Abstract:
The main objective set by the study was to check the relationship with exchange rate fluctuation on
project budget. Other objectives such as to evaluate the impact of fluctuation on Project Budget and
analyze the available strategic options for managing foreign exchange rate risks further guide the study.
This research follows a descriptive study of Orange Line (Lahore Metro) project in Lahore that was
brought into being on foreign funding. Personnel from management and Finance sections were taken as
population for this study pertaining to the year 2021. The study population including 150 orange line
employees in Lahore. A sample size of 50 was finally selected for our study following simple random
sampling technique that is considered suitable to select the suitable research participant from the
population in large numbers. As said earlier, management and Finance sections’ project officials were
selected as they were well aware of the project financial matters and managerial issues. For collecting
primary data of quantitative nature, a survey questionnaire adapted for this purpose was administered to
the target respondents following drop the questionnaire and picklater technique giving the suitable time
to the respondents to fill the questionnaire with focused attention. A range of statistical techniques
including Frequency distributions, regression analysis were applied to undertake the data analysis. The
findings indicated that Orange Line (Lahore Metro) project has threats of Foreign Exchange related
Risks as transaction risk, exposure of economic risk, exposure and translation risk. Further revealed by
the study that mostly respondents had unanimity of mind that unstable exchange rates influence and
upset the revenue as well as profits, exposing an association of foreign exchange risk with financial
performance, fluctuations in foreign exchange influences earnings accounting besides the
organizational’ market value, similarly fluctuations in foreign exchange influences cash flows
negatively. Resultantly, fluctuations in foreign exchange causes deviances from
