Question

how exports and imports of Pakistan will be affected when dollar value increases from Rs.150 to 156.2​

Answer 1

Answer:

HLW MATE !!!

Never before in the country’s history have imports been over two-and-a-half times of exports as they are now. This unprecedented trade deficit has occurred despite the prevalence of relatively low international prices of our biggest import, oil.

Answer 2

Due to appreciation of dollars relative to Pakistani currency,the export level of Pakistan  will increase and its import level will decrease to United States(US).

Explanation:

• An increase in dollar value with respect to Pakistani currency indicates an appreciation of dollars relative to Pakistani currency.
• An appreciation of dollars relative to Pakistani currency essentially implies that the monetary value of US goods and services has now become more expensive to Pakistani citizens and the Pakistani goods and services have become cheaper to the US citizens.
• Hence,the demand for Pakistani goods and services by US citizens would increase leading to a rise or increase in the Pakistani export level to US.However,since the US goods and services have become more expensive to Pakistani citizens,the demand for US goods and services would decrease among Pakistani imports thereby leading to a decline in the import level of Pakistan.