Devaluing Pakistani Rupee Boosts Exports, Enhances Trade Balance in Pakistan
The study looked at how changes in exchange rates affect Pakistan's trade balance. They used data from 1971 to 2016 to see the relationship between exchange rates and trade balance. The results showed that when the Pakistani rupee is devalued against the US dollar, exports increase, improving the trade balance. However, high inflation and excess money supply can decrease exports and hurt the trade balance in the long run. The government needs to make strategies to boost trade balance and economic growth in Pakistan.