The study looked at how the government's budget deficit in Pakistan affects things like money supply, prices, output, and foreign reserves. They found that when the government borrows money to cover its deficit, it can lead to an increase in money supply and a decrease in foreign reserves. This can impact things like trade balance and the value of the country's currency. The study also showed that exports are influenced by factors like income and exchange rates, while imports are affected by income and prices. Overall, the researchers suggest that a close connection between monetary and fiscal policies is important for maintaining economic stability in Pakistan's foreign sector.