Impact of Exchange Rate Volatility on Trade Balance: Evidence from Pakistan and its Major Trading Partners

The present research study examines the response of exchange rate changes on the trade balance of Pakistan, in its major trading partners e-i., United States, China, United Kingdom, Saudi Arabia, Japan, Germany, Malaysia, and Singapore. Data has been taken from the World Development Indicator and the International Trade Centre for the time 2003 to 2021. To estimate the data, we applied the Panel Autoregressive Distributed Lags model. The findings of the study show that in the short run, the Exchange rate, and Consumer Price Index don't seem to have a significant impact on the Trade Balance, while the GDP demonstrates