Pakistan’s Real Effective Exchange Rate Increases Further in January 2025

Pakistan’s Real Effective Exchange Rate (REER) clocked in at 104.05 in January 2025, according to latest data issued by the State Bank of Pakistan (SBP). According to the latest monthly data released by the central bank, the REER Index stood at 104.05 in January 2025 against 103.67 recorded in December 2024. The REER reading increased by 0.37 percent over the previous month in January 2024 while the increase during the current fiscal year is 3.98 percent. A REER above 100 indicates a loss in trade competitiveness with exports becoming more expensive and imports getting cheaper, while a REER below 100 means the country’s exports are competitive.