Pakistan’s Real Effective Exchange Rate Rises in September 2025

Pakistan’s Real Effective Exchange Rate (REER) rose to 101.73 in September 2025, up from 100.09 in August, according to the latest data. This marks a month-on-month increase of 1.64%. Since the start of the current fiscal year (FY26), the REER has climbed 3.77%. However, on a calendar year-to-date basis (CY25TD), the index is still down 1.87%. Analysts say the uptick in REER reflects a strengthening of the rupee against a basket of trading partner currencies, which could impact export competitiveness if the trend continues. The REER measures the country’s currency value against a basket of trading partners, adjusted for inflation. A level above 100 generally indicates the currency may be overvalued, while a level below suggests undervaluation.