Pakistan’s Real Effective Exchange Rate Rises in October 2025

Pakistan’s Real Effective Exchange Rate (REER) climbed to 103.95 in October 2025, up from 101.70 in September, according to data released by the State Bank of Pakistan (SBP) on Monday. This marks a month-on-month increase of 2.18%. The 2.21% month-on-month increase highlights mounting pressure on the country’s export competitiveness, as a REER above 100 typically indicates that exports are becoming less competitive while imports are relatively cheaper. The SBP cautioned that a REER value of 100 should not be interpreted as the equilibrium value of the currency, noting that movements away from 100 simply reflect changes relative to the 2010 average and are not necessarily indicative of fair value. Meanwhile, the Nominal Effective Exchange Rate Index (NEER) also edged higher, rising 0.61% month-on-month to a provisional value of 38.00 in October from 37.77 in September. On a year-on-year basis, however, the NEER index slipped 0.07% from 38.27 in October 2024.