Pakistan’s Real Effective Exchange Rate (REER) rose to 104.76 in November 2025, up from a revised 103.92 in October 2025, according to data released by the State Bank of Pakistan (SBP). The REER measures the value of a currency relative to a weighted average of several foreign currencies.
A REER above 100 indicates that the country’s exports are becoming uncompetitive, as they are priced higher, while imports become cheaper. Conversely, when the REER falls below 100, it indicates a more favorable environment for exports and relatively more expensive imports.
The latest data from the SBP shows that Pakistan’s REER increased by nearly 0.8% month-on-month (MoM) in November 2025. Compared to November 2024, the REER rose 1.7%, from a value of 103.02.
Topline Securities highlighted that the REER has now exceeded the 10-year average of 103.2, suggesting that the relative value of Pakistan’s currency is becoming overvalued compared to its peer countries. However, the SBP clarified that a REER index of 100 should not be viewed as the equilibrium value of the currency but rather as a reflection of changes relative to the 2010 average.
The Nominal Effective Exchange Rate (NEER), which tracks the relative value of the currency, also increased by 0.49% MoM in November 2025, reaching 38.18, up from 38.00 in October. On a yearly basis, the NEER decreased by 1.8%, down from 38.89 in November 2024.
The REER is an important indicator of a country’s international competitiveness, as it reflects the relative price of a basket of goods in Pakistan compared to its major trading partners, with adjustments based on nominal exchange rates.
