Government of Pakistan Planning to Increase Dollar Price in Upcoming Budget 2025
As Pakistan prepares to unveil its federal budget for the upcoming fiscal year, government sources have revealed that the planning is being done with an assumed exchange rate of Rs. 290 against the US dollar. This assumption will likely influence various financial decisions, from import duties and debt servicing to development spending and public sector wages.
Budget Assumptions Begin to Take Shape
According to early reports, the Ministry of Finance has based key budget estimates on an exchange rate of Rs. 290 per USD. This projection is slightly higher than the current market rate, suggesting the government may be preparing for possible fluctuations in the currency market during the fiscal year.
Budget assumptions such as the exchange rate, inflation expectations, and revenue targets are crucial in setting the tone for national financial planning. They affect everything from fuel and electricity prices to the cost of imported goods and external debt repayments.
Why Rs. 290?
Economic analysts suggest that using a conservative estimate like Rs. 290 per dollar allows the government to build a buffer into its calculations. With international loans, IMF commitments, and trade deficits putting pressure on the rupee, planning for a slightly weaker currency gives the government room to manage unforeseen challenges.
“This figure doesn’t necessarily mean the dollar will rise to Rs. 290, but it helps in creating a safer fiscal cushion,” said a senior economic advisor.
Impact on the Economy and People
Using Rs. 290 per dollar means that the cost of imported goods, like fuel, machinery, and food items, could go up in calculations. This might lead to higher inflation. However, the government may continue to provide subsidies on essential items to protect the lower-income population.
Focus of the Budget
The upcoming budget is expected to focus on economic stability, investment in key sectors like agriculture, energy, and IT, and improving tax collection. The goal is to meet IMF conditions while supporting local development.
