ISLAMABAD – Web Desk: The federal government has set the US dollar exchange rate at Rs 290 for the preparation of the upcoming fiscal year 2026-27 budget, reflecting a modest depreciation of approximately 3.5% or Rs 10 compared to the current fiscal year, according to official sources.
The Ministry of Finance has issued an official circular to all relevant ministries and divisions directing them to use the Rs 290 per dollar rate in their budget estimates for the next fiscal year. The rate will be used for external loans, grants, debt repayments, and financial estimates of development projects. The government has proposed June 10 for the budget speech, though final approval will be given by Prime Minister Shehbaz Sharif.
The rate will also be used to determine the defense budget portion related to procurement of defense equipment from abroad and external debt repayments. The International Monetary Fund (IMF) has estimated the defense budget for the next fiscal year at Rs 2.66 trillion, though government sources indicate that due to border tensions, the government may allocate a higher amount.
For the next fiscal year, federal and provincial governments intend to obtain a total of $3.2 billion (approximately Rs 927 billion) in foreign loans for development projects, representing about 22% of the Rs 4.3 trillion national development budget — indicating significant reliance on external lenders for development expenditures. The current fiscal year’s budget was also prepared using the Rs 290 per dollar rate, though the rupee remained broadly stable.
