Analyzing the Impact of Islamic Banks' Letter of Credit Financing and Exchange Rate Fluctuations on Pakistan's Export Performance
DOI:
https://doi.org/10.5281/zenodo.13224975Abstract
This study investigates the factors influencing Pakistan's exports, with a specific focus on the role of Islamic banks' letter of credit financing and exchange rates. The analysis uses a sample of data from listed Islamic banks over a twelve-year period, encompassing 850 observations. Export performance is measured using Pakistan's export figures, while letter of credit financing by Islamic banks and exchange rates are considered as key external factors. Panel analysis reveals a positive correlation between Pakistan's export performance and both Islamic banks' letter of credit financing and exchange rates. The results suggest that increased access to letter of credit financing and favorable exchange rates can enhance Pakistan's exports. These findings provide valuable insights for policymakers aiming to boost exports and foreign exchange, as well as for managers looking to deepen their understanding of the critical factors affecting export performance.
Keywords:
Economics, Exchange rate, Islamic banks, Letter of credit financing, Pakistani export, Trade financeReferences
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