Pakistan’s Real Effective Exchange Rate Rises Slightly in August 2025

Pakistan’s Real Effective Exchange Rate (REER) stood at 100.1 in August 2025, marginally higher than 100.0 in July, according to central bank data. The index recorded a month-on-month increase of 0.09%. For the fiscal year to date (FY26TD), REER has risen 2.11%. On a calendar year basis (CY25TD), however, the index is still down 3.44%. 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.