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ER In lation Pakistan Trade de icit Exchange Rate (ER) stability is an important factor in determining the economic position of an economy. Speculation in the exchange rate shows the poor performance of a country. A change in the exchange rate may affect the in lation as well as interest rate in the country and Pakistan in not an exception to this relationship. In this paper, we have tried to examine the impact of exchange rate on the trade balance. We used the data for 30 years and tested thedoi:10.20474/jabs-6.2.2 fatcat:tslndyt2grbkhhj3x6wuap5p3u