The United States has urged Pakistan to strengthen fiscal transparency by subjecting military and intelligence budgets to parliamentary and civilian oversight. Washington’s call was made through the Fiscal Transparency Report‑2026 released by the Department of State.

The report highlighted that Pakistan failed to publish its executive budget proposal within a reasonable period. It noted that only limited information on debt obligations, including those of major state‑owned enterprises, was made publicly available.

The initiative is designed to ensure that US taxpayer funds are used appropriately when foreign assistance is deployed. Annual reviews of fiscal transparency are conducted for governments receiving US aid, and these reviews provide opportunities to champion transparency in bilateral discussions.

The report confirmed that Pakistan made its enacted budget and end‑of‑year report widely accessible to the public, including online. However, the executive budget proposal was not published promptly, undermining transparency benchmarks.

Military and intelligence budgets were found to lack adequate parliamentary or civilian oversight. The report recommended that Pakistan take steps to make its executive budget proposal publicly available within a reasonable timeframe.

It also asked Pakistan to disclose detailed information on government debt obligations, including those of state‑owned enterprises, and to subject defence and intelligence spending to public scrutiny. These measures were identified as critical for improving fiscal transparency.

The report observed that publicly available budget documents provided a substantially complete picture of most planned expenditures and revenues, including natural resource revenues. It assessed the information as generally reliable and subject to audit by the supreme audit institution.

Audit reports were made publicly available within a reasonable period and contained substantive findings. The supreme audit institution was judged to meet international standards of independence.

The government was found to specify in law or regulation the criteria and procedures for awarding natural resource extraction contracts and licences, and appeared to follow these in practice. Basic information on natural resource extraction awards was made publicly available.

The sovereign wealth fund was described as having a sound legal framework. The government also published accessible information on public procurement contracts, reinforcing transparency in resource management.

This push by Washington reflects broader concerns about Pakistan’s opaque fiscal practices, particularly in defence and intelligence spending. Transparency in these areas is seen as essential to ensure accountability, reduce corruption risks, and align Pakistan with international standards.

PTI