Impact of Currency Devaluation on Economic Growth: Evidence from Pakistan

This study examines the impact of currency devaluation on Pakistan's economic growth. Currency is controversial topics for both developing and developed economies to believe hope improve In this study, model used find cointegration between variables. The annual time series data over1990 2018, together with ARDL Johansson test whether there a long-run relationship growth devaluation. Both proposed models indicate that Pakistan’s has no significant changes in However, Interest rates gross capital formation are positive correlated long run. cure balance payment, enhances competitiveness international market promotes trade balance. Due some political instability, macroeconomic environmental conditions country, sometimes worse than disease. paper recommends making Pakistan economy sustainable, easy friendly business environment looking closer at indicators make Industrial policy. Government must good policy industrialization, instead devaluation, industrial sector potential economy, authorities should need create an foreigner investors. addition, allow freely depreciate through force efficient money system, official’s be discouraged.