industry
D) Cement industry
Answer: A) Sugar industry
7. Livestock includes:
A) Animals and dairy production
B) Only machines
C) Only roads
D) Only minerals
Answer: A) Animals and dairy production
8. Agriculture contributes to economy through:
A) Food supply
B) Employment
C) Raw material
D) All of these
Answer: D) All of these
3. Industry
Industry means production of goods in factories. Pakistan’s major industries include textile, cement, sugar, fertilizer, sports goods, surgical goods, and food processing.
Important Industries
| Industry | City/Area Famous For |
|---|---|
| Textile | Faisalabad, Karachi |
| Sports goods | Sialkot |
| Surgical instruments | Sialkot |
| Cement | Punjab, KP, Balochistan |
| Sugar | Punjab and Sindh |
| IT services | Lahore, Karachi, Islamabad |
MCQs: Industry
9. Pakistan’s largest manufacturing industry is generally:
A) Textile
B) Gold
C) Automobiles only
D) Shipbuilding only
Answer: A) Textile
10. Faisalabad is famous for:
A) Textile industry
B) Sea port
C) Coal mines only
D) Fishing only
Answer: A) Textile industry
11. Sialkot is famous for:
A) Sports goods and surgical instruments
B) Oil wells
C) Shipbuilding
D) Tea gardens
Answer: A) Sports goods and surgical instruments
12. Cement industry is linked with:
A) Construction
B) Education only
C) Agriculture only
D) Banking only
Answer: A) Construction
13. Fertilizer industry supports:
A) Agriculture
B) Judiciary
C) Tourism
D) Sports only
Answer: A) Agriculture
14. Sugar industry depends mainly on:
A) Sugarcane
B) Cotton
C) Rice
D) Wheat
Answer: A) Sugarcane
15. IT sector belongs mainly to:
A) Services sector
B) Agriculture only
C) Mining only
D) Fishing only
Answer: A) Services sector
4. GDP, Inflation and Budget
GDP
GDP means Gross Domestic Product. It is the total value of goods and services produced in a country during a specific period.
Inflation
Inflation means general increase in prices. When inflation rises, purchasing power decreases.
Budget
A budget is the government’s plan of income and expenditure for one financial year.
MCQs: GDP, Inflation and Budget
16. GDP stands for:
A) Gross Domestic Product
B) General Development Plan
C) Global Domestic Policy
D) Government Data Program
Answer: A) Gross Domestic Product
17. GDP measures:
A) Total value of goods and services
B) Only population
C) Only imports
D) Only exports
Answer: A) Total value of goods and services
18. Inflation means:
A) Decrease in prices
B) Increase in general price level
C) Increase in rainfall
D) Decrease in population
Answer: B) Increase in general price level
19. High inflation reduces:
A) Purchasing power
B) Prices only
C) Exports only
D) Land area
Answer: A) Purchasing power
20. CPI stands for:
A) Consumer Price Index
B) Central Planning Institute
C) Cash Payment Indicator
D) Cost Production Index
Answer: A) Consumer Price Index
21. Pakistan’s CPI inflation in April 2026 was reported as:
A) 1.89%
B) 5.89%
C) 10.89%
D) 20.89%
Answer: C) 10.89%
22. Pakistan’s real GDP growth for FY2024-25 was around:
A) 0.68%
B) 2.68%
C) 6.68%
D) 12.68%
Answer: B) 2.68%
23. Budget is prepared for:
A) One financial year
B) One day
C) One week
D) Ten years only
Answer: A) One financial year
24. Budget deficit means:
A) Revenue is more than expenditure
B) Expenditure is more than revenue
C) No expenditure
D) No taxes
Answer: B) Expenditure is more than revenue
25. Tax is a source of:
A) Government revenue
B) Private entertainment
C) Weather report
D) Sports ranking
Answer: A) Government revenue
5. Major Infrastructure of Pakistan
Infrastructure means basic physical facilities needed for economic growth, such as roads, railways, dams, ports, airports, power plants, and water projects.
Important Infrastructure
| Project/Place | Importance |
|---|---|
| CPEC | Connectivity, energy, infrastructure |
| Gwadar Port | Deep sea port |
| Motorways | Road connectivity |
| ML-1 Railway | Railway upgradation project |
| Diamer-Bhasha Dam | Water storage and hydropower |
| Mohmand Dam | Water and hydropower |
| Dasu Hydropower Project | Electricity generation |
| K-IV Project | Water supply for Karachi |
The Planning Commission reviewed major water-sector projects under PSDP 2025-26, including Dasu, Diamer-Bhasha, Mohmand Dam, Chashma Right Bank Canal, Tarbela 5th Extension, and K-IV.
