This document discusses Pakistan's exchange rate reforms in 1982. It provides historical context on Pakistan facing balance of payment crises in 1979 due to poor export performance, declining terms of trade, and falling aid inflows. In 1980, Pakistan signed an IMF agreement and devalued its currency, but the trade deficit still increased. In 1982, Pakistan decided to delink its currency from the US dollar to have more flexibility in exchange rate management. The policy aimed to gradually devalue the Pakistani rupee to restore international competitiveness without sharp political consequences. Over time, this approach helped manage inflation while the economy and exports grew rapidly.