The Nexus of Currency Fluctuations on Imports and Exports of Pakistan

Imports and exports are fulfilling the economic requirements and therefore in both productive ways it is highly demanding and efforts oriented to focus on the proper and effective ways of tackling these factors. Its representing that how Pakistani rupees value effects official debt, imports and exports an also study how it effects stock exchange/market. This research is supportive to examine the fluctuating factors and its role importantly for the development of drawing a clear and supportive economically benefiting policy for the wealth and progression in the fiscal and economic years. This research study was conducted to examine the impacts of currency fluctuations during the time period 2000 to 2010 (11 years) and these years have proved with some interested findings which are compatible with ground realities and positions and facts. The research study found that Pakistan’s exports have significantly increased with the increasing devaluation or declining the monitory value of the Pakistan’s currency. In addition it is also found explicitly the impact of currency fluctuation is positive and considerable on the exports in Pakistan during the time period 2000 to 2010 (11 years) while the impact on currency fluctuations on import is explicitly and implicitly found non related and insignificant. Therefore these findings are proving that imports are not related and found insignificant in relation with currency while the roles with exports are found quite supportive and recognizable. In this time series data OLS model in form of single linear regression has been applied to examine the influential impacts and recognizable factors for the research objectives.