The paper analyses different models to check the behaviour of exchange rate after the recent floating period in July 2000. It is found that the gap between the nominal and real exchange rate has widened after 9/11. Changes in the nominal exchange rate and real exchange rate are highly correlated...

Throughout Pakistan’s history, policy has sought to promote exports through government support and incentives. The government machinery is geared to export promotion especially through direct and indirect subsidies. Surprisingly, these policies have been continued without serious examination....