Pakistan’s rupee remained overvalued against the currencies of its major trading partners in July 2026, with the Real Effective Exchange Rate (REER) rising to 107.92, remaining at its 8-year high.
According to the latest State Bank of Pakistan data, Pakistan’s REER increased 1.49 percent month over month in July from 106.33 in June. The index has continued to rise in recent months, reaching 107.92 from 103.11 in February.
A REER reading above 100 generally indicates that the domestic currency is relatively stronger against the currencies of its trading partners after accounting for inflation. While a stronger rupee can make imports relatively cheaper, it can additionally reduce the price competitiveness of Pakistani exports.
An overvalued rupee can make Pakistani goods more expensive for foreign buyers, potentially making it harder for exporters to compete on rate in international markets. Meanwhile, imports become relatively cheaper for domestic buyers.
The latest data shows the REER has moved steadily higher, from 103.11 in February to 104.29 in March, 105.84 in April, 106.08 in May, 106.33 in June and 107.92 in July. Although export performance is also influenced by factors such as global demand, productivity, production costs and trade policies, a persistently high REER can put pressure on export competitiveness.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Related stories
EPFO's insurance scheme explained: Here's how to avail up to ₹7 lakh…
About the AuthorJocelyn FernandesJocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats…
Govt. to procure 405 key defence items from Indian industry
Components for helicopters, Su-30MKI, LCA, feature in sixth indigenisation list; more than 15,700 defence items have been developed domestically over the last five years
Auto |Loans| Hit Record Rs. 386 Billion
Auto financing in Pakistan rose to Rs. 386 billion in July 2026, increasing 35.2 percent year-on-year from Rs. 286 billion… Read More The post…
L&T Finance ready to strike gold in West Bengal
Benchmarks Nifty24,154.90-132.75FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return23.3 % Invest NowEnter search text:HomeETPrimeMarketsMarket DataNewsIndustrySMEPoliticsWealthMFTechAICareersOpinionNRIPanacheThe Economic Times daily newspaper is available online now. Read Today's…