Dollar exchange rate set at Rs 290 for new budget

The federal government has fixed the US dollar exchange rate at Rs 290 for the preparation of the budget for the upcoming fiscal year 2026-27.

This rate represents a slight decrease of about 3.5 percent or Rs 10 compared to the current fiscal year.

The Ministry of Finance has issued a letter to all concerned ministries and divisions directing them to consider a rate of Rs 290 to one dollar in the budget estimates. This rate will be used for foreign loans, grants, loan repayments, development projects and the defense budget (foreign procurement portion).

The government has proposed a date of June 10 for the budget speech, but the final approval will be given by Prime Minister Shehbaz Sharif.

In the upcoming fiscal year, the federal and provincial governments plan to obtain a total of $ 3.2 billion (about Rs 927 billion) in foreign loans for development projects, which is about 22 percent of the national development budget of Rs 4.3 trillion.

The government has decided to base the revised budget estimates for the current fiscal year on a rate of Rs 280 per dollar.

The dollar rate in the interbank market on Thursday was Rs 278.42.

According to the IMF, Pakistan’s total external financing requirements in the fiscal year 2026-27 could reach $21.2 billion and $30 billion in 2027-28.

The government has estimated the current account deficit to be around 0.7 percent of GDP ($3.6 billion).