Pakistan sets US Dollar rate at Rs290 for Budget 2026-27 planning

ISLAMABAD – The federal government has set the US dollar exchange rate at Rs290 for the preparation of the budget 2026–27, reflecting a slight depreciation of around 3.5 percent or Rs10 compared to the current financial year. Reports said the Ministry of Finance has issued a directive to all relevant ministries and divisions to use the Rs290 per dollar rate for budget estimates. This rate will serve as the basis for calculations related to external debt repayments, foreign grants, loans, and development project financing. The government maintained that Pakistan continues to follow a flexible exchange rate policy, while the decision is also seen as a signal of confidence in the country’s capacity to manage external debt obligations. The approved exchange rate will also be applied to defence-related imports, diplomatic missions abroad, and the Public Sector Development Programme (PSDP). Officials noted that the upcoming budget speech is tentatively scheduled for June 10, although final approval will be given by Prime Minister Shehbaz Sharif. In addition, estimates suggest that Pakistan will rely significantly on external financing for development spending. The federal and provincial governments are expected to secure around $3.2 billion in foreign loans for development projects in the next fiscal year, equivalent to approximately Rs927 billion, which accounts for nearly 22 percent of the total development budget. The International Monetary Fund (IMF) has projected Pakistan’s external financing needs at $21.2 billion for FY2026–27, rising to $30 billion in FY2027–28.