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Item PAKISTAN ECONOMY, DETERMINANTS AND ASYMMETRIC EFFECTS ON CAPITAL MARKETS(UMT, Lahore, 2021) Aariz Raza KhanEfficient capital markets inherently contain systematic risk and rapidly reflect real economic changes that ultimately affect the profits of the companies listed on the exchanges and future performance of the companies and usually economic indicators like gross domestic product, inflation, and other crucial factors that are publicly disseminated through state weekly, monthly, quarterly, and annual statistical reports that tend to be lagging the stock indices in general, except for few economic indicators that tend to have predictive powers. Moreover, Pakistan being a developing economy has efficiency concerns as well since most developed nations tend to have efficient markets as explained by Fama and French in their EMH theory. For this reason, this dissertation analyzes the relationship among exogenous economic indicators and the endogenous stock returns both in the short and long run. Along with that this paper analyzes efficiency of the markets as well. The first part of the overall analysis is about statistically significant relationships using Pearson’s correlation matrix for all economic and financial variables that indicates that most variables are insignificant when correlated but impact on stock indices is significantly present when regressed with lags, and for this reason a robust non-linear autoregressive distributed lag (NARDL) model has been applied to better understand the relationships between exogenous and endogenous stock indices. The study tests the asymmetry in effects of economic and financial variables on KSE-100 stock index, showing that only CPI, exchange rates and UK stock index have asymmetry effects, while others have symmetry effects. Correlation matrix suggests most variables are insignificant except for oil, exchange rates, 1-year treasury rate and stock indices.Item Nexus of Oil Prices and Exchange Rate: A Case Study of Pakistan(UMT, Lahore, 2021) Hassan MehmoodThis study's main purpose is to examine the significance of the relationship between exchange rate and oil prices in the long-run and short-run for the case of Pakistan. for this 5 purpose, the exchange rate was taken as a dependent variable, and oil prices were taken as an independent variable with other controlled variables including export, remittances, total reserves, and industrial growth. The data used for estimation is collected from the World Development Indicator and the Organization of Petroleum Exporting Countries. 42 observations have been taken to analyse the nexus of oil prices and exchange rate from 1978 to 2019. The estimations have declared that the nexus between the oil prices and the exchange rate is significant and positive. Increases in the exchange rate will increase the oil prices or increases in oil prices increases the exchange rate, if we want a stable exchange rate or prevent it from increases, then the oil prices must be controlled. Moreover, industrial growth has a positive and significant relationship with the exchange rate in both the long-run and short-run. Furthermore, export has negative and insignificant relation with exchange rate in the short-run in the long-run export have a negative and significant relationship with the exchange rate. Lastly, remittances and total reserves have a positive and significant relationship with the exchange rate in the long-run, in the short-run remittances and total reserves have a positive but insignificant relationship with the exchange rate. In the long-run higher reserves will bring confidence in the market in the time of financial instability with the help of reserves exchange rate can be controlled. Whereas an increase in remittances will increase the economy’s income and the nominal exchange rate is appreciated with the inflow of remittances.