A proxy auto-config (PAC) file defines how web browsers and other user agents can automatically choose the appropriate proxy server (access method) for fetching a given URL.
A PAC file contains a JavaScript function “FindProxyForURL(url, host)”. This function returns a string with one or more access method specifications. These specifications cause the user agent to use a particular proxy server or to connect directly.
Multiple specifications provide a fall-back when a proxy fails to respond. The browser fetches this PAC file before requesting other URLs. The URL of the PAC file is either configured manually or determined automatically by the Web Proxy Autodiscovery Protocol.
Read more about Proxy Auto-config: Context, Proxy Configuration, The PAC File