MCQs: Infrastructure
26. CPEC stands for:
A) China Pakistan Economic Corridor
B) Central Pakistan Energy Council
C) China Punjab Export Committee
D) Common Public Economic Code
Answer: A) China Pakistan Economic Corridor
27. Gwadar Port is located in:
A) Punjab
B) Sindh
C) Balochistan
D) KP
Answer: C) Balochistan
28. ML-1 project is related to:
A) Railway upgradation
B) Agriculture tax
C) Sports stadium
D) School education only
Answer: A) Railway upgradation
29. Dams are mainly built for:
A) Water storage and power generation
B) Cricket only
C) Internet only
D) Shopping only
Answer: A) Water storage and power generation
30. Diamer-Bhasha Dam is linked with:
A) Water storage and hydropower
B) Textile exports
C) Football production
D) Banking services
Answer: A) Water storage and hydropower
31. K-IV project is related to:
A) Karachi water supply
B) Lahore metro only
C) Cotton production
D) Sports goods
Answer: A) Karachi water supply
32. Motorways are important for:
A) Transport and trade
B) Reducing education
C) Stopping agriculture
D) Decreasing communication
Answer: A) Transport and trade
33. Ports are important because they support:
A) International trade
B) Classroom teaching only
C) Local games only
D) Forest cutting
Answer: A) International trade
6. Sports in Pakistan
Sports are also part of general knowledge. Pakistan is famous for cricket, hockey, squash, snooker, football manufacturing, and athletics.
Important Sports Facts
| Sport | Important Point |
|---|---|
| Hockey | National game of Pakistan |
| Cricket | Most popular sport |
| Squash | Jahangir Khan and Jansher Khan |
| Sports goods | Sialkot is famous |
| Olympics | Pakistan has won medals mainly in hockey |
MCQs: Sports
34. National game of Pakistan is:
A) Cricket
B) Hockey
C) Football
D) Squash
Answer: B) Hockey
35. Most popular sport in Pakistan is:
A) Cricket
B) Baseball
C) Ice hockey
D) Rugby
Answer: A) Cricket
36. Sialkot is famous for manufacturing:
A) Sports goods
B) Tea
C) Oil
D) Gold
Answer: A) Sports goods
37. Jahangir Khan is associated with:
A) Squash
B) Cricket
C) Hockey
D) Football
Answer: A) Squash
38. Jansher Khan is famous in:
A) Tennis
B) Squash
C) Swimming
D) Boxing
Answer: B) Squash
39. Pakistan won the Cricket World Cup in:
A) 1987
B) 1992
C) 1996
D) 2003
Answer: B) 1992
40. Pakistan’s first Olympic gold medal came in:
A) Hockey
B) Cricket
C) Squash
D) Football
Answer: A) Hockey
7. Mixed Important MCQs
41. Services sector includes:
A) Banking and transport
B) Wheat only
C) Cotton only
D) Sugarcane only
Answer: A) Banking and transport
42. Export means:
A) Selling goods to other countries
B) Buying goods from other countries
C) Local farming
D) Tax collection only
Answer: A) Selling goods to other countries
43. Import means:
A) Buying goods from other countries
B) Selling goods to other countries
C) Producing only wheat
D) Making roads only
Answer: A) Buying goods from other countries
44. Trade deficit means:
A) Imports are more than exports
B) Exports are more than imports
C) No trade
D) No imports
Answer: A) Imports are more than exports
45. Remittances are:
A) Money sent by overseas Pakistanis
B) Local school fees
C) Sports medals
D) Farm animals
Answer: A) Money sent by overseas Pakistanis
46. State Bank of Pakistan is the:
A) Central bank
B) Sports board
C) Agriculture college
D) Railway station
Answer: A) Central bank
47. FBR is mainly responsible for:
A) Tax collection
B) Sports training
C) Weather forecasting
D) Railway ticketing
Answer: A) Tax collection
48. Pakistan’s major export industry is:
A) Textile
B) Shipbuilding only
C) Oil exports only
D) Car exports only
Answer: A) Textile
49. A budget surplus means:
A) Revenue is more than expenditure
B) Expenditure is more than revenue
C) Imports are more than exports
D) No revenue
Answer: A) Revenue is more than expenditure
50. Infrastructure helps economy by:
A) Improving trade, transport and production
B) Stopping business
C) Reducing connectivity
D) Ending employment
Answer: A) Improving trade, transport and production
Quick Revision Table
| Topic | Key Point |
|---|---|
| GDP | Total value of goods and services |
| Inflation | General rise in prices |
| CPI | Measures consumer price changes |
| Budget deficit | Expenditure more than revenue |
| Agriculture | Food, employment, raw material |
| Textile | Major industry/export sector |
| CPEC | Connectivity and infrastructure |
| Gwadar | Port in Balochistan |
| ML-1 | Railway upgradation |
| Hockey | National game |
| Cricket | Most popular sport |
Common Mistakes
| Confusion | Correct Fact |
|---|---|
| GDP means government budget | GDP means total goods and services |
| Inflation increases purchasing power | Inflation reduces purchasing power |
| Gwadar is in Sindh | Gwadar is in Balochistan |
| ML-1 is a dam project | ML-1 is a railway project |
| Cricket is national game | Hockey is national game |
| Imports mean selling abroad | Imports mean buying from abroad |
Homework MCQs
1. GDP stands for:
A) Gross Domestic Product
B) General Domestic Plan
C) Global Development Project
D) Government Data Policy
Answer: A) Gross Domestic Product
2. Pakistan’s national game is:
A) Cricket
B) Hockey
C) Football
D) Squash
Answer: B) Hockey
3. Gwadar Port is in:
A) Punjab
B) Sindh
C) Balochistan
D) KP
Answer: C) Balochistan
4. Inflation means:
A) Rise in prices
B) Fall in population
C) Increase in rainfall
D) Decrease in exports only
Answer: A) Rise in prices
5. Sialkot is famous for:
A) Sports goods
B) Coal mines
C) Sea port
D) Wheat only
Answer: A) Sports goods
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