Pakistan’s REER index appreciates further to 103.95 in October 2025

Pakistan’s Real Effective Exchange Rate (REER), a measure of the value of a currency against a weighted average of several foreign currencies, witnessed further increase as it clocked in at 103.95 in October 2025, up from 101.70 (revised) in September 2025, data released by the State Bank of Pakistan (SBP) on Monday showed. A REER above 100 means the country’s exports are uncompetitive, while imports are cheaper. The situation reverses when REER stands below 100 on the index. As per SBP’s latest data, the REER increased 2.21% month-on-month (MoM) in October 2025. When compared with September 2024, the REER value increased 3.14%, when it stood at 100.78. The SBP says a REER index of 100 should not be misinterpreted as denoting the equilibrium value of the currency. “Movement of the REER away from 100 simply reflects changes relative to its average value in 2010 and is unrelated to its equilibrium value,” the central bank said in an explanatory note on the topic.