The study investigates the impact of instability of exchange rate on exports of Pakistan, in particular estimating the association between exchange rate volatility and exports growth. Furthermore, it finds the direction of association between exchange rate volatility which is disaggregated into time groups and growth in exports. We have used monthly data from the period of July 2000 to March 2012 which is taken from IFS (International Financial Statistics). Wilcoxon signed ranks test is applied on the selected data and it is concluded that there is no significant association between exchange rate and export growth. Supervisor:- Muhammad Ali Kemal