An Estimation of the Extent of Over¬valuation of the Domestic Currency in Pakistan at the Official Rate of Exchange, 1948/49—1964/65

The purpose of this paper is mainly two-fold: to examine some methodological issues involved in estimating the rate of overvaluation and to make a point-estimate of the rate based on observed data; and to construct time-series estimates of rates of overvaluation of Pakistani currency at the official exchange rate for the period from 1948/49 to 1964/65.