The article examines how exchange rates affect trade balances in Pakistan. By analyzing 30 years of data, the researchers found that Pakistan consistently has a negative trade balance. This means the country imports more than it exports, leading to a deficit. The study shows that the exchange rate plays a significant role in this imbalance, with a strong negative correlation between the two. Essentially, Pakistan's trade deficit is influenced by the continuous depreciation of its currency, which makes imports more expensive compared to exports.