"Table 7: Export Equation of Pakistan (1985-2013) Regression StatisticsMultiple R 0.269678971R Square 0.072726747Adjusted R Square 0.001398035Standard Error 0.056518823Observations 29Coefficients Standard Error t Stat P-valueIntercept 0.197193753 0.717021544 0.275018 0.785476-0.157329673 0.111339115 -1.41307 0.169496Log exchange rate0.196220894 0.141763162 1.384146 0.178081Log World IncomeHence, we can write the following equations using the result in Table 7:? log X = B1 + B2 log WI + B3log ER + a1? X = 0.19 + 0.19 WI - 0.15 ER? World Income Elasticity = 1/ 0.19=5.263? Export Elasticity = 1/ 0.15 = 6.66Discussion Of Table 7:i. As multiple regressions is 0.26. So, it indicates that there is almost no correlation between thedependent (Export) and independent variables (World Income and Exchange rate).2ii. R is 0.07 therefore 7 % of the variation in Exports is explained by the World Income and theExchange rate. iii. A 1% appreciation in the Real Exchange rate causes the exports (as a percentage of GDP) todecrease by 6.66%.iv. A 1% increase in the World Income causes 5.263 % increases in the exports.Table 8: Import Equation of Pakistan (1985-2013)Regression Statistics0.820782371Multiple R0.6736837R SquareAdjusted R Square 0.648582447Standard Error 0.035251571Observations 29Coefficients Standard Error t Stat P-valueIntercept 0.698691364 0.13365691 5.227499 1.85E-05Log GNI 0.433324256 0.071413603 6.067811 2.07E-06Log exchange rate -0.374010171 0.051106115 -7.31831 9.01E-08Source: Author’s own calculations from Appendix 2 Hence, we can write the following equations using the result in Table 8:? log Y = B1 + B2 log GNI+ B3log ER + a1? Y = 0.69 + 0.433 GNI - 0.37 ER? Domestic Income Elasticity = 1/ 0.433 = 2.307 ? Import Elasticity = 1/ 0.37 = 2.702 Discussion Of Table 8:i. As multiple regressions is 0.82. So, it indicates that there is a very high level of correlation betweenthe dependent (Import) and independent variables (Domestic Income and Exchange rate).2ii. R is 0.67 which is a good fit as it means that 67% of the variation in Imports is explained by theDomestic Income and the Exchange rate. iii. A 1% appreciation in the Real Exchange rate causes the imports to decrease by 2.702%.iv. A 1% increase in the domestic income causes 2.307% increase in the imports.Marshall-Lerner condition in Pakistan (1985-2013)Here, the affect of the changes in Real Exchange rate and the Domestic Income on the imports isrepresented in the value terms (Price *Quantity). Moreover, supply and demand quantities take time toadjust. There are various lap years involved.Apart from that there are various factors which influenced theimports of Pakistan discuss later in this paper. So, using export and import elasticity from the above we canwrite Marshall - Lerner Condition = 6.666 +2.702 = 9.368. Therefore, since it is greater than 1, Marshall- Lerner equation is justified for Pakistan for the period 1985-2013.However, there are various issues worthnoting which might have affected the outcome. The theoretical aspect of the country is done in the latersections. "