NOTE: Attempt FIVE questions in all, including question No. 8 which is COMPULSORY. All questions carry EQUAL marks.

1. Discuss the role of foreign aid in the development strategy of Pakistan development budget?

2. What are characteristic reasons of the failings of economic planning in Pakistan?

3. Amplify to differentiate the terms of GNP & GDP and discuss the contribution of agriculture sector v/s industrial sector in the GDP of Pakistan.?

4. Write an essay on the scope of introduction of interest free banking in Pakistan.

5. What do you know of tax reforms in Pakistan in recent months? What are the basic reasons of the failure of increasing the tax-net?

6. Clarify the distinction between any two of the followings:
(a) Public Finance v/s Private Finance
(b) Foreign Remittances v/s Export Earnings
(c) Agriculture Tax v/s Value added tax
(d) Budget Estimates v/s PSDP

7. What do you understand of cash crops? What important role cash crops play, in export earnings of Pakistan?


8. Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) External debt servicing is greater than:
(a) Social sector spending
(b) Defense spending
(c) Agriculture servicing
(d) Industrial sector investment
(e) None of these

(2) Pakistan foreign earnings largely depend on:
(a) Agricultural products
(b) Industrial products
(c) Overseas Pakistan remittances
(d) Software exports
(e) None of these

(3) Nationalization of 70s in Pakistan has done:
(a) More good to the economy
(b) More harm to the economy
(c) Has not affected the economy substantially
(d) Has not been effective considerably
(e) None of these

(4) The largest revenue collection is through:
(a) Income tax
(b) GST
(c) Customs duty
(d) Wealth tax
(e) None of these

(5) Per capita income in Pakistan in the last 5 years is:
(a) Increasing substantially
(b) Decreasing marginally
(c) Constant largely
(d) Increasing in the first two years, but decreasing in the subsequent three years.
(e) None of these

(6) The economic growth rate in Pakistan in the last 5 years is:
(a) Declining in trend
(b) Static almost
(c) Increasing Flatulently
(d) Improving constantly
(e) None of these

(7) The GDP growth in Pakistan largely depends on:
(a) Manufacturing sector
(b) Agriculture sector
(c) Service sector
(d) None of these

(8) Large scale manufacturing sector growth rate in Pakistan in the last financial year was about:
(a) 15%
(b) 10%
(c) 5%
(d) 0%
(e) None of these

(9) Which is the highest body to approve the public sector financial outlay.
(a) DDWP
(b) CDWP
(c) ECNEC
(d) NEC
(e) None of these

(10) Education spending as share of the budget in Pakistan is nearly:
(a) 15%
(b) 12%
(c) 10%
(d) 8%
(e) None of these


(B) Indicate either the following statements are true or false. Explain your answer.

(11) Due to inflation the nominal GNP of Pakistan is increasing while its real GNP is falling.
(12) Since the freezing of foreign accounts, GDP of Pakistan is greater than its GNP.
(13) Pakistan’s balance of trade is in deficit owing to continue devaluation of the Pak Rupee.
(14) In contract of “Hechschers-Ohlin” theorem Pakistan is exporting labour intensive goods while importing capital-intensive commodities.
(15) The privatization commission of Pakistan is in fact a follow up of demand side policy.
(16) The establishment of Khushali Bank is a follow up of supply side policy.
(17) The failure of monetary policy in Pakistan owing to less sensitivity of investment demand to rate of interest.
(18) Due to tax consumption allowance, the government employees in Pakistan are in fact paying low tax per Rupees earned.
(19) Devaluation of Pak currency definitely causes an increase in foreign debt in real terms, but not in nominal terms.
(20) Government of Pakistan mainly borrows from general public by selling its securities.

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