The United States has recommended that Pakistan subject its defence and intelligence budgets to parliamentary or civilian oversight, citing it as a key step to enhance fiscal accountability and transparency, Dawn reported, citing the recently released US Department of State’s 2025 Fiscal Transparency Report.Â
The annual report, which evaluates budget transparency in 140 countries, found that Pakistan’s military and intelligence spending was not adequately overseen by the legislature or civilian bodies. It urged Pakistan to ensure timely publication of its executive budget proposals to enable informed public debate and scrutiny.
The report also highlighted shortcomings in debt disclosure, noting that information on government debt obligations, including those of state-owned enterprises, was limited. It recommended making detailed debt data publicly available to improve transparency.
While pointing out these gaps, the report acknowledged progress in other areas. Pakistan’s enacted budget and end-of-year report are widely accessible, reliable, and subject to audit by the supreme audit institution, which the report commended for meeting international standards of independence and publishing audit findings promptly.
The report noted that Pakistan appears to follow legal procedures for awarding natural resource extraction contracts and provides basic public information on such awards. However, it echoed previous concerns regarding the lack of legislative oversight over defence spending and limited transparency in debt reporting.
The recommendations come as Pakistan faces significant budgetary pressures. The 2025-26 budget totals Rs17.57 trillion, with Rs9.7 trillion allocated for debt servicing and Rs2.55 trillion for defence, marking a nearly 20 percent increase from last year.
The US report emphasizes that greater fiscal transparency, including oversight of sensitive spending, is crucial for boosting public trust and international confidence, particularly as Pakistan seeks external financing and investment to support economic stability.
