Pakistan’s real effective exchange rate (REER) – the country’s cost of international trade – improved to 99.85 points on the index in June, making exports viable and imports expensive mainly due to depreciation in rupee against the basket of major trading partners’ currencies.
The real effective exchange rate below 100 means the country’s exports remain competitive and import expensive. The situation reverses when REER stands above 100 on the index, it was learnt.
“The improvement in real effective exchange rate would encourage exports from Pakistan and discourage unnecessary imports into the country,” Pak-Kuwait Investment Company (PKIC) Head of Research Samiullah Tariq said while talking to The Express Tribune.
