AI Generated Summary
- The United States has called on Pakistan to bring its defence and intelligence expenditures under parliamentary or civilian supervision, describing the move as essential for boosting fiscal accountability and transparency.
- This year’s Fiscal Transparency Report assessed governments on a range of practices, including debt disclosure, the independence of auditing institutions, and oversight of sensitive spending such as defence and intelligence budgets.
- The recommendation comes from the US State Department’s 2025 Fiscal Transparency Report, released on Friday, which evaluates the openness of government finances in 140 countries and entities.
The United States has called on Pakistan to bring its defence and intelligence expenditures under parliamentary or civilian supervision, describing the move as essential for boosting fiscal accountability and transparency.
The recommendation comes from the US State Department’s 2025 Fiscal Transparency Report, released on Friday, which evaluates the openness of government finances in 140 countries and entities. The annual review examines how effectively governments disclose, audit, and manage public funds.
In its section on Pakistan, the report stated that “the military and intelligence budgets were not subject to adequate parliamentary or civilian public oversight.” It recommended corrective steps, including timely disclosure of these budgets to civilian institutions.
Calls for Greater Budgetary Openness
The report also criticized Islamabad for failing to publish its executive budget proposal within a reasonable timeframe, limiting opportunities for informed debate. It urged earlier publication to enable scrutiny and participation from legislators and the public.
On debt obligations, the assessment noted that Pakistan released only partial information, particularly regarding liabilities tied to state-owned enterprises. The report suggested comprehensive disclosure of debt, including details of state-run corporations, as a way to strengthen transparency and investor confidence.
Progress Recognized
Despite highlighting weaknesses, the report acknowledged areas where Pakistan has made progress. It noted that the government’s enacted budget and end-of-year reports were publicly accessible and subject to auditing by the supreme audit institution, which it praised for meeting international independence standards. Audit findings, the report observed, were released in a timely manner.
The assessment further pointed out that Pakistan had established clear regulations for awarding natural resource extraction contracts and licences, with basic information on such agreements made available to the public.
Mounting Fiscal Pressures
The release of the transparency review coincides with Pakistan’s announcement of its 2025–26 budget, which sets spending at Rs17.57 trillion. Debt servicing will consume Rs9.7 trillion, while defence spending has been allocated Rs2.55 trillion — representing nearly a 20 percent increase compared to last year, according to Dawn.
The State Department said its recommendations were designed to bolster both domestic trust and international confidence in Pakistan’s financial management. The reforms, it stressed, are particularly critical as the country continues to seek external financing and foreign investment to stabilise its fragile economy.
Wider Review
This year’s Fiscal Transparency Report assessed governments on a range of practices, including debt disclosure, the independence of auditing institutions, and oversight of sensitive spending such as defence and intelligence budgets. The findings on Pakistan mirror concerns raised in previous reports, underscoring long-standing challenges in aligning military expenditure with civilian oversight.
