The State Bank of Pakistan (SBP) reported on Monday that Pakistan’s Real Effective Exchange Rate (REER) increased to 100.8 in October 2024. This marks a rise from the REER index of 98.64 recorded in September 2024.

A REER value above 100 suggests a decline in trade competitiveness, as it indicates that exports are becoming more expensive while imports are cheaper. Conversely, a REER below 100 would imply that the country’s exports are more competitive in the global market.

This increase in the REER could impact Pakistan’s trade dynamics, potentially affecting the balance between exports and imports. The central bank’s data highlights the ongoing challenges in maintaining competitive pricing for Pakistani goods in international markets.