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Explanation

• A Profitability Index (PI) of 0.9 means the project's NPV is negative, and the project should be rejected.
• The Profitability Index (PI) compares the present value of future cash inflows with the initial investment.
• PI > 1: NPV is positive → Accept the project.
• PI = 1: NPV is zero → Indifferent between accepting and rejecting.
• PI < 1: NPV is negative → Reject the project.

Last verified on 12-08-2026

Explanation

• Federal funds can be spent by Federal, Provincial, and Local Bodies, according to their respective constitutional and legal responsibilities.
• The Federal Government spends funds on federal subjects and national-level programs.
• Provincial Governments spend funds on subjects assigned to the provinces.
• Local Bodies spend funds on local services and development under applicable laws.

Last verified on 12-08-2026

Explanation

• The 18th Constitutional Amendment granted greater provincial autonomy.
• It was passed by Parliament in 2010.
• It was received presidential assent on 19 April 2010.
• The amendment abolished the Concurrent Legislative List, transferring many subjects to the provinces.
• It strengthened the role and powers of the provincial governments.

Last verified on 12-08-2026

Explanation

• Article 27 deals with non-discrimination in appointments to the service of Pakistan.
• It provides safeguards against discrimination in public service appointments.
• It mentions grounds such as race, religion, caste, sex, residence, or place of birth.

Additional information:

• Article 25: Equality of citizens.
• Article 28: Preservation of language, script, and culture.

Last verified on 12-08-2026

Explanation

• Bureaucracy is non-elected.
• Bureaucrats are generally appointed officials, not elected representatives.
• They implement government policies and manage public administration.
• Bureaucracy operates through rules, procedures, and established administrative structures.
• It provides continuity in government administration despite changes in elected governments.

Last verified on 12-08-2026

Explanation

• Pakistan's civil service is influenced mainly by its colonial legacy.
• Pakistan inherited much of its administrative structure from the British colonial system.
• The civil service developed from institutions established during British rule in the Indian subcontinent.
• The system emphasized hierarchy, rules, authority, and centralized administration.
• This colonial administrative tradition continues to influence Pakistan's civil service.

Last verified on 12-08-2026

Explanation

• Pakistan introduced bureaucratic reforms on the model of developing countries.
• These reforms aimed to improve the efficiency and organization of Pakistan’s administrative system.
• Pakistan studied administrative models and experiences of other developing countries.
• The reforms focused on improving public administration and government efficiency.

Last verified on 12-08-2026

Explanation

Required return = Dividend Yield + Growth Rate

= (4/100) + 5% = 4% + 5% = 9%.

Last verified on 12-08-2026

Explanation

For an ordinary annuity: PV = PMT × [1 − (1 + r)⁻ⁿ] / r

PV = 4,000 × [1 − (1.08)⁻²⁰] / 0.08 ≈ Rs. 39,272.

Last verified on 12-08-2026

Explanation

• When a bond sells above its par value, its YTM is lower than its coupon rate.
• Par value is the face value of the bond.
• If market price > par value, the bond is trading at a premium.
• For a premium bond, the yield to maturity (YTM) < coupon rate.
• Therefore, P > Par Value and YTM < Coupon Rate.

Last verified on 12-08-2026