Category: Pakistan Affairs | Last updated: 2026-09-18

A common conditionality imposed by the International Monetary Fund (IMF) on Pakistan for its bailout packages often includes measures aimed at:

A) Increasing public sector employment
B) Expanding subsidies on essential goods
C) Fiscal consolidation and exchange rate flexibility
D) Nationalization of private industries

Explanation

IMF programs typically require borrower countries like Pakistan to undertake fiscal consolidation (reducing budget deficit) and allow for a market-determined exchange rate to restore macroeconomic stability and external viability.

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