REER hits eight year high at 107.92

The State Bank of Pakistan reported a current account deficit of $328 million for July 2026, narrower than the $814 million gap in June, according to The Express Tribune. On a yearly basis the shortfall also shrank compared with the $529 million deficit in July 2025. The improvement came mainly from higher workers' remittances and a rise in goods exports.

Separately, the SBP's data showed the real effective exchange rate, which tracks the rupee against a basket of major trading partner currencies, climbed to 107.92 in July from 106.33 in June. Topline Research described the reading as the highest in eight years and above the decade-long mean of 102.44. Readings above 100 mean exports lose some competitiveness overseas, and imports grow comparatively cheaper.

July goods shipments reached $3.1 billion, up from $2.6 billion in June, yet the yearly goods deficit widened to $3.2 billion as imports rose 13.4 per cent to $6.2 billion. Services exports reached $927 million, and the services gap shrank to $228 million. Secondary income, led by remittances, stayed the strongest support, with its surplus reaching $3.9 billion.