- January 19, 2026
- Posted by: Tresmark
- Category:
Pakistan’s Real Effective Exchange Rate (REER) index declined to 103.73 in December 2025, down from 104.9 in November 2025, indicating a slight depreciation of the Pakistani rupee in real terms. The decline suggests a modest improvement in the country’s external competitiveness, particularly for exports.
A REER value above 100 indicates that the currency remains overvalued, although the recent downward movement reflects easing pressure on the exchange rate. Economists note that a gradual decline in the REER index can help support export-oriented sectors and reduce trade imbalances. However, they caution that maintaining stability in the exchange rate remains essential to control inflation and ensure sustainable economic growth.
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