CHAPTER 1: INTRODUCTION

 1.1 Introduction………………………………………………………..…6

 1.2 Purpose of Study……………………………………………………6

 1.3 Research Objective…………………………………………………6

 1.4 Research Methodology…………………………………………….7

 CHAPTER 2: LITERATURE REVIEW

 2.0 Literature Review……………………………………………………8

 CHAPTER 3: CURRENCY

 3.1 What Is Currency .………………………………………………....11

 3.2 Pakistani Currency ……………………………………………..…11

 3.3 Role of SBP ……….………………………………………………..17

 CHAPTER 4: DEVALUATION

 4.1 What Is Devaluation?...…………………………………………..…20

 4.2 Devaluation in Modern Economies …………...….………………20

 4.3 Types of Exchange Rate Systems ……………………………..…21

 4.4 Under What Circumstances Might a Country Devalue?.…..…..22

 4.5 Effects of Devaluation…………….……………….……..…….……23

 4.6 Challenges…………………………………………………..…………25
 CHAPTER 5: EXCHANGE RATE POLICY

 5.1 Exchange Rate………...…………………………………………..…41

 5.2 SBP’s Policy …………........................................….………………44

 CHAPTER 6: IMPACT OF DEVALUATION

 6.1 Adverse Balance of Payment ………...….….…………………….…47

 6.2 Depleting Foreign Reserves …………................….……………..…55

 6.3 Decreased Credit Rating……………………………………………...55

 6.4 Measures for Correcting the Adverse Balance of Payments…..57

 CHAPTER 7: CONCLUSION AND RECOMMENDATIONS

 7.1 Conclusion ………...….……….………………………………….….…64

 7.2 Recommendations …………................……………..……………..…64