Pakistan’s Real Effective Exchange Rate (REER) rose to 105.17 in March 2026, up from 103.11 in February, marking a 2 percent month on month increase and the highest level since September 2018, according to market data based on State Bank of Pakistan figures and Arif Habib Limited Research.
REER is a broader measure of the rupee’s strength against the currencies of Pakistan’s major trading partners, after adjusting for inflation differences.
A reading of 100 is often treated as a reference point. When the REER moves above 100, it generally suggests that the rupee is becoming relatively overvalued compared to peer countries.
This means Pakistan’s exports can become less competitive globally because local goods become more expensive in relative terms, while imports may become comparatively cheaper.
Latest reading suggests rupee’s inflation-adjusted value is now around 5 percent stronger than the base benchmark, which can put pressure on export-led sectors such as textiles, leather, surgical goods, and IT-enabled services.
REER had already been above 100 for several months, and the latest jump takes it to the highest level in nearly seven and a half years. On a trend basis, the index is now up 7.28 percent in fiscal year 2026 to date and 1.56 percent in calendar year 2026, indicating sustained appreciation in the rupee’s relative value.
Rising REER can be a double-edged sword. It can help contain imported inflation, especially for commodities like oil, machinery, and food inputs but it can also hurt Pakistan’s export competitiveness and current account sustainability if the gap remains elevated for too long.
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When you play with economy, it plays with you.
devaluation never helps increase in exports rather it brings inflation. To increase exports there must be a change in the current draconian tax laws especially that of sales tax refund policy
Yes only solution is quality goods export which will be enhanced strength of REER, otherwise devaluation of currency increased inflation which harmful 4 Nation & Country
This is untrue. Devaluation can help trigger local industries with less reliance on imports to minimize domestic cost. It’s a double edged sword but if planned correctly can be beneficial. Keeping the currency over valued without any future recovery perspective creates a bubble which when burst can sky rocket devaluation. This is something PMLN government always plays with to show their fake performance.
REER is not for pakistan. Do not believe on reer otherwise the inflation will be further werson and the export will not be increases on the same pace because there is no well for export in pakistan but the import has done just for overinvoicing and money laundering
That’s not how anything works. The fact that REER shows how bad things are is proof enough that economy actual conditions are being ignored or not worked on.
We don’t have exports the world needs. You can either import or launder . You can’t do both
Tell your division and govt that.
Funny how your own news outlet doesn’t know this
Why only see rupee value as import export. The currency should hold intrinsic value devaluation hurt the confidence people avoid to keep deposits in pkr, eventually it hits the economy and livelihood of the common people.
Rupee gained strength in Imran Khan era
Dollar was under 150
But military overthrown the government and ispr generals said
Aaj dollar neechay sur stock market oper gai
And that’s the last day after that Pakistan economy keeps going nose dive since 4 years
Shameful