Previous studies assumed symmetry effect of exchange rate change on domestic production and used linear ARDL model for estimation. However, this study test asymmetry, following the concept of partial sum by decomposing exchange rate in appreciations and depreciations variables. In this study, we have used nonlinear ARDL approach of Shin et al. (2014) to check asymmetry effect. Study conducted in South Asian countries except Afghanistan. From 1980-2019 time series data extracted from BP, Bruegel, IFS and WDI. The findings indicate that there is a short run asymmetry impact of exchange rate movement on domestic production, with the exception of Bhutan and Nepal. In long run exchange rate changes have asymmetry impacts on the economies of Bangladesh, Nepal and Pakistan only. Results are different for each economy, which shows exchange rate affect is country specific Supervisor:- Dr. Farhat Mahmood Co-Supervisor:- Dr. Hafsa Hina