ISLAMABAD: The federal government has fixed the US Dollar exchange rate at Rs290 for budget planning in the fiscal year 2026-27. The rate will be used by ministries and government departments while preparing financial estimates for the upcoming year.
According to official instructions from the Finance Ministry, all ministries and divisions must use the Rs290 per US Dollar benchmark when calculating budget estimates. The rate will also apply to foreign loan projections, grant assessments, and development expenditure planning.
The new benchmark reflects a depreciation of about 3.5 percent compared to the exchange rate used for revised estimates in the current fiscal year. This represents an increase of around Rs10 per dollar from the previous planning assumption.
The decision comes despite the relative stability of the Pakistani rupee in recent months. On Thursday, the local currency was trading at approximately Rs278.42 against the US Dollar in the interbank market. The planning rate is therefore higher than the current market value.
Government projections show that Pakistan is expected to receive significant foreign funding during FY2026-27. Federal and provincial governments are likely to secure around $3.2 billion in foreign project financing. This amount is estimated at nearly Rs927 billion under the new exchange rate assumption.
The projected foreign financing will account for more than 20 percent of the country’s combined national development budget, which is expected to reach around Rs4.3 trillion. Officials believe these funds will support key infrastructure and development projects across the country.
The budget planning assumptions also reflect Pakistan’s future external financing requirements. According to projections from the International Monetary Fund, the country’s gross external financing needs could reach $21.2 billion in the next fiscal year. The requirement may increase further to nearly $30 billion in FY2027-28.
Despite these obligations, government officials remain confident about the country’s financial position. Sources said the Prime Minister’s Office recently reviewed Pakistan’s external financing outlook and received assurances that the expected funding needs remain manageable.
Meanwhile, the government has set a current account deficit target of around 0.7 percent of GDP for FY2026-27. This is equal to approximately $3.6 billion.
At the same time, interest payments on external debt are expected to approach Rs1.1 trillion. Overall debt servicing costs could rise to nearly Rs7.8 trillion during the next fiscal year, making financial planning increasingly important.
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The government’s decision to set the US Dollar rate at Rs290 is expected to play a key role in shaping budget estimates and managing future financial commitments.
