The federal government has decided to use an exchange rate of Rs. 290 per US dollar while preparing the FY2026-27 budget.
The Ministry of Finance has asked all government ministries and departments to use this rate when calculating budget estimates, foreign loans, grants, and development projects.
This rate is about Rs. 10 higher than the one used for the current fiscal year’s estimates, showing an expected depreciation of around 3.5% in the value of the rupee.
However, the rupee is currently trading at around Rs. 278.42 per dollar in the interbank market.
The government expects to receive about $3.2 billion (Rs. 927 billion) in foreign funding for development projects during FY2026-27. This amount makes up more than 20% of the country’s total development budget, which is estimated at Rs. 4.3 trillion.
Pakistan will also need significant foreign financing next year. According to IMF estimates, the country’s external financing needs could reach $21.2 billion in FY2026-27 and may rise to $30 billion in FY2027-28.
Despite these requirements, government officials believe Pakistan will be able to meet its financial obligations. The Prime Minister’s Office recently reviewed the situation and was informed that the expected funding needs are manageable.
The government is targeting a current account deficit of 0.7% of GDP, which is equal to about $3.6 billion next year.
At the same time, interest payments on foreign debt alone are expected to reach nearly Rs. 1.1 trillion, while total debt servicing costs could rise to around Rs. 7.8 trillion in FY2026-27.
