The federal government of Pakistan has fixed the exchange rate at Rs. 290 per US dollar for preparing the budget for the fiscal year 2026-27. This decision comes even though the Pakistani rupee has shown stability in recent weeks.
The Finance Ministry has directed all ministries and divisions to use this rate for making budget estimates, calculating foreign loans, grants, and development spending. The assumed rate shows a planned depreciation of about 3.5 percent, or nearly Rs. 10, compared to the current fiscal year’s benchmark.
As of early June 2026, the rupee was trading around Rs. 278.42 in the interbank market. Despite this strength, the government chose a more cautious rate to plan for future needs.
Officials say the move supports Pakistan’s large external financing requirements. The country expects to get around $3.2 billion in foreign project financing next year. According to IMF projections, gross external financing needs could reach $21.2 billion in FY2026-27.
The government is also targeting a current account deficit of 0.7 percent of GDP. Interest payments on external debt are expected to be nearly Rs. 1.1 trillion. This conservative exchange rate helps manage risks related to debt servicing and import costs.
Experts believe this approach will provide a buffer against possible currency pressures while the country continues talks with the IMF and other lenders. The final budget for 2026-27 is likely to be presented soon.
