Pakistan’s REER index increases to 107.92 in July 2026
- A REER above 100 means the country’s exports are uncompetitive, while imports are cheaper
Pakistan's Real Effective Exchange Rate (REER) reached an 8-year high of 107.92 in July 2026, indicating uncompetitive exports and cheaper imports, according to State Bank of Pakistan data.
- Implications of a REER above 100 for trade.
- State Bank of Pakistan's clarification on REER interpretation.
- Historical trends and 8-year high of Pakistan's REER.
Pakistan’s Real Effective Exchange Rate (REER), a measure of the value of a currency against a weighted average of several foreign currencies, clocked in at 107.92 in July 2026, up from 106.33 in June 2026, data released by the State Bank of Pakistan (SBP) on Tuesday showed.
“This reading remains at a 8-year high and is also above the 10-year average of 102.44,” Topline Research said in a statement.
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 1.5% month-on-month (MoM) in July 2026.
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.