The recommendation was included in the US Department of State’s 2025 Fiscal Transparency Report, released on Friday. The annual assessment reviews budgetary openness across governments, focusing on how states disclose, audit, and manage public funds.
The United States has called on Pakistan to place its defence and intelligence budgets under parliamentary or civilian oversight, describing it as a vital measure to improve fiscal accountability and transparency, the news agency ANI reported, quoting the Dawn.
The recommendation was included in the US Department of State’s 2025 Fiscal Transparency Report, released on Friday. The annual assessment reviews budgetary openness across governments, focusing on how states disclose, audit, and manage public funds.
Pakistan could take to improve fiscal transparency
“The military and intelligence budgets were not subject to adequate parliamentary or civilian public oversight,” the report stated in its Pakistan section. It added that “steps Pakistan could take to improve fiscal transparency include subjecting the military and intelligence agencies’ budgets to parliamentary or civilian public oversight.”
The State Department also urged Pakistan to publish its executive budget proposal on time. “The government… did not publish its executive budget proposal within a reasonable period,” the assessment noted, adding that earlier release would allow for informed debate and scrutiny.
On debt disclosure
On debt disclosure, the report observed that “the government made only limited information on debt obligations, including major state-owned enterprise debt, publicly available.” It recommended “disclosing detailed information on government debt obligations, including for state-owned enterprises.”
While highlighting shortcomings, the report acknowledged areas of progress. Pakistan’s “enacted budget and end-of-year report [were] widely and easily accessible to the public, including online,” and budget information was “generally reliable and subject to audit by the supreme audit institution.” It also praised the independence of the audit institution, saying it “met international standards of independence” and published audit findings within a reasonable period.
The report also highlighted that Pakistan “specified in law or regulation, and appeared to follow in practice, the criteria and procedures for awarding natural resource extraction contracts and licences,” while ensuring that “basic information on natural resource extraction awards [was] publicly available.”
However, the 2025 review reiterated concerns from previous reports regarding gaps in debt transparency and the lack of legislative oversight of defence spending. The release comes amid rising budgetary pressures in Pakistan, with the 2025-26 budget setting allocations at Rs 17.57 trillion. Of this, Rs 9.7 trillion is earmarked for debt servicing, while Rs 2.55 trillion has been designated for defenceโa nearly 20% increase from the previous year.
The State Department stated that its recommendations aim to strengthen public trust and international confidence in Pakistanโs financial management, particularly as the country seeks critical external financing and investment for economic stability.
The 2025 Fiscal Transparency Report assessed 140 governments and entities, evaluating practices such as timely budget publication, debt disclosure, audit independence, and oversight of sensitive spending, including defence and intelligence.
(With ANI inputs)
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