ISLAMABAD: The Ministry of Finance has decided to prepare the federal budget for fiscal year 2026-27 using an exchange rate assumption of Rs290 against the US dollar.
According to official documents, the same exchange rate estimate of Rs290 per dollar had been used for the current fiscal year 2025-26. The ministry has opted to maintain that benchmark for the upcoming fiscal year, although the revised estimate for the current year has been set at Rs280 per dollar.
Sources in the Finance Ministry said the value of the rupee has remained relatively stable over the past two years in line with market-based exchange rate trends.
Officials explained that the exchange rate assumption is used for calculating external financing requirements, foreign aid, debt repayments and other obligations in local currency terms.
According to sources, the exchange rate framework will remain aligned with the market-based mechanism agreed upon with the International Monetary Fund (IMF). They added that stability in the local currency is expected to encourage investment and support broader economic confidence.
Finance Ministry sources said higher remittance inflows and reduced pressure from external payments have helped maintain the rupee’s stability during the current fiscal year.
Officials further noted that a stable exchange rate in the coming year could help contain the import bill and inflationary pressures. Estimates related to international trade, foreign loans, development assistance and investment flows have also been prepared using projected foreign currency assumptions.
