ISLAMABAD: The federal government has estimated the upcoming fiscal year’s budgets at an exchange rate of Rs290 per dollar, down by Rs5 from the current fiscal year’s rate of Rs295.
Sources say the main aim is to calculate foreign aid, repayments and loans in local currency more accurately. The government also expects to pay around Rs8.5 trillion in interest on debts.
Experts believed that a stronger currency and lower policy rate may help cut debt serving costs.
Reports suggest that compared to the ongoing fiscal year, Pakistan could save over Rs1.4 trillion in debt payments.
Meanwhile, the government and the International Monterey Fund (IMF) are kicking off online budget talks today.
An IMF delegation is expected to arrive next week, during virtual discussion, Pakistan will lay its budget cards on the table and share key proposals. Officials are hopeful of smoother talks to avoid any bumps down the road.
