The federal government has set an exchange rate of Rs. 290 per US dollar for budget planning purposes in FY2026-27.
The Finance Ministry has formally instructed ministries and divisions to use the Rs. 290 per dollar rate when preparing budget estimates, foreign loan projections, grant calculations, and development spending allocations for the upcoming fiscal year.
The assumed rate represents a depreciation of around 3.5 percent, or Rs. 10 per dollar, compared with the benchmark used for revised estimates of the current fiscal year. The move comes even as the rupee has remained largely stable and was trading at around Rs. 278.42 against the dollar in the interbank market on Thursday.
Government plans indicate that Pakistan’s federal and provincial governments are expected to secure approximately $3.2 billion, or Rs. 927 billion, in foreign project financing during FY27. The amount represents more than one-fifth of the country’s combined national development budget of roughly Rs. 4.3 trillion.
The budget assumption also comes as Pakistan faces sizable external financing needs. According to IMF projections, the country’s gross external financing requirements are estimated at $21.2 billion next fiscal year and could rise to around $30 billion in FY2027-28.
Pakistan still remains in a comfortable position to meet its external obligations. Sources said the Prime Minister’s Office recently reviewed the country’s external financing outlook and received assurances that projected funding requirements are manageable.
The government’s current account deficit target for FY2026-27 is around 0.7 percent of GDP, or approximately $3.6 billion.
Meanwhile, interest payments on external debt alone are projected to reach nearly Rs. 1.1 trillion, contributing to an overall debt servicing bill that could approach Rs. 7.8 trillion next year